SCIC to continue divesting from SOEs in 2018
Some notable names such as Vinamilk, Traphaco, Duoc Hau Giang Pharmaceutical, or Military Bank are not included in 2018 divestment plan of State Capital Investment Corporation (SCIC).
Consequently, SCIC currently does not consider divesting state capital from leading state owned enterprises (SOEs), including Vietnam Dairy Products (Vinamilk) with 36% stakes, Traphaco (36%), Vietnam National Reinsurance Corporation (VINARE) (40%), and Bao Minh Insurance Corporation (51%), said SCIC 2017 report on enterprises' restructuring and innovation.
SCIC continues effortin in divestmenting from SOEs in 2018.
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However, SCIC plans to divest its shares in Tien Phong Plastic (37%), Binh Minh Plastic (30%), FPT (6%), Vinacontrol (30%), Vietnam Construction and Import - Export (Vinaconex) (58%), Domesco Medical Import -Export (35%).
Other SOEs subject for SCIC's divestment including: Vietnam Vegetable Oils Industry Corporation (Vocarimex) (36%), Thang Long Corporation (25%), Vietnam Television Tower (33%), Civil Engineering Construction 8 (Cienco 8) (18%), Civil Engineering Construction 5 (Cienco 5) (40%), Vietnam Medical Equipment Corporation (14%), Vietnam Plastic (Vinaplast) (66%).
SCIC's primary objectives are to represent the State's capital interests in enterprises and invest in key sectors and essential industries with a view to strengthening the dominant role of the state sector while respecting market rules.
In 2017, SCIC collected VND21.2 trillion (US$930 million) through divesting state funds from state-owned enterprises (SOEs), an increase of 19 times the initial investment, according to the company 2017 year-end report.
The company has successfully divested State stakes in 38 SOEs, including the sales of the entire State holding in 36 firms and partial divestments at 2 firms for a return of VND932 billion (US$409 million), 2.2 times the initial investment of VND424 billion (US$18.6 million).
Taking into account the first round of divesting 5.4% of the charter capital at Vietnam Diary Products (Vinamilk), SCIC has collected VND21.2 trillion (US$930 million) in total.
Since its establishment in 2006, SCIC has completed selling State stakes at 986 SOEs and transferring purchase rights at 19 SOEs for a return of VND28 trillion (US$1.2 billion), 3.5 times the initial investment of VND8 trillion (US$351 million).
As of December 2017, SCIC's portfolio consisted of 133 SOEs with the book value of State capital reaching VND19 trillion (US$834 million) of the total charter capital of VND90.6 trillion (US$3.9 billion). There were 22 companies in the A1 Group representing 63.55% of SCIC's portfolio, 9 in the A2 Group (1.22%), 32 in the B1 Group (26.16%), and 70 in the B2 Group (9.07%).
In 2018, SCIC will step up efforts to speed up the progress of taking over State ownership in SOEs and encourage relevant ministries and provinces/cities to transfer the ownership of State capital in SOEs back to SCIC, following the Prime Minister's request.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
- Samsung plans drastic investment increase in Vietnam over next three years