Gov’t approves Petrolimex equitization plan

Deputy Prime Minister Nguyen Sinh Hung has approved a plan to equitize Vietnam National Petroleum Corporation, or Petrolimex, which controls 60 percent of the country’s fuel distribution network.

As in most cases, the government will keep a controlling stake. It allowed Petrolimex to sell a 2.56 percent stake at an initial public offering, while the government will still own 75 percent in longer term.

The approval gave no details on the timing or possibility of foreign participation.

The firm's registered capital is VND10.7 trillion ($535 million).

In the past four years the privatization process has virtually ground to a halt as market conditions in Vietnam soured when the economy overheated.

The government had pledged to step it up again this year.

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