SCIC evaluates State capital divestment

Friday, Aug 10, 2018 08:06

SCIC’s contribution to the state budget, including the payment of corporate income tax and post-tax profit, was VND1.5 trillion. — Photo

Given the stock market’s recent lethargy, the State Capital Investment Corporation (SCIC) is assessing market demand to consider choosing the most efficient capital divestment options at State-owned enterprises (SOEs).

This statement was made by SCIC deputy general director Nguyen Chi Thanh at a press conference held on Wednesday to review the performance of SCIC - the representative of state-owned capital at SOEs, in the first six months of this year and set out tasks for the second half.

Thanh said that in the first half of this year, SCIC’s revenue from dividends reached VND1.2 trillion (US$51.5 million), equal to 49 per cent of the yearly plan. Financial income reached VND715 billion, equal to 55 per cent of the yearly plan.

Revenue from the sale of State capital, including the share sale at Binh Minh Plastic JSC, was VND2.69 trillion, accounting for nearly 48 per cent of the country’s total revenue of VND5.59 trillion.

SCIC’s contribution to the State budget, including the payment of corporate income tax and after-tax profit, was VND1.5 trillion.

Thanh said that the SCIC successfully auctioned 24.1 million shares at Binh Minh Plastics JSC with a value of VND96,500 per share, earning VND2.3 trillion.

SCIC chairman Nguyen Duc Chi said that after 12 years of operation, SCIC had accumulated experience in managing State capital in accordance with the law.

By restructuring businesses, SCIC helped them improve their operational efficiency and expertise in selling capital. The process of selling State capital has been built by SCIC with transparency and efficiency assurance, with a wide network of domestic and international investors, Chi said.

However, SCIC admitted that the transfer of State enterprise ownership to the SCIC failed to meet expectations.

Shifting enterprise ownership from ministries and provincial People’s Committees to the SCIC is an important solution to restructuring State-owned enterprises (SOEs), but the change requires more drastic measures to hasten the process.

For the 2017-20 period, Prime Minister Nguyen Xuan Phuc has required six ministries and 16 localities to transfer State enterprise ownership at 62 enterprises to SCIC, with total State capital valued at over VND11.2 trillion

But Chi said until the end of June 2018, SCIC had received the State ownership representatives of just 25 out of the above 62 enterprises.

He said SCIC had six working teams actively working with ministries and localities, but the body has no authority to force the ministries and localities to transfer ownership. — VNS

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