October 20, 2015.
For years, Vietnam has been working at privatizing the companies that it owns or has a stake in, but to no avail. However, after ordering the State Capital Investment Corp. (SCIC), Vietnam’s wealth fund, to sell its shares in 10 Vietnamese companies, analysts expect it will work this time around. They forecast more than $3 billion in divestment sales and a market boost after Vietnam raises the ceiling of ownership or stops the limit on foreign ownership of companies. This move will benefit the Vietnamese economy on both the government and consumer ends. The government needs more money and will be able to raise funds by selling these highly demanded Vietnamese stocks. With the popularity of some of their state-owned investments, the stocks will attract premium prices when sold.
Louie Nguyen, CFA is the CIO of San Diego-based Soledad Investment Management. Soledad invests qualified clients’ assets in markets around the world, including Vietnam.