~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

Year :     [2007]      [2006]      [2005]      [2004]      [2003]      [2002]      [2001]      [2000]      [1999]      [1998]      [1997]

Qantas in Vietnam deal

HANOI - Vietnam's State Capital Investment Corp plans to sign an accord as soon as this month with Qantas on the sale of a stake in Pacific Airlines, Vietnam's second-biggest carrier. Pacific Airlines said in January it was in talks with Qantas. Pacific Airlines was previously controlled by Vietnam Airlines and then by the Ministry of Finance, before being transferred to State Capital Investment, controlled by the ministry.

"We are in the final stages of negotiations," Le Song Lai, deputy director-general of State Capital Investment, said in Hanoi. "We are going to sign an agreement with Qantas, hopefully by the end of this month or in the first week of April." Qantas said in January it was looking to buy a stake in an Asian carrier. "We are working closely to come to an agreement," Qantas chief financial officer Peter Gregg said. Under the accord, State Capital Investment would retain a majority stake, Mr Lai said. But he would not give percentage of shares or a possible price. "They are going to become our solid partner," he said.

Pacific Airlines has four leased planes and flies domestic routes, as well as to Taiwan. The move is part of Vietnamese Government plans to increase the pace of share sales in government-controlled companies. The Bank for Foreign Trade of Vietnam, Vietnam's second-biggest commercial bank, said last month it planned a share sale by August. "Bigger pieces of the pie are starting to become available," said Nigel Russell, a partner in the Ho Chi Minh City office of Australian law firm Allens Arthur Robinson. Mr Lai said the Government was willing to consider relinquishing majority stakes, except in industries defined as sensitive. These included aviation and banking, he said.

State Capital Investment, which started operations last year, will be the Vietnamese Government's sole ownership representative for companies that are being "equitised", according to its web site. State Capital Investment "is envisaged to be a conglomerate and proactive crucial player in Vietnamese financial markets", the company said on its web site.

By Nguyen Dieu Tu Uyen & Jason Folkmanis - Bloomberg - March 21, 2007.