Finance minister: SCIC performs well

Thursday, Nov 19, 2015 08:10

FPT Software staff at work. FPT is mong 10 big SOEs which the Government directed the SCIC to select an appropriate time to sell the entire State capital. — Photo FPT News
HA NOI (Biz Hub) — The State Capital Investment Corporation (SCIC) has performed well in taking over State-owned enterprises and making efficient divestment in some enterprises, while making just a few new investments.

This was said by Minister of Finance Dinh Tien Dung in the National Assembly's question-and-answer session late on Tuesday.

"Investment activity made by SCIC has not been plentiful, but its functions of taking over State capital management and divestment have been exercised well," Dung said.

Viet Nam's sovereign investment fund, formed in 2005 to invest in State-owned enterprises (SOEs), has taken over State ownership rights in 980 enterprises with a total book value of nearly VND8.52 trillion (US$380.4 million).

In the past 10 years, it has sold State holdings in 811 enterprises, of which it has unloaded the entire stakes in 733 companies, reduced holdings in 78 firms and sold share purchase rights in nine enterprises.

It has collected over VND9.24 trillion ($412.5 million) during these sales, a rise of 240 per cent over the original cost, and earned a capital surplus of VND5.36 trillion ($239.3 million).

Under the Government's regulation, such capital surplus will be recorded in its business results. After paying tax and allocating a proportion to the designed investment development funds, the remaining profits will deposited into the State budget.

The corporation has also collected over VND76.56 trillion ($3.4 billion) for the Business Arrangement and Development Support Fund in which it represents the Government's management from 2011 to 2015, including VND13.76 trillion ($614.28 million) from SOE equitisation, VND37.7 trillion ($1.7 billion) from profits and dividends in invested enterprises, and VND12.93 trillion ($577.2 million) from interest income from cash deposits and government bonds.

Regarding the SCIC's investment activities, the minister said SCIC has invested around VND5 trillion ($223.2 million) in government bonds.

It has planned to invest VND157 billion ($7 million) in a cancer drug factory which has a total investment capital of VND525 billion ($23.4 million). The project is under investment research and SCIC has contributed VND77 billion ($3.4 million).

It has also pumped nearly VND1.67 trillion ($74.6 million) into the Song Da water plant No 2 project.

In October, the government directed the SCIC to select an appropriate time to sell the entire State capital in 10 big SOEs, including Viet Nam's biggest dairy producer Vinamilk, software giant FPT Corp and Bao Minh Insurance Corp.

This is in line with the government's policy to reduce involvement in economic sectors, where private businesses can operate and earmark resources for fields that require State control like national security, social welfare, and infrastructure and poverty reduction. — VNS

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