Removing bottlenecks in State capital divestment

Against this backdrop, the Ministry of Finance has proposed multiple measures to accelerate capital sales, as 2025 marks the final year of the 2021–2025 restructuring roadmap.

Proposal to Sell in Blocks

One of the key measures proposed by the Ministry of Finance is to allow a reduction of the starting price by up to 10% per attempt—if auctions or negotiated sales are unsuccessful—with a maximum of three reductions. This proposal aims to remove bottlenecks for nearly 40 “hard-to-sell” enterprises under the State Capital Investment Corporation (SCIC), with a total estimated value of around VND 433 billion.

According to the Ministry of Finance, recent divestment efforts at SCIC show that many enterprises operate inefficiently, lack investor appeal, and have failed multiple divestment attempts. Continuing to divest individual investments separately would likely prolong the process and face significant challenges.

In a draft Government decree on the operational and financial management mechanisms for state capital investment and trading enterprises, the Ministry proposes a more proactive approach to capital transfers. Specifically, selling in blocks—bundling multiple assets, including both high- and low-quality shares, and potentially attaching receivables—could improve the likelihood of successfully restructuring inefficient enterprises and accelerate the divestment process.

In this context, VNPT’s auction of shares in Maritime Bank of Vietnam (MSB) attracted market attention, with a starting price of VND 18,239 per share—nearly double MSB’s market price of VND 12,400 per share on December 12. While trading liquidity in several stocks surged, MSB’s share price declined sharply ahead of the offering date.

Experts note that stock price movements largely depend on the attractiveness of the divested enterprise, including its sector, profit outlook, and asset base. VNPT has registered to auction 188.7 million MSB shares, valued at VND 3.441 trillion based on the starting price.

VNPT has also offered for sale more than 10 million shares in Post and Telecommunications Information Technology JSC (ICT), equivalent to a 31.43% stake, at a starting price of VND 74,106 per share (approximately VND 750 billion). In addition, it has offered over 2 million shares in Vietnam Technology and Communications JSC (TTN) and more than 2.1 million shares in VTC Telecommunications JSC (VTC), equivalent to a 46.67% stake, at a starting price of VND 49,200 per share.

Allowing a 10% Reduction in Starting Prices

The draft decree also stipulates that in cases where capital transfers include receivables, investors purchasing the shares must fully settle both the share purchase payment and the associated receivables on behalf of the enterprise before ownership transfer procedures are completed. This provision stems from practical issues at SCIC, where some financially distressed enterprises have been unable to pay dividends or receivables owed to SCIC, thereby obstructing divestment efforts.

For unlisted enterprises—or those listed but trading off-exchange—the draft allows adjustments to reduce the starting price if auctions or negotiated sales fail. The starting price may be reduced by up to 10% for each subsequent offering, with a maximum of three reductions, and intervals between adjustments not exceeding two months.

For loss-making enterprises or those that have failed at least three auction attempts, state capital investment and trading enterprises are permitted to further reduce the starting price to reattempt auctions. However, the revised price must not fall below the book value (after provisions) or, for listed or registered enterprises, the 30-day average reference price prior to approval of the transfer plan. Notably, price reductions will no longer be constrained by the previous six-month validity limit of valuation certificates.

The Ministry of Finance reports that SCIC currently manages nearly 40 “hard-to-sell” enterprises with a combined value of approximately VND 433 billion. Although the scale is modest, the inability to divest ties up capital that cannot be reinvested in priority areas. These enterprises have been offered multiple times at prices determined by valuation certificates, all without success, underscoring the need for more flexible mechanisms.

For enterprises that have been equitized but have not completed the valuation of the State’s capital contribution—and are operating at a loss with risks of capital erosion—the draft allows SCIC’s Members’ Council or Chairperson to decide on divestment implementation. Previously, such cases required reporting to the owner’s representative agency and the Prime Minister for approval. Legal obstacles in determining State capital value have caused many cases to remain unresolved for years, while enterprises have been unable to raise additional capital for recovery due to being on divestment lists, increasing the risk of State capital loss.

Experts believe that granting greater autonomy to the Members’ Council will help expedite the resolution of distressed enterprises, preserve State capital, and ease approval pressures on higher authorities.

According to Ministry of Finance data, as of June this year, SCIC managed 112 enterprises with total book-value capital of VND 56.284 trillion. From 2014 to June 2025, SCIC divested from 396 enterprises, generating proceeds of VND 47.99 trillion. As of September, SCIC had invested VND 55.086 trillion. Overall, SCIC’s charter capital remains modest relative to investment expansion needs.

It is also noted that 2025 is the final year of the 2021–2025 period, during which accelerating state divestment from SOEs is a key priority. The focus is on strategic sectors, alongside removing legal bottlenecks, enhancing transparency, and attracting private investment. SCIC has announced its first batch of divestments at major enterprises such as FPT, Domesco, and Hai Phong Thermal Power.