Vietnam’s “Super Committee” a key step in the privatization program
The State Capital Management Committee (“SCMC”) was established on September 30th, 2018 to be responsible for managing 19 of Vietnam’s largest State Owned Enterprises (“SOEs”) previously owned and managed by five ministries. These include Electricity Vietnam (EVN) and PetroVietnam (PV).
DOE see’s this a very important initiative. It will engender increased independence of the Ministries, foster more competition, unlock growth and drive greater efficiency. Going forward, based on our dialogues with the various stakeholders involved, we expect the SOE privatization process to also be easier and faster.
There are several key implications for DOE. Firstly, the increased independence of Electricity Vietnam (“EVN”) will likely foster a more commercial negotiation for the 3,200MW LNG to power project in Bac Lieu Province. In parallel the Ministry of Industry and Trade (“MOIT”) can focus on its role as an independent policy maker and regulator. Secondly, we believe that there will be a plethora of subsequent deal origination opportunities amidst the related sectors of this privatization program.
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The Committee for Management of State Capital and the five relevant ministries sign a MOU at the launching ceremony (Photo: Nhan Dan Online)