Siemens, Idemitsu among suitors drawn to Vietnam energy selloff
Hanoi
BUYERS from Germany, Japan, India and beyond are kicking the tyres on Vietnam's great state asset sale.
The government's hunt for overseas investment in some of the country's biggest energy companies has yielded interest from firms including Siemens AG, Idemitsu Kosan Co and Indian Oil Corp, among others, according to Deputy Minister of Industry & Trade Hoang Quoc Vuong.
"We're actively in the process to find foreign investors" and intend to finalise the deals by the end of the year, Mr Vuong said in an interview in Hanoi on Thursday, adding that the timeline for the stake sales was set by Prime Minister Nguyen Xuan Phuc.
According to Mr Vuong, the following deals are in the works:
Vietnam, which needs billions of dollars in infrastructure investments, is dramatically accelerating sales of stakes in state-owned companies to boost revenue and ease a strained budget, while seeking to exceed its economic growth target of 6.7 per cent this year.
Stakes in 245 state companies are up for sale this year, Deputy Prime Minister Vuong Dinh Hue said in a Bloomberg TV interview in January.
Arun Kumar Sharma, finance director of Indian Oil, confirmed that discussions are ongoing.
Ratchaburi said by e-mail that it has been looking for potential investments in Vietnam and waiting for more information on the deal. Siemens declined to comment. SK Energy, Taekwang and Idemitsu did not respond to requests for comment on Friday.
"Vietnamese energy companies have good potential to grow due to rising demand in the domestic market while supply is still limited," Vu Minh Khuong, an associate professor at the National University of Singapore who researches economic development, said by e-mail.
The Vietnam government is banking on an expanding middle class and its youthful population to lure investors. Among the assets sold last year was a majority stake in the country's top brewer Saigon Beer Alcohol Beverage Corp, or Sabeco, to Thai Beverage Pcl and its partner in December, for US$4.8 billion. BLOOMBERG
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