Morethan 90 percent of Nha Trang Port Company's stakes went unsold afterits IPO in May, while Quang Ninh Port Company and Hai Phong Port Companysold only six to seven percent each. Vietnam National Shipping Lines(Vinalines)' IPO also witnessed disappointing results.

Expertsblamed the failures on the fact that the State still holds majoritystakes (75 percent) in the equitised companies, making them unappealingto investors, particularly foreign partners.

However, theMinistry of Transport has ordered Vinalines to build a plan to reduceState capital invested in these firms. All seaports in the country willbe equitised. The State will only retain majority stakes in seven bigports: Hai Phong, Quang Ninh, Da Nang, Sai Gon, Can Tho, Nghe Tinh andCam Ranh.

Regarding the four key ports (Hai Phong, Quang Ninh, DaNang and Sai Gon), the State will only hold 51 percent of total capitalinstead of 75 percent. For the other three ports, the State holdingwill be reduced to 49 percent.

The State will also sell all of its capital invested in port companies.

LeAnh Son, General Director of Vinalines, said many investors wereapproaching the company and showing interest in buying stakes in thefive large port operators for which Vinalines plans to launch IPOs bythe end of the year.

"Some investors registered to buy up to 90percent of Da Nang Port Company, or even the entire offering of QuangNinh Port Company, and 49 percent of Hai Phong Port Company," Son wasquoted as saying in Giao thong van tai (Transport) newspaper.

Many investors were willing to buy shares at competitive market prices, so there would be no more disappointing IPOs, he added.

VietnamOman Investments Joint Stock Company, a joint venture between the Stateof Oman and the State Capital Investment Corporation of Vietnam,recently sought to buy nearly 20 percent of State capital in Hai PhongPort Company.

Previously Sigmund Stromme, Chairman of the NordicBusiness Association, suggested the Vietnamese Government allow foreigninvestors to buy 70-100 percent of stakes in shipping companies and portinvestment projects. As 𓂃foreign shipping companies were the mainclients of Vietnamese ports, they would want to d๊irect the course ofport management.