Vietnam Airlines to sell 15% stake to foreign investors

[HANOI] Vietnam Airlines Corp, the national carrier, plans to sell as much as a 15 per cent stake to foreign investors as the government seeks to accelerate the overhaul of state-owned companies and spur economic growth.

The government plans to sell from 10 per cent to 15 per cent of the airline, most likely after an initial public offering (IPO) in September, Deputy Transport Minister Nguyen Hong Truong said in an interview in Hanoi last week. The carrier is valued at 57 trillion dong (S$3.3 billion) by Morgan Stanley and Citigroup Inc, Mr Truong pointed out.

The national carrier is among more than 400 state-run companies that Vietnam will equitise by the end of next year to boost the country's productivity and restructure the economy. Prime Minister Nguyen Tan Dung is considering raising foreign ownership caps at listed companies.