Sign up | Log in



Home  >>   Daily News  >>  Vietnam  >>Economy >>Gov't decides some sectors off limits for State enterprises
NEW UPDATES Asean Affairs  21 October  2015  

Gov't decides some sectors off limits for State enterprises

The Government's decision to prohibit State-owned enterprises (SOEs) from investing in certain areas has been hailed by economists.

A recent decree bans, with effect from December 1, SOEs from investing in property, banking and finance, insurance, and stocks unless they are in those industries or are expressly permitted by the Government.

However, the decree gives SOEs the discretion to invest in non-core areas and abroad.

Analysts said the new policy would speed up the process of SOEs' divestment from sensitive sectors like banking and finance, which is underway.

In the past State-owned groups and corporations used to scramble to sink their money in property and stocks in the quest for a quick buck. They ended up investing a cumulative VND23.74 trillion (US$1.67 billion), including VND11.4 trillion ($513.51 million) in banking, VND9.28 trillion ($408.02 million) in the properties, VND696 billion ($31.4 million) in securities, and VND677 billion ($30.5 million) in investment funds.

But with the cyclical property and stock markets going through a depression, many ended up losing heavily, which also affected their main business.

The Government was forced to step in and order SOEs to pull out all non-core investments by 2015. Though process began four years ago, but has yet to be completed.

Dang Quyet Tien, deputy director of the Ministry of Finance's Corporate Financial Department, said PetroVietNam (PVN) has sold its stakes in GPBank and OceanBank and is in the process of doing so in Pvcombank. It is also making preparations to merge its PGBank with Vietinbank, he said.

Electricity of Viet Nam (EVN) is wrapping up procedures to pull out of ABBank, and the Viet Nam National Textile and Garment Group has merged its finance company with Maritime Bank, he said.

"As of August the total value of SOE divestment from non-core areas was worth VND13.7 trillion ($616.5 million)."

But he admitted to Nguoi Lao Dong (the Labourer) newspaper that another VND18 trillion ($810.81 million) remains invested, VND11 trillion in banks and VND6 trillion in property.

To make the pullout from non-core sectors easier, he said the Ministry of Finance should remove the hurdles that stymie the development of the capital market.

Nguyen Tri Hieu, a senior economist, said the SOE's withdrawal from non-core areas should follow a road map since the capital market is not developed and any dumping of shares by the companies would affect it.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           October 21 , 2015 Subsribe Now !
• Philippines Hosts the ASEAN Plus Three Tourism Youth Summit Subcribe: Asean Affairs Global Magazine
• Pertamina, Sojitz to built $250 million power plant
• Luxury car demand to climb on consumption tax increase
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• XL subscribers in Bandung, Jakarta to enjoy 4G services
Gov't decides some sectors off limits for State enterprises 
Asean Analysis                   October 16, 2015
• Asean Analysis October 16, 2015
Vietnam Eyes Greater International Integration—and that’s Good News for the United States
Advertise Your Brand

Asean Stock Watch  October 20,   2015
• Asean Stock Watch-October 20, 2015
The Biweekly Update
• The Biweekly Update October 16, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand