VietNamNet Bridge - The government may allow state owned economic groups and general corporations to sell stakes at the prices below the book value as a solution to accelerate the state owned enterprise (SOE) restructuring process. "We are considering the solutions for SOEs to withdraw the state's capital from other enterprises by selling stakes at below the face value," said Deputy Minister of Finance Vu Thi Mai, answering the inquiries about the SOE equitization performance at the Vietnam Business Forum held in early December. "The government would release necessary documents to elaborate on the issue so as to help speed up the process of SOEs withdrawing capital from non-core business fields. The report by the Ministry of Finance (MOF) to the National Assembly in November 2013 showed that the process has been going very slowly. SOEs, which injected capital in securities companies, investment funds, banks, insurance and real estate firms, still cannot withdraw from the business … [Read more...] about Government considers selling state’s capital at a loss
Selling stocks at a loss
The U.S. government cut its stake in American International Group Inc to about 21.5 percent on Monday, making a profit of US$12.4 billion on the insurer's crisis-era bailout and bringing the unpopular rescue closer to its end. The Treasury Department sold $18 billion worth of the insurer's shares at $32.50 apiece, in what could yet be the largest ever secondary offering in U.S. history. The underwriters have the option to buy another $2.7 billion worth of AIG shares, which they can exercise in the next 30 days. … [Read more...] about Treasury sells big chunk of AIG stock at a profit
The current economic difficulties and the sharp fall in the number of guests have forced a lot of big bosses to sell hotels to gather strength on their important projects. After seven years of developing Holiday View Hotel, in April, Vinaconex ITC offered to sell the hotel at the starting price of 70 billion dong only. This is the only 3-star hotel in the well-known Cat Ba tourist site with the total area of 8500 square meters, 120 bedrooms and convention rooms. The documents provided by the hotel developer to potential investors show that Holiday View has been operating well with the average occupancy rate of over 75 percent. General Director of Vinaconex ITC Tran Ngoc Quang declined to say about the reason behind the decision to sell Holiday View. However, investors seemed to be keep indifferent to the investment opportunity. Until June, Vinaconex ITC still had not wrapped up the deal because of the lack of interest of investors. Meanwhile, Quang said Vinaconex ITC would change … [Read more...] about Big bosses sell hotels at a loss to get money back
At a time when most consumers are practicing thrift, consumer goods manufacturers have had no choice but to see their sales constantly dip, despite their willingness to sell products at a loss. Meanwhile, the skyrocketing lending interest rates only deepen the sorrow of many local electronics, processed food, and beverage producers, as well as confectioners. Lan, an attendant at the HM electronics center on Ho Chi Minh City’s Hoang Van Thu Street, said the center has around 300 unsold air-conditioners which were imported earlier this year to prepare for the coming high demand of summer. “But customers have mainly come to just look and then leave,” said Lan. Dinh Anh Huan, director of dienmay.com, said that while electronics businesses traditionally hiked prices by 10 – 18 percent at this time of the year, they have now had to offer promotional programs, or even sell at a loss due to low demand. “Even the food commodities suffer low consumption if they … [Read more...] about When selling at a loss doesn’t even help
Sugar companies repeatedly complain about their difficulties every year. However, they always finish fiscal years with great successes. “You keep complaining…” In early 2010, sugar companies called for the support from the State, because their 140,000 tons of sugar was left unsold. However, at the meeting which gathered the representatives of the Ministries of Industry and Trade, Agriculture and Rural Development (MARD), and the representatives of sugar companies and retail chains, MARD’s Deputy Minister Diep Kinh Tan said frankly: “You keep complaining, but I know each of sugar companies made a profit of 50 billion dong on average in 2009.” By 2009, Vietnam had had 38 sugar companies, while the average output of every sugar refinery is 25,000 tons. Therefore, the sum of 50 billion dong in profit was not a small figure. In 2010, sugar companies also made fat profits. In early 2011, the sugar sale went slowly, leading to the inventory volume of … [Read more...] about Sugar companies make profit or take loss?