According the equitization plan, the number of shares auctioned to ordinary investors is 114.8 million shares, accounting for 22.97% of the company’s charter capital. Strategic investors will buy 125 million shares, representing a quarter of VINAFOOD II’s charter capital. The criteria for choosing strategic investors include businesses having the total asset of at least 10 trillion VND (roughly 441.01 million USD) and the minimum chartered capital of 3,5 trillion VND (roughly 154.355 million USD). The strategic investors must also record positive after-tax profit in three consecutive years and there must be no accumulated losses by the end of 2015.

Strategic investors must also commit joining the company in implementing agricultural restructuring, linking with farmers to form a value chain in the field of rice production and export. Previously, the Deputy Prime Minister Vuong Dinh Hue also requested VINAFOOD II to deal with existing obstacles completely before starting the equitization process.

Based on the report released by VINAFOOD II, the company has been facing difficulties in business activities in recent times. Specifically, revenue in 2015 of VINAFOOD II was recorded at 22.7 trillion VND (equivalent to 1 billion USD), which is lower than the revenue in 2016 at 26.3 trillion VND (roughly 1.1). Also in 2015, VINAFOOD II reported a loss of 9 billion VND (396.000 USD), taking the accumulated loss to 1.06 trillion VND (46 million USD), while in 2013 and 2014, the company also suffered loss at 268 billion VND (11.8 million USD) and 907 billion VND (39 million USD), respectively. 

According to representative of the Ministry of Finance, in the first 9 months of 2017, Vietnam has 34 enterprises qualified for equitization. The total value of 34 enterprises approved for equitization is 80.6 trillion VND (3.5 billion USD). In which the total value of state’s shares at these enterprises is 20.808 trillion VND (915 million USD). With regard the equitized enterprises, which have not listed in the stock exchange market, the Ministry of Finance will review and propose appropriate measures to speed up the process.

In December, the government has successfully concluded selling of 343.66 million Saigon Beer Alcohol Beverage Corp (Sabeco) shares or 53.59% with value of nearly 4.8 billion USD, which is the largest Vietnamese brewer. This successful deal has eased off concern from investors and some administrative agencies, showing the positive responses from the market toward determination and effort of the government in respecting market principles and meeting expectation for a transparent business environment. 

Through previous divestment plans, the government is pursuing diversified ownerships in the economy. Eventually, the most important objectives are good service quality, brand development, steady stream of revenue and creating jobs.