SCIC posts Q1 earnings of $39m
07-04-2015 13:22:20+07:00
SCIC posts Q1 earnings of $39m
The State Capital Investment Company (SCIC) said it successfully sold capital in 22 firms in the first quarter this year, earning VND844 billion (US$39.25 million).
Hoang Nguyen Hoc, deputy general director of SCIC, attributed the achievement to more flexible regulations related to divestment of State-owned enterprises (SOEs), which came into effect following a government Decision in 2013.
After the decision to boost the process of divestment of non-core businesses at several SOEs was taken, SCIC had sold capital at 159 firms, earning VND1.475 trillion ($68.6 million), 2.5 times more than the book value.
According to Hoc, 12 State-owned groups and corporations, such as the Viet Nam Posts and Communications Group, Viet Nam Maritime Corp, Sai Gon Trading Corp, and the Viet Nam National Coal Mineral Industries Group had also provided information to SCIC and suggested it buy their non-core investments in the banking and insurance sectors.
Under the current regulations, SCIC will buy stakes divested from banks by other SOEs, but will limit its purchases to 5 per cent or below of banks' chartered capital.
SCIC will make the purchase when SOEs fail to sell their stakes below par value or book value, or fail to sell shares to banks designated by the central bank. In case of a disagreement with SCIC, State-run groups and corporations can report to the Government and the Ministry of Finance to find a solution.
The SCIC, which was formed under a Government Decision in 2005 and is a Government shareholder in SOEs, is responsible for managing and investing State capital in various sectors, including financial services, banking, insurance, energy, manufacturing, and telecommunications. Transportation, consumer products and healthcare sectors also fall under its purview.
During the last nine years, SCIC has successfully sold capital in 746 enterprises, earning VND7.202 trillion ($334.97 million), 2.3 times more than the book value.Its total assets reached VND69 trillion ($3.2 billion), increasing 13 times, compared with the time of its establishment in 2005. Its equity was estimated to be over VND31 trillion ($1.44 billion), nine times over that in 2005.
