Vietnam to ban state companies from investing in real estate, banks

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People drive past the new urban area Trung Hoa Nhan Chinh in Hanoi. Vietnam has ordered state-owned companies to stop investing in real estate. Photo: Reuters People drive past the new urban area Trung Hoa Nhan Chinh in Hanoi. Vietnam has ordered state-owned companies to stop investing in real estate. Photo: Reuters

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The government has introduced a new rule that will ban state-owned enterprises from investing in real estate, banks and stock markets, a move that is part of its ongoing efforts to restructure the economy.
The rule, which will take effect in December, also requires state firms that have already made investments into these sectors to come up with plans for disinvestments.
It says there will be exceptions but such cases need to seek special permissions from the government.
State-owned companies whose main line of business is real estate are not affected by the new rule.
Vietnam has been trying to restructure its troubled state sector over the past few years, after shipping giants Vinashin and Vinalines were caught in a spate of financial problems that threatened not only the health of the sector but also its credibility.
Officials have many times asked state enterprises to refrain from investing in areas that are beyond their expertise to avoid unnecessary risks.
Earlier this week the government announced that it will sell stakes in major state companies, including lucrative, strong performers such as dairy producer Vinamilk and tech company FPT.

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