Vietnam intends to sell stakes of a number of state-owned companies later this year, which will include its national carrier Vietnam Airlines.
According to an article published by Associated Press, Vietnam's state media has revealed that prime minister Nguyen Tan Dung last week ordered to have shares of 11 companies under the control of the transport ministry be listed on the stock market. This has since been confirmed by a representative of Vietnam Airlines who told Business Traveller Asia-Pacific: "I [can] affirm that it is true. Our company is preparing for an IPO to take place in 2014."
This follows news that the country’s economic reform agenda, which includes making bloated state companies more profitable, has stuttered in recent years due to slowing growth and growing opposition within the ruling communist party.
While Vietnam’s stock market lists hundreds of companies, most are too small to attract foreign investors. However, by putting the likes of Vietnam Airlines, Vietnam Automobile Industry Corp, and Waterway Transportation Corp on the market for partial sale, the prime minister hopes that this will renew momentum for the economic reform.
For more information, visit www.vietnamairlines.com
Clement Huang