VN wants to keep at least 65% equity in state-owned banks

VN wants to keep at least 65% equity in state-owned banks VietNamNet Bridge – Except Vietinbank, other State-owned commercial banks are not allowed to sell more than 35% of the shares. The government has also permitted State-owned corporations to divest from non-core business fields below the face value.

The above regulations are stipulated in a newly-issued Resolution of the Government to accelerate equitization and divestments of State-owned enterprises.

Accordingly, the Government requested State-owned corporations and enterprises to determine the rate of capital held by the state based on the classification criteria and their role to the development of related industries, but the rate must not be more than 65%.

However, the Vietnam Insurance Group (Bao Viet) and the joint-stock commercial banks have to maintain the percentage of shares held by the State at least 65%. However, the Government also stated that the Vietnam Bank for Industry and Trade (Vietinbank) is permitted to sell more than 35% of the State capital.

In fact, in Vietinbank, the State accounts for 64.5% of the charter capital. The Bank of Tokyo – Mitsubishi UFJ (BTMU) holds 19.73% stake.

At the Bank for Foreign Trade (Vietcombank), the State capital is 77.11% and the strategic partner – Mizuho Bank owns 15% stake.

Meanwhile, the Bank for Investment and Development of Vietnam (BIDV), which has just been listed on the stock exchange, the State holds up to 95.76% of the capital.

According to the Resolution, if state-owned firms fail to implement the equitization and disinvestment from non-core business fields, their leaders will have to bear responsibilities. Moreover, ministers, heads of ministerial-level agencies and the chairs of the provinces must also take responsibility if delayed completion of the plan.

Na Son

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