Vietnam to Transition 20 State-Owned Enterprises to Privatization

Vietnam is undergoing a significant shift in its economic landscape with the recent announcement that 20 state-owned enterprises (SOEs) will be equitized, according to a newly-issued government decree. Among these are major players like Petrovietnam, Vietnam Electricity (EVN), Viettel, and Agribank, marking a historic moment in the country’s push towards market-oriented reforms.

This move reflects an ambitious plan that also includes key enterprises like the chemical group Vinachem, Vietnam Rubber Group (VRG), and Vietnam Airlines (HVN). The decree is broadly aimed at improving the efficiency and competitiveness of these enterprises and enhancing their operational capacities as they shift from being wholly state-owned to joint-stock companies.

Details of the Equitization Process

Under Government’s Decree No. 57/2026/NĐ-CP, effective from February 13, 2026, the equitization of entirely state-owned enterprises aims to not only boost their performance but also position them favorably in the domestic and international markets. Specifically, enterprises classified as Level-I will be transitioned into joint-stock companies, encompassing parent companies within existing state-owned economic groups and independent limited liability companies.

Investment Opportunities in Equitized SOEs

The decree outlines eligibility criteria for potential investors eager to participate in this transformation. Three primary groups will be allowed to purchase shares in these enterprises: domestic investors, foreign investors, and strategic investors who demonstrate a commitment to the enterprise’s long-term success. The latter group must adhere to designated conditions set out in the decree, promoting serious investment over speculative buying.

Importantly, certain individuals and organizations are restricted from acquiring shares. This includes members of the Steering Committee for the Equitization of SOEs and associated financial intermediaries who have a vested interest in the equitization process. By establishing these restrictions, the government aims to maintain transparency and fairness throughout the process.

The Economic Signal

The issuance of Decree 57 is not just a procedural change; it’s a bold economic signal aimed at invigorating investments and enhancing the stock market dynamics in Vietnam. By accelerating the equitization process, the government hopes to unleash new opportunities for investment in well-established enterprises while also increasing the availability of quality assets in the market.

Future Vision for State Enterprises

This initiative aligns with the broader vision as outlined in the Politburo’s January 2026 Resolution 79. This resolution aims for Vietnam to significantly ramp up its state economic sector, with aspirations for 50 state-owned enterprises to rank among Southeast Asia’s 500 largest companies, and for at least one to break into the global top 500 by 2030. It highlights the important role that modernized state enterprises will play in global production and supply chains.

Central to this endeavor is the goal of fostering robust, technologically advanced state-owned enterprises that not only compete locally but also stand out on international platforms. By nurturing these businesses, Vietnam aims to spearhead an era of economic integration that will benefit the country as a whole.