Vietnam’s investment arm SCIC to sell state stakes in 108 firms
Taking into account the potential sale of 108 SOEs in the list, SCIC’s revenue in 2019 could reach VND21.6 trillion (US$934.55 million).
The Vietnamese government’s investment arm State Capital Investment Corporation (SCIC) has announced the list of 108 state-owned enterprises (SOEs) subject to divestment in 2019, Vietnam Finance reported.
On the list are some major corporations including Bao Minh Corporation, where SCIC owns a 51% stake, FPT (6%), Bao Viet Group (3%), Quang Ninh Thermal Power (11%), LICOGI (41%), Vietnam Vegetable Oil Industry Corporation – Vocarimex (36%), and Hai Phong Thermal Power (9%), among others.
Notably, Vinamilk is also included in the list but required specific instruction from the prime minister.
Being tasked with restructuring state-owned enterprises (SOEs), since its establishment, SCIC has divested state capital from a total of 986 companies for proceeds of VND37 trillion (US$1.59 billion), 4.4 times the book value of VND8.3 trillion (US$357.94 million).
In 2018, SCIC successfully divested its stakes in Binh Minh Plastic and Vinaconex, raising VND2.3 trillion (US$101.2 million) and VND7.36 trillion (US$317.45 million), respectively.
Overall, SCIC withdrew state capital from nine SOEs in 2018, which resulted in net earnings of over VND5.7 trillion (US$245.76 million).
As of December 31, 2018, SCIC’s portfolio included a large portfolio of over 142 enterprises which are operating in various sectors, such as financial service, energy, manufacturing, telecommunications, transportation, among others, with state capital of VND20.6 trillion (US$887.94 million) out of the combined charter capital of VND84.17 trillion (US$3.62 billion).
In 2019, SCIC targeted revenue of VND6.5 trillion (US$281.24 million) and pre-tax profit of VND5.02 trillion (US$217.2 million).
Taking into account the potential sale of 108 SOEs in the list, SCIC’s revenue in 2019 could reach VND21.6 trillion (US$934.55 million).
SCIC posted its revenue in 2018 of VND12.7 trillion (US$549.48 million), up 72% year-on-year.
A major part of SCIC revenue came from the liquidations of investments worth VND7.79 trillion (US$337 million), accounting for 61% of total and equivalent to an 8-fold increase against 2017, followed by dividends of VND3.33 trillion (US$144 million) or 26% of the total, down 34% year-on-year.
Last November, the Ministry of Finance handed over SCIC to the Commission for the Management of State Capital (CMSC), dubbed as “super committee”.
SCIC was among 19 leading state-run groups and corporations that ought to be handed over to the committee, holding a combined capital of VND1,000 trillion (US$43.02 billion) and assets of over VND2,300 trillion (US$98.96 billion).
At the launching ceremony of the commission on September 30, 2018, Prime Minister Nguyen Xuan Phuc said the CMSC is aimed to improve efficiency of state-owned enterprises (SOEs), in turn providing greater competitiveness for the economy.
Illustrative photo.
|
Notably, Vinamilk is also included in the list but required specific instruction from the prime minister.
Being tasked with restructuring state-owned enterprises (SOEs), since its establishment, SCIC has divested state capital from a total of 986 companies for proceeds of VND37 trillion (US$1.59 billion), 4.4 times the book value of VND8.3 trillion (US$357.94 million).
In 2018, SCIC successfully divested its stakes in Binh Minh Plastic and Vinaconex, raising VND2.3 trillion (US$101.2 million) and VND7.36 trillion (US$317.45 million), respectively.
Overall, SCIC withdrew state capital from nine SOEs in 2018, which resulted in net earnings of over VND5.7 trillion (US$245.76 million).
As of December 31, 2018, SCIC’s portfolio included a large portfolio of over 142 enterprises which are operating in various sectors, such as financial service, energy, manufacturing, telecommunications, transportation, among others, with state capital of VND20.6 trillion (US$887.94 million) out of the combined charter capital of VND84.17 trillion (US$3.62 billion).
In 2019, SCIC targeted revenue of VND6.5 trillion (US$281.24 million) and pre-tax profit of VND5.02 trillion (US$217.2 million).
Taking into account the potential sale of 108 SOEs in the list, SCIC’s revenue in 2019 could reach VND21.6 trillion (US$934.55 million).
SCIC posted its revenue in 2018 of VND12.7 trillion (US$549.48 million), up 72% year-on-year.
A major part of SCIC revenue came from the liquidations of investments worth VND7.79 trillion (US$337 million), accounting for 61% of total and equivalent to an 8-fold increase against 2017, followed by dividends of VND3.33 trillion (US$144 million) or 26% of the total, down 34% year-on-year.
Last November, the Ministry of Finance handed over SCIC to the Commission for the Management of State Capital (CMSC), dubbed as “super committee”.
SCIC was among 19 leading state-run groups and corporations that ought to be handed over to the committee, holding a combined capital of VND1,000 trillion (US$43.02 billion) and assets of over VND2,300 trillion (US$98.96 billion).
At the launching ceremony of the commission on September 30, 2018, Prime Minister Nguyen Xuan Phuc said the CMSC is aimed to improve efficiency of state-owned enterprises (SOEs), in turn providing greater competitiveness for the economy.
17:29, 2024/07/23
State-owned corporations set to pilot offshore wind power projects
Private and foreign investors are currently not being considered for pilot projects due to unresolved legal and security issues.
06:12, 2024/07/17
AIIB ready to fund Hanoi’s urban railway projects
Hanoi expects the AIIB to assist with planning, implementation methods, and financing strategies to rapidly deploy metro projects.
15:33, 2024/07/02
S.Korea’s industrial conglomerates to expand investment activities in Vietnam
Prime Minister Pham Minh Chinh welcomed the proposals, which are consistent with Vietnam’s green growth strategy.
11:29, 2024/05/08
Intel boosts Vietnam’s semiconductor workforce for ambitious goals
Kim Huat Ooi, Vice President of Manufacturing, Supply Chain and Operations and General Manager of Intel Products Vietnam, spoke to The Hanoi Times about Vietnam's semiconductor ambitions and Intel's contribution to making the country a global manufacturing and R&D hub.
16:32, 2024/04/04
Vietnam among top investment destinations for SEA investors
The top three neighboring countries whose companies are eager to expand their operations in Vietnam are Thailand (66%), Malaysia (58%), and Indonesia (55%).
15:21, 2024/03/08
Vietnam looks to support FDI firms as global minimum tax looms
The move is aimed at attracting foreign capital from future investors and protecting existing businesses.
- Factors unlocking Vietnam’s potential in FDI attraction: HSBC
- Opportunity at hand: Leveraging global minimum tax for FDI attraction
- Vietnam: Leading destination for sustainable investment
- Vietnam targets to draw investment in hi-tech industries: Prime Minister
- Vietnam could see strong US investment following upgraded bilateral status: HSBC
- High value investment takes Vietnam to the next level of qualitative growth: HSBC