Viet Nam needs to develop a state investment fund to attract foreign indirect investment as an additional source of capital for economic development, said Chairman of the State Capital Investment Corporation (SCIC) Nguyen Chi Thanh as quoted by Dau tu (Investment) newspaper.

The study for the foundation of a state investment fund has recently resumed with the goal that the investment would become one of the two core business operations of SCIC.

The development strategy for 2030 and the restructuring project were being finalised before being submitted to the Prime Minister for approval, which would pave the way for the foundation of the state investment fund.

SCIC’s portfolio included 119 enterprises with a total State capital of VN47.8 trillion out of more than VND166 trillion chartered capital.

SCIC reported a revenue worth VND10.69 trillion in 2022, equivalent to 151 per cent of 2021 and 135 per cent of the plan, and an after-tax profit of VND6.8 trillion, nearly doubling the plan.

Thanh said the foundation of a state investment fund was necessary as the corporation aims to expand investment with the focus firstly on key sectors of the economy following the Government’s requirements.

The state investment fund would help attract indirect investment as an additional resource to promote economic development while the competition in attracting capital gets fiercer.

Thanh cited statistics that Viet Nam attracted only US$5.15 billion in foreign indirect investment in 2022, dropping by 25 per cent against 2021.

This capital continued to fall strongly in January by 60.7 per cent to $174 million.

“It is necessary to have a state investment fund to open up the inflow of indirect investment,” Thanh stressed, adding that SCIC should be developed into a State-owned investor to compete with foreign investment funds. — VNS