Ministry of Finance cracks the whip on PetroVietnam divestment

By Hung Le   March 23, 2019 | 07:38 am GMT+7
Ministry of Finance cracks the whip on PetroVietnam divestment
PVN sought more time for the divestment since it had to ensure “optimal returns for the government.” Photo acquired by PVN

The Ministry of Finance has reiterated that the loss-making oil and gas group PetroVietnam has to divest from non-core sectors. 

In 2017 the government had ordered PetroVietnam (PVN) to complete its divestment from non-core sectors by 2020.

PVN had to restructure, equitize and sell its stakes in 10 subsidiaries in "sensitive" sectors such as real estate, investment funds, securities, and insurance under a three-year government roadmap.

But earlier this year it sought more time for the divestment since it had to ensure "optimal returns for the government."

However, the government is in no mood to oblige and in fact wants PVN to speed up the process, but has offered no explanation. 

In 2017 Vietnam saw two major divestment deals -- the privatization of Sabeco, the country’s biggest brewer, and Vinamilk, its biggest dairy company. 

But PVN has been reluctant, especially to sell its stakes in certain enterprises that were cash cows. 

The companies in which it has to pull out are securities firm PetroVietnam Union Finance Investment JSC, Green Indochina Development JSC (real estate, minerals and finance), PetroVietnam Insurance JSC, Binh Son Refinery JSC (oil refinery), and PV Gas. 

 
 
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