Industry Firms Struggle to Find Strategic Investors
Businesses under the industry and trade ministry have not attracted foreign strategic investors during their privatization, said Phan Dang Tuat, head of the ministry’s board for enterprise renovation and development.
The initial public offerings of three corporations under Vietnam National Coal and Mineral Industries Group (Vinacomin), with a total registered capital of one trillion dong ($44.5 million), were not attractive to strategic investors as the state ownership at the corporations was high at 98% to 99%.
The divestment and privatization at Vietnam National Oil and Gas Group (PetroVietnam) were also lower than expected due to unfavorable factors in the markets, while the capital in its corporations was too large for strategic shareholders.
Da Nang Calls for $733 Million in Investment
The central city of Da Nang has called for investment in 19 Public-Private Partnership (PPP) projects, with total capital of 16.5 trillion dong ($733 million).
These projects are key for building up the city as a “green city”, following the introduction of an adjusted master urban plan for 2030 and 2050, which includes ring roads, bridges, wholesale markets for livestock and farming products and a solid waste management project, as well as tourism initiatives, automatic parking tolls, a theatre and medical projects.
Vietnam Firm Denies Fraud Accusations after World Bank Debarment
A Vietnamese waste water treatment company has rejected accusations of fraudulent and collusive practices in two projects funded by the World Bank, saying it was unfairly debarred by the development lender.
Nguyen Phuong Quy, general director of SFC Vietnam Investment Development for Environment Company, told news website Zing that the company did not take part in the bidding process for the two projects.
Thailand among Top Ten Foreign Investors in Vietnam
Thailand is one of top ten foreign investors in Vietnam with 300 valid projects, according to a recent Vietnam-Thailand trade and investment promotion workshop in HCM City.
Two-way trade between Vietnam and Thailand has constantly increased in recent years and hit $11.62 billion last year. It is expected to reach $15 billion by 2020.
The stock of Masan
Group (MSN) has increased 8.7% since Thursday to 75,000 dong ($3.33) a share at the close on Friday, exchange data showed.
Singha Group, the Thai conglomerate that produces the namesake beer, has struck a deal to acquire minority stakes valued at $1.1 billion in certain subsidiaries of Masan Group, which has a market capitalization of $2.5 billion and business interests ranging from beer to consumer foods to banking and resources.
Vietnam Posts $3.17 Billion Trade Deficit in 2015
Vietnam has earned an estimated $14.2 billion from exports in December while spending $14.5 billion on imports, resulting in a trade shortfall of $300 million in the month, according to preliminary data of the General Statistics Office (GSO).
The Southeast Asian country has posted a trade deficit of $3.17 billion in 2015, accounting for 1.95% of the export revenue, much lower than the 5% target set by the parliament.
As many as 7,901 businesses have been given a license for establishment in December, rising nearly 20% from the previous month, the Tuoi Tre (Youth) newspaper reported, citing data of the Ministry of Planning and Investment.
The number of startups in December has brought the total number in the whole 2015 to 94,754, a record high on a yearly basis. The figure represents a 30% increase from a year earlier, thanks to the effect of the revised Law on Business.
Authorities of Quang Ninh
province have made great efforts to build up a business environment that is favorable and friendly to investors and enterprises, Dau Anh Tuan, director of the Vietnam Chamber of Commerce and Industry (VCCI
)’s Legal Department told BizLIVE.
Saigon Beer, Alcohol and Beverage Corporation (Sabeco), which holds the biggest share of the Vietnamese beer market, is building a roadmap to cut the state holding in it by at least a 50% stake in the firm, Sabeco’s newly-appointed Chairman Vo Thanh Ha stated at a Ministry of Industry and Trade conference on December 24.
The stake will be offloaded in two tranches, with a stake of between 20% and 30% each. The second tranche will take place after the first one at least one year to secure the firm’s operational stability, Mr. Ha added.