Despite a plan to equitize 30 state-owned enterprises (SOEs) during the 2023–2025 period, none have been equitized as of Q1 2025, raising concerns about the feasibility of Vietnam’s SOE reform targets, VN Economy is reporting. The plan had expected to raise VND 36.82 trillion (approx. US$1.47 billion) from equitizations.
Also of interest in the article was mention of the Ministry issuing documents in March to 23 SOEs requiring them to report on 2024 results and develop 2025 business plans, with minimum growth targets of 8 percent over 2024.
This puts Vietnam’s SOEs in a tricky situation. An 8 percent growth target is much higher than external GDP forecasts that put Vietnam’s likely GDP growth this year between 6 to 7 percent. (Though it does fit with a questionable target of 8 percent GDP growth set by the government at the start of the year).
Notably, SOEs are generally not considered to be particularly efficient at allocating capital, however, borrowing to invest may be the only way to reach these targets. This could, subsequently, have broader implications for the economy and the development of the country’s private sector which has also recently been touted as key to Vietnam’s economic development.
See also: Vietnam’s Private Sector Development Push: Unpacked