VAFI urges government to divest large beverage firms
VAFI urges government to divest large beverage firms
The Viet Nam Association of Financial Investors (VAFI) has sent a proposal on the divestment of State holdings and the listing of Viet Nam's two largest beverage companies.
In its proposal to the Government, VAFI said the Ministry of Industry and Trade, representing the State ownership, should sell its stake holding in Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) and Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco).
The ministry currently holds 90 per cent and 82 per cent stake in Sabeco and Habecos charter capital, respectively.
The divestment can help the State raise US$3 billion, which should be used in developing public transport projects, VAFI said.
The association said the divestment process should be conducted through auctions to ensure transparency.
VAFI also urged that the listing of Sabeco and Habeco on the exchanges be hastened to improve transparency and efficiency.
The two beverage companies were privatised more than eight years ago but had not been listed on the exchanges, which combined with poor corporate governance had resulted in inefficient operation, VAFI said.
More than 10 years ago, Sabeco was making profits double of what Vinamilk is making currently. Its profits were now, however, three times lower, according to the association. VAFI said the growth rate of Sabeco and Habeco in the last eight years was far below their potential.
In October last year, the government had asked the State Capital Investment Corporation to divest 10 State companies, including FPT, Vinamilk and Binh Minh Plastics.
