Foreign investors eye Vietnam’s seaports Foreign investors have shown more interest in seaports following a decision by the in Prime Minister to reduce the state’s stake in the ports. A senior executive of Vinalines admitted that the number of shares it had sold through its IPO (initial public offering) had been “unsatisfactory”. Only 7.5 percent of Quang Ninh Port’s shares have been sold, and only 10 percent of Nha Trang Port’s shares could be sold at its IPO. Meanwhile, Hai Phong Port sold less than 6 percent of the volume of shares offered. The buyers of the shares were mostly workers of the companies and their partners. Observers noted that investors were not interested in seaport shares because the state still holds a high proportion of shares, 75 percent, in port development firms. However, they said the situation would change as the Prime Minister has agreed to reduce the state’s ownership ratio. The state will hold controlling stakes in seven important ports, including Hai Phong, Quang Ninh, Da Nang, Sai Gon, Can Tho, Nghe Tinh and Cam Ranh. As for Hai Phong, Quang Ninh, Da Nang and Sai Gon ports, the state will hold 51 percent of shares instead of 75 percent as initially planned. For Can Tho, Nghe Tinh and Cam Ranh, the state’s ownership ratio will be 49 percent instead of 75 percent. The state will not have a stake in other ports. Le Anh Son, general director of Vinalines, said that many investors had bought shares of five major seaports that Vinalines was offering. “Investors have registered to buy 90 percent of Da Nang Port’s shares, 100 percent of Quang Ninh’s and 49 percent of Hai Phong’s,” he said. “A lack of sales will not happen again,” he said. Unprofitable ports attract investors VOI, an investment joint stock company, has registered to buy 19.68 percent of the state’s shares in Hai Phong Port, which held its first shareholder meeting in early June. Businesses in Northern Europe have also expressed interest in shipping firms and port investment projects. Sigmund Stromme, chair of NorCham, which represents Northern European businesses, has proposed that the state allow foreign investors to hold 70-100 percent of shares in shipping firms and port development projects. He said ports in Vietnam are used by mostly foreign shipping firms. And as the users, they are in a position to invest in and develop the ports. Under commitments Vietnam made when it became a member of the World Trade Organization (WTO), the ceiling on foreign-ownership in logistics and waterway-transport services has been removed. An official of the Ministry of Transport said unprofitable ports in advantageous locations had also attracted foreign investors. SSA Marine has asked the ministry to sell all of Vinalines’ shares in the Cai Lan International Container Port (CICT) to foreign investors. Chi Mai, VietNamNet Bridge