Vietnam Privatization Slowed by Book Value vs. Market Value Rule

The Ministry of Finance in Vietnam plans to privatize 367 state-owned enterprises by 2015 (as many as 93 SOEs this year).   The privatization process is slower than hoped because of  the government’s rule that  SOEs cannot sell stakes to investors  at prices below the SOE’s book value.  Government officals are asked to consider allowing more autonomy for SOE’s to accept investor offers at market value instead of book value.

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