ID :
25876
Tue, 10/21/2008 - 22:09
Auther :
Shortlink :
http://m.oananews.org//node/25876
The shortlink copeid
Foreign investors given more access to SOEs
Hanoi (VNA) - Foreign investors will be eligible to fully buy State-owned
enterprises (SOEs) operating in the sectors that not committed by Vietnam
concerning for foreign investors' business rights and approved by Prime
Minister for being transferred and sold.
This is a new point in recently issued Decree 109/2008/ND-CP on the
transferring and selling of State companies.
For sectors that Vietnam has made commitments for foreign investment,
foreign investors are entitled to join their local partners to buy State
companies' stakes at ratio which is not exceed Vietnam's committed level in
that sector.
The decree also stipulates for the first time that intermediary financial
institutions and individuals coming from institutions that got involved in
SOEs' evaluation and auctions would not be allowed to buy stakes in SOEs.
Replacing Decree 80/2005/ND-CP on transferring, selling, contracting and
leasing State companies, the issuance of the new decree is expected to open
wider doors for foreign enterprises to get involved in buying and selling
enterprises and heat up the merger and acquisition (M&A) market in Vietnam
.
In the past two years, the acquisition and merger activities in finance
and banking sector have drawn keen interest from foreign investors.
In August alone, the French Societe-General bank bought of 15 percent
stake in the Southeast Asian joint stock bank, while HSBC increased its
stake in Techcombank to 20 percent and the Singaporean OCBC acquired 15
percent stake in VPBank.
TigerInvest' website www.muabancongty.com showed that in the first half
of 2008, 600 investment opportunities were offered on the website, in stead
of 200 for the whole 2007.
According to experts, merger and acquisition is the shortest way for
foreign investors to approach Vietnam 's market and take advantage of
Vietnamese partners' distribution networks as well as their working staff.
The activity also benefits the Vietnamese enterprises.
Head of the Foreign Investment Department under the Ministry of Planning
and Investment (MPI) Phan Huu Thang forecasts that Vietnam will see a
stronger M&A trend, especially in the context of integration and severe
competition. Between 35-50 percent of Vietnamese enterprises will be merged
in the next 6-10 years, Thang added.
MPI is working with related agencies to improve legal regulations for M&A
activity, Thang added.-Enditem
enterprises (SOEs) operating in the sectors that not committed by Vietnam
concerning for foreign investors' business rights and approved by Prime
Minister for being transferred and sold.
This is a new point in recently issued Decree 109/2008/ND-CP on the
transferring and selling of State companies.
For sectors that Vietnam has made commitments for foreign investment,
foreign investors are entitled to join their local partners to buy State
companies' stakes at ratio which is not exceed Vietnam's committed level in
that sector.
The decree also stipulates for the first time that intermediary financial
institutions and individuals coming from institutions that got involved in
SOEs' evaluation and auctions would not be allowed to buy stakes in SOEs.
Replacing Decree 80/2005/ND-CP on transferring, selling, contracting and
leasing State companies, the issuance of the new decree is expected to open
wider doors for foreign enterprises to get involved in buying and selling
enterprises and heat up the merger and acquisition (M&A) market in Vietnam
.
In the past two years, the acquisition and merger activities in finance
and banking sector have drawn keen interest from foreign investors.
In August alone, the French Societe-General bank bought of 15 percent
stake in the Southeast Asian joint stock bank, while HSBC increased its
stake in Techcombank to 20 percent and the Singaporean OCBC acquired 15
percent stake in VPBank.
TigerInvest' website www.muabancongty.com showed that in the first half
of 2008, 600 investment opportunities were offered on the website, in stead
of 200 for the whole 2007.
According to experts, merger and acquisition is the shortest way for
foreign investors to approach Vietnam 's market and take advantage of
Vietnamese partners' distribution networks as well as their working staff.
The activity also benefits the Vietnamese enterprises.
Head of the Foreign Investment Department under the Ministry of Planning
and Investment (MPI) Phan Huu Thang forecasts that Vietnam will see a
stronger M&A trend, especially in the context of integration and severe
competition. Between 35-50 percent of Vietnamese enterprises will be merged
in the next 6-10 years, Thang added.
MPI is working with related agencies to improve legal regulations for M&A
activity, Thang added.-Enditem
