SCIC’s plan to arrange its enterprises gets approval

Thursday, Jul 13, 2017 09:00

SCIC will hasten capital divestments at State-owned enterprises from 2017-2020 — Photo

Deputy Prime Minister Vuong Dinh Hue early this week approved a plan to arrange enterprises under the State Capital Investment Corporation (SCIC) by 2020.

The plan aims to hasten State capital divestments, accelerate the restructuring progress of State-owned enterprises (SOEs) and improve the efficiency of State capital use at SOEs.

Under the plan, five enterprises must be privatised and reduce State holdings.

Wholly state-owned An Giang Stone Exploitation & Processing One Member Company Limited must be privatised in 2018 and reduced State stakes to 51 per cent after privatisation.

Trang Tien Trade and Investment Two Member Limited Liability Company, in which the State now holds a 90 per cent stake, will also be equitised. The State stake will reduce to 51 per cent in 2018.

The State must divest completely out of three companies after their privatisation: HPI Investment & Development Company, Statistical Form Print and Distribution One Member Company Limited and HCM City Statistical Print One Member Company Limited. These three companies, which are currently wholly owned by the State, must be privatised in 2017-18.

SCIC will maintain stakes of 100 per cent at SCIC Investment and 50.16 per cent at FTP Telecom.

Capital divestments will continue at 132 enterprises in 2017-20 period.

SCIC recently submitted two options for divesting its stake in the national dairy firm Vinamilk, in which the fund now holds 39 per cent.

In the first six months of this year, SCIC collected more than VND12.2 trillion (US$538.9 million) from selling stakes worth VND1.39 trillion in book value at 20 enterprises.

The fund posted a record pre-tax profit of VND19 trillion last year, nearly four times that of 2013. — VNS

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