Le Tien Truong, Vinatex’s deputy general director, claimed the delay was a minor inconvenience and the initial public offering (IPO) would now take place within the second quarter as plans for the sell-off were awaiting official approval.

The state-run group has continuously failed to carry through on their IPO after initially missing their launch date in the fourth quarter of 2013 and first quarter of 2014.

Vinatex’s equitisation dates back to 2008, with the original plan delayed because of unfavourable market conditions.

After equitisation, the group will boast chartered capital of VND5 trillion ($238 million). Vinatex will sell a 49 per cent stake in the firm, with the state set to retain the remainder.

Vinatex is now one of Vietnam’s biggest state enterprises and has made a major contribution to the country’s export earnings. In 2013, the country’s textile and garment exports earnings were estimated at $20.4 billion, with exports to the US up 14 per cent, EU exports up 9 per cent, Japan up 20 per cent and South Korea 43 per cent.

It is predicted that 2014 will see a wave of foreign investors looking for opportunities in the textile and garment industry as Vietnam prepares for the Trans-Pacific Partnership (TPP).

The TPP will include 12 economies such as the US, Japan and Vietnam, and the textile and garment industry looks set to be one of the biggest winners. It is estimated that this industry will bring about $30 billion in export revenue to Vietnam by 2020 and $55 billion in 2030.

Vinatex’s equitisation is likely to see great interest given this context.

Vinatex will also accelerate its divestment from non-core businesses. To date, the group has withdrawn VND259 billion ($12.2 million), equal to 70 per cent of its total investment in non-core businesses.

Improved macro-economic factors and a reinvigorated stock market are likely to see other state firms make their bourse debuts later this year. Civil Engineering Construction Corporation (Cienco) 6 will offer over 28.7 million shares, or a 47.87 per cent stake on March 21 on the Ho Chi Minh Stock Exchange with a starting price of VND10,000 ($0.47) per share.

On the same day, Cienco 1 will also launch over 16 million shares on the Hanoi market at VND10,000 per share.

Cienco 5 will also hold an IPO for over 14.2 million shares, or a 32.38 per cent stake on March 24 at the same starting price. On the following day, Cienco 4 will launch its IPO, offering over 16.1 million shares at VND10,000 each.

On March 26, Transport Engineering Design Incorporation (TEDI) will offer 2.6 million shares, or a 20.8 per cent stake, at VND10,000 each on the Hanoi Stock Exchange.

On March 27, the Vietnam Motors Industry Corporation (Vinamotor) will also launch its IPO of 51 million shares, or a 51 per cent stake at HNX with the same starting price.

These corporations are among nine state-owned enterprises under the Ministry of Transport to complete their IPO within the first quarter. Another two corporations Cienco 8 and Vietnam Airlines will sell stakes in the second quarter as their equitisation plans await approval.