PM gives go-ahead to Vinalines selling 80% of Hai Phong Port and Saigon Port after failure of IPOs.
Prime Minister Nguyen Tan Dung has decided to grant permission to Vietnam National Shipping Lines (Vinalines) to divest 80 per cent of its capital in both Hai Phong Port and Saigon Port.
The decision comes after the initial public offering (IP) of both ports failed to attract major interest among investors. The PM has therefore given approval to private investors securing up to 80 per cent.
The government previously indicated that the State’s ownership in Hai Phong Port should be from 65 to 75 per cent and 50 to 65 per cent in Saigon Port. At these levels, however, attracting investors is a problem. Moreover, Saigon Port only holds a 10.5 per cent market share among ports around Ho Chi Minh City while Hai Phong port has a market share of only 28.7 per cent among northern ports.
The decision by the PM opens up an opportunity for Vingroup, who has already proposed buying an 80 per cent stake in the two ports. The State currently owns 95 per cent of Hai Phong Port and 65.4 per cent of Saigon Port, with Vinalines being the representative of State capital.