Is the SOE divestment wave about to return?

The State Capital Investment Corporation (SCIC) plans to move ahead with divestments from 31 SOEs in the first batch of 2025.

According to the equitization plan for 30 enterprises from 2023 to 2025, the state aims to raise around VND 36.823 trillion. However, no equitizations were carried out in 2023, 2024, or the first quarter of 2025. This means that in the remaining nine months of 2025, all 30 companies will need to be equitized to meet the plan.

Mounting Pressure in the Final Nine Months

In Q1 2025, based on information from the Ministry of Finance’s work program, no state capital divestments took place. Meanwhile, as of March 1, 2025, the Ministry of Finance officially assumed responsibility for 18 state-owned groups and corporations. This includes exercising ownership rights and responsibilities over these state enterprises and the state’s capital in them.

“The Ministry of Finance, in its role as the state ownership representative, has issued official communications requesting 23 groups, corporations, and enterprises under its jurisdiction to report on their 2024 business performance and submit 2025 business plans. These plans must ensure growth no lower than that of 2024 and aim for at least 8% growth. Specifically, revenue targets for both parent companies and consolidated entities must increase by no less than 8%, as these figures contribute significantly to GDP calculations,” the Ministry of Finance stated.

Deputy Prime Minister Hồ Đức Phớc emphasized, “The handover of 18 enterprises is intended to streamline the organizational structure and strengthen the economy, helping to accelerate national development and prosperity.”

This is also a key moment for state-owned enterprises to take the lead in driving high growth, collaborating with private sector players to “gather the winds into a storm” and create breakthroughs. However, with divestment and equitization targets now squeezed into the year’s final stretch, these goals pose significant challenges for regulatory bodies. The Ministry of Finance itself has acknowledged that long-standing issues—from planning to implementation and oversight—cannot be resolved overnight.

Filtering Opportunities from “Golden Egg-Laying Hens”

In a recent move signaling a race against time, SCIC released a list of 31 enterprises slated for divestment in its first batch of 2025. Noteworthy names drawing market interest include:

• FPT Corporation (SCIC holds nearly VND 840 billion, 5.7%)

• Domesco (DMC) (VND 120.5 billion, 35%)

• Hai Phong Thermal Power (HND) (VND 450 billion, 9%)

• Quang Ninh Thermal Power (QTP) (VND 514 billion, 11.4%)

• Tien Phong Plastic (NTP) (VND 528.8 billion, 37.1%)

• Seaprodex (SEA) (VND 728.28 billion, 93%)

Some of these companies—such as Binh Thuan Mineral Construction Materials, NTP, and FPT—were already included in SCIC’s second divestment batch of 2024. Notably, NTP and FPT are considered “golden egg-laying hens,” offering attractive dividends to SCIC. Early in 2025, SCIC received over VND 71 billion in dividends from NTP. FPT, meanwhile, finalized its first dividend payment for 2024 and is expected to complete a second one in Q2 2025, with a total payout ratio of 20%.

SCIC also holds a 50.17% stake in FPT Telecom (FOX), which is expected to pay dividends soon, with SCIC estimated to receive over VND 494 billion based on its shareholding.

Given NTP’s market leadership in plastics and FPT’s position as an IT industry leader—with its stock price still discounted from 2024 levels after strong foreign selling pressure—as well as Domesco’s potential in the growing healthcare sector (set for auction on May 12), investors are eagerly watching these divestment events. These sales are also seen as likely to succeed.

These events offer opportunities for investors hoping to “ride the divestment wave,” much like what happened with FPT, NTP, or BMP in the past. However, as one financial expert warns, jumping on every wave could backfire.

Furthermore, for enterprises already listed—especially those on the UPCoM exchange—with low liquidity and SCIC holding either very large stakes (making full-lot auctions difficult) or very small ones (under 25%, making them unattractive for control-seeking M&A deals), auctions might not meet expectations.

Dr. Nguyễn Đức Độ from the Institute of Economics and Finance (Academy of Finance) points out that the key to successful divestment lies in accurate pricing. Valuation must consider not only internal business fundamentals but also broader macroeconomic and stock market conditions. The market remains hopeful that, despite potential delays, the launch of the KRX trading platform and progress toward market upgrade will boost both equitization and state capital divestment in the future.