Vietnam to sell state shares in automaker, construction firms

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A number for private firms are seeking to invest in the profit-making Vinamotor. Photo credit: VnExpress A number for private firms are seeking to invest in the profit-making Vinamotor. Photo credit: VnExpress

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The Vietnamese government has announced a plan to sell all its stake in three major firms to "strong and committed" investors.
Deputy Prime Minister Vu Van Ninh said in a new government statement that the government will divest from the automaker Vinamotor and road construction firms Cienco 5 and Cienco 6.
Vinamotor, officially known as Vietnam Motors Industry Corporation, started privatizing a year ago but more than 97 percent is still owned by the government.
Several private firms have expressed interest the company, which are worth around VND855 billion (US$39.2 million).
The company made a net profit of VND70.4 billion last year and VND8 billion in the first quarter of 2015, according to official data.
The government has a 63 percent stake in the VND439-billion Cienco 5 and a 94 percent stake VND492-billion Cienco 6.
It is looking for investors "committed to stay" with the companies for at least five years.
Construction firms of the transport ministry, including these two, have earned notoriety for delays and poor quality at various projects. So there has not been much interest shown for the Cienco companies, according to local media reports.

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