The equitisation programme of Vietnamese State-owned enterprises (“SOE”) was implemented to restructure the economy and lure foreign strategic investors into the market. Whilst SOEs benefit from government support and easy access to capital many of them often operate with great inefficiency. The programme aims to replace the heavily State-oriented economy with one that is competitive and more efficient, and one that will improve the SOEs’ operational and technological capabilities and corporate governance. This client update explains the most significant aspects of the SOE equitisation process and provides you with the latest information.