SCIC to continue divestment process in 2016
SCIC to continue divestment process in 2016
The State Capital Investment Corporation (SCIC) divested State capital from 120 businesses in 2015, earning VND4.49 trillion (US$200.17 million) from a book value of VND1.68 trillion ($74.9 million).
This was a 2.7-time increase, achieving 176 per cent of the target.
As of December 31, 2015, SCIC's portfolio comprised 197 enterprises, with the State capital's book value being more than VND20 trillion ($891.7 million), accounting for 23 per cent of the charter capital and a market value of nearly VND95.7 trillion ($4.26 billion).
As for new investments, SCIC focused its investment resources and obtained positive turns last year. SCIC's total investment disbursement in 2015 was more than VND8 trillion ($356.7 million).
Certain large-scale projects became operational after a long period of preparation, including VTV Tower, a joint venture between Vietnam Television and SCIC, and some others being considered for investment such as the co-operation initiative with the National Hospital of Pediatrics and the industry-scale vaccinations production project.
Directions for 2016
The corporation will continue its restructuring initiatives and accelerate divestment from enterprises that do not need to be kept by the Government, following the timeline and instructions of the Government and the Prime Minister.
The corporation will also increase investments such as by participating in initial public offerings of economic groups, State-owned corporations and enterprises. It will continue to examine the purchase of non-score investments of economic groups and State corporations in some banks and research opportunities in projects purchases and company mergers and acquisitions.
An SCIC report released recently showed that the corporation's business indicators in 2015 increased by 36 per cent, compared with the plan and 45 per cent higher than that of 2014.
Its pre-tax profits reached more than VND8.4 trillion ($374.5 million), exceeding the plan by 36 per cent, recording a 46 per cent increase over 2014. Its return on equity was 25.6 per cent, which was a 1.6–time increase against its yearly plan.
SCIC, established in 2005, was seen as a bold measure by the Government during the height of the economic and SOE reforms that aimed to enhance the efficiency of State capital utilisation.
SCIC's primary objectives are to represent state capital interests in enterprises and to invest in key sectors and essential industries with a view to strengthening the dominant role of the state sector, while respecting market rules. It is currently managing many enterprises that are operating in various sectors, such as financial services, energy, manufacturing and telecommunications, besides transportation, consumer products, healthcare and information technology.
