SCIC pushed to transform into a national investment fund

SCIC pushed to transform into a national investment fund

The new model should give SCIC greater flexibility and efficiency in investment and capital management, while allowing it to operate according to market principles rather than being constrained by administrative management.

Since its establishment, SCIC’s revenue has increased by 93 times, after-tax profit 94 times, equity 19 times and total assets 14 times. — Photo baochinhphu.vn

The State Capital Investment Corporation (SCIC) has been instructed to accelerate its transformation into a national investment fund, as the Government seeks to mobilise State capital more effectively for infrastructure, technology, innovation and other strategic sectors.

Deputy Prime Minister Nguyễn Văn Thắng at the SCIC’s 20th anniversary on Sunday urged the State-owned holding company to quickly complete a new organisational and operating model to transform into a national investment fund.

The new model should give the SCIC greater flexibility and efficiency in investment and capital management, while allowing it to operate according to market principles rather than being constrained by administrative management, he said.

He pointed out that Việt Nam faces large capital needs for strategic infrastructure, science and technology, innovation, digital transformation and green transition projects, as well as other key industries.

The SCIC should prioritise mobilising and deploying capital for major national projects and programmes and new growth drivers, while strengthening its role as a channel for State capital to unlock resources and stimulate private investment, the deputy PM said.

He also urged the SCIC to expand cooperation with major investment funds and financial institutions in Việt Nam and abroad.

The transformation of the SCIC into a national investment fund is in line with the Politburo’s Resolution 79 on the State economy and the 14th Party Central Committee's Conclusion 18/KL-TW.

The SCIC’s development strategy for 2026-30 sets out a roadmap for its transformation.

For the rest of 2026 and through 2027, the firm is expected to focus on restructuring its organisation, developing its workforce and cooperating with relevant agencies to establish the legal framework and special mechanisms for a professional investment institution, while transforming its operations into a national investment fund.

From 2028 to 2030, the SCIC will build resources for capital investment with a focus on infrastructure and key projects in innovation, digital transformation, economic restructuring and sectors crucial for the economy.

SCIC Chairman Nguyễn Chí Thanh said the company would work with relevant agencies to finalise its restructuring proposal for submission to the Government.

Alongside direct investment, the SCIC will gradually develop funds and co-investment platforms, using its capital as seed funding to attract private capital, financial institutions and domestic and international investors to potential companies and projects, Thanh said.

Trần Đình Thiên, former director of the Vietnam Institute of Economics, said establishing a national investment fund was necessary to help Vệt Nam mobilise resources and respond to changing investment trends in the region.

SCIC statistics show that as of the end of June, it had accumulated pre-tax profit of over VNĐ121 trillion (US$4.7 billion) and contributed more than VNĐ111 trillion to the State budget. It also had equity of more than VNĐ70 trillion.

The SCIC’s average return on equity was 13.2 per cent over the 20-year period and 14 per cent over the past five years.

Since its establishment two decades ago, the SCIC’s revenue has increased by 93 times, after-tax profit 94 times, equity 19 times and total assets 14 times.

Its current portfolio of State capital holdings exceeds VNĐ203 trillion ($7.8 billion).

The SCIC had invested more than VNĐ64 trillion by the end of 2025, including in energy, finance, aviation and other key economic sectors.

The corporation has also divested capital from 1,070 companies, generating nearly VNĐ56 trillion in proceeds, or 4.1 times the book value of the investments.  

Bizhub