SCIC holds on to long-term investment in key businesses

Dec 6th at 10:24

06-12-2013 10:24:54+07:00

The State Capital Investment Corporation (SCIC) will retain its shares in FPT Telecom, Vinamilk (VNM), Hau Giang Pharmaceutical (DHG) and Viet Nam National Reinsurance Corp (VNR) as part of its long-term investment strategy.

This was stated in a restructuring plan approved by Prime Minister Nguyen Tan Dung on Monday with the aim of distributing State capital into key industries more reasonably and enhancing financial efficiency in enterprises until 2015.

Several local news websites calculated that with VNM, DHG and VNR share prices increasing sharply this year, SCIC had earned over VND22 trillion (US$1.05 billion) in profits.

They estimated that VNM had made the company VND1.4 trillion ($66.67 million) in dividends in 2013, up 40 per cent over 2012.

FPT Telecom, of which SCIC owns more than half the equity, has helped to earn the State corporation VND200-250 billion ($9.5-11.9 million) per year since its initial investment.

SCIC will continue to hold controlling stakes in 26 companies dealing in roads, waterways, tourism, minerals, trade, investment and services; and withdraw capital from 376 firms, including Viet Nam Construction and Import-Export Corp (Vinaconex), FPT Group, Bao Viet Holdings, Binh Minh Plastic and Tien Phong Plastic.

It is expected to raise equity to VND50 trillion ($2.38 billion) by 2015, according to the plan.

vietnamnews