The Government estimates the total earning of US$3 billion.
The government owns the shares via the State Capital Investment Corporation (SCIC), and currently possesses 45.1 percent of Vinamilk, or a stake worth as much as $2.5 billion. State holdings in the other nine enterprises are estimated to be worth $500 million. The stake owned by the government in FPT Telecom and Bao Minh are 50.2 percent and 50.7 percent, respectively.
The SCIC is required to choose a suitable time for such divestments to gain the highest possible benefit and report to the government for approval.
The SCIC is also allowed to continue owning a stake in nine enterprises, according to the fiat. With the divestment decision already made, what remains to be seen is who will acquire these government shares. These shares should be sold to strategic investors, who will bring huge capital to the government, while enabling social enterprises to operate more effectively and professionally.
Vinamilk is on the top listed company by market value, is 45 percent owned by the government, with the largest other shareholder F&N Dairy Investment, a unit of conglomerate Fraser and Neave, with 9.54 percent. Minor stakeholders include asset management firms of Templeton and J.P. Morgan Singapore. Vinamilk dominates the local market and its value has climbed 10 times over the past decade, from $500 million in 2006 to around $5.47 billion now, making it a rare success story in a state sector plagued by bad debt, inefficiency and low profitability. The current 49 percent foreign shareholding ceiling in Vinamilk has long been taken up and new rules allowing up to 100 percent foreign ownership in many sectors remain muddied, with investors awaiting clarity on definitions and regulations.
