VietNamNet Bridge - Having collected hundreds of trillions from divestments of large corporations, the State Capital Investment Corporation (SCIC)  in using money for re-investments. But the direction it will take in 2017 will be different.    


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By December 31, 2016, SCIC, the state-owned corporation which specializes in making investment in enterprises with the state’s capital, had portfolio investment in 146 businesses with book value of VND18.841 trillion and charter capital of VND88.108 trillion.

SCIC’s report showed that in 2016, it sold capital in 73 enterprises, collecting VND16.112 trillion for the state (the cost price was VND3.083 trillion).

With the result, SCIC could fulfill all the business targets set for 2016. 

The pre-tax profit in 2016 was VND18.629 trillion, twice as much as last year’s, while the post-tax profit was VND15.826 trillion and the ROE was 19.9 percent.

Vinamilk was the goose that lays golden eggs for SCIC as it paid the highest dividend in the history – 60 percent, which means the dividend of VND6,000 for every share.

On December 12, 2016, SCIC sold 5.4 percent of Vinamilk’s chartered capital to Thai F&N Group in an overall disinvestment plan. With the price of VND144,000 per share, SCIC got VND11.3 trillion from the deal.

SCIC’s report showed that in 2016, it sold capital in 73 enterprises, collecting VND16.112 trillion for the state (the cost price was VND3.083 trillion).

With high revenue and profit, SCIC has the right to retain a part of profits for the business development fund for re-investment. 

However, as Nguyen Duc Chi, chair of SCIC, admitted, over many years, SCIC has been mostly depositing money at banks and buying shares - the safest investment channels. However, they did not bring high profits.

SCIC’s 2015 finance report showed that its total assets were VND73.3 trillion, including the stockholder equity of VND35 trillion. Most of the assets SCIC manages, worth VND46 trillion were invested in bank deposits (VND25.3 trillion) and government bonds (VND20.5 trillion).

SCIC was named as one of the biggest government bond buyer in 2016.

Chi revealed that there will be big changes in ‘SCIC’s investment taste’ in 2017 as SCIC has decided to increase investment in healthcare projects, one of the hottest sectors in society.

Calling it a ‘breakthrough’, Chi said SCIC plans to build a large hospital in Thai Nguyen province under the mode of BOT, and may sell it after taking back the investment capital. 

SCIC has also discussed the building of K Hospital and improving healthcare services. It will also eye projects on infrastructure development and waste treatment. 

SCIC is implementing projects on building factories that make vaccine production and medicine to treat cancer. 

SCIC has negotiated with foreign partners on technology transfer. It is expected that Vietnam would be able to make 5-in-1 and 6-in-1 vaccines in 2017 on a large scale.


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Thanh Lich