Vietnam: government to sell Vicem stakes

According to a local news source, the Ministry of Construction is set to divest its stakes in Vicem through an initial public offering in 4Q16. Cement producer Vicem currently control 34 per cent of the local market.

At the end of last year the company announced on its website that the share sale would pare the state holding to a minimum of 51 per cent. Investors from Thailand and Indonesia have expressed their interest in acquiring the stakes in Vicem. However, foreign investors will be cautious about buying into the company given the current oversupply in the domestic market.

According to Stoxplus Vicem has a cement output of 20Mta. Vietnam is forecast to see a surplus of 25Mt this year.