The State Capital Investment Corporation on July 18 reported it had soldinterests it represented in 520 enterprises during the five years sinceits establishment for a total of 2.77 trillion VND (134.5 million USD) –twice the book value of the companies.
The corporation (SCIC),formed under Decision No 151/2005/QD-TTg dated 20 June 2005, isresponsible for managing and investing state capital in various sectorsincluding financial services, energy, manufacturing, telecommunications,transportation, consumer products and healthcare.
It hasoperated profitably, with total assets growing by eight fold and equitycapital by six fold since 2006 when it commenced operation. Last year,the SCIC posted a net profit of over 2.28 trillion VND (110.8 millionUSD), which was 20 times higher than that of 2006.
Total bookvalue of its portfolio of over 500 enterprises doubled in those fiveyears, reaching 15 trillion VND (728.2 million USD).
It expectsto earn a total of 8 trillion VND (388.3 million USD) by 2012 throughselling state capital in other enterprises, providing an importantadditional capital source for the SCIC to increase investment in keysectors and large projects.
The SCIC has invested activelythrough a number of channels. Its total investment has reached more than6 trillion VND(291.3 million USD) in various forms including stocks,bonds, capital contribution to promising enterprises and investment inlarge energy, infrastructure and high technology projects.
Inaddition, it has contributed to the restructuring of State-ownedenterprises. Most of the companies handed over to the SCIC achieved highgrowth after the transfer. Revenue of those companies rose over 61percent on average and some companies attained high return on equityratio (ROE), such as dairy producer Vinamilk with over 40 percent,software producer FPT Corp with over 70 percent and Hau GiangPharmaceutical Co with over 30 percent.
Minister of Finance VuVan Ninh addressed the SCIC's 5th anniversary on July 18: "The SCIC hasfulfilled its role as the Government's investor over the past fiveyears, gradually unifying the representation of the State ownership inState enterprises, and raising state capital for investment in the areaswhich the State needs to hold and dominate."
Ninh believed thecorporation will improve its operational efficiency in the future bypromoting the sale of state capital in enterprises that are no longerretained by the State in order to concentrate investment resources inthe sectors that are important to the country's economic development.
LaiVan Dao, SCIC's general director, also said the corporation plans toreduce its portfolio to about 100 large enterprises by 2015 and increaseits investment to 40-50 trillion VND (1.94-2.42 billion USD) during2011-15./.
The corporation (SCIC),formed under Decision No 151/2005/QD-TTg dated 20 June 2005, isresponsible for managing and investing state capital in various sectorsincluding financial services, energy, manufacturing, telecommunications,transportation, consumer products and healthcare.
It hasoperated profitably, with total assets growing by eight fold and equitycapital by six fold since 2006 when it commenced operation. Last year,the SCIC posted a net profit of over 2.28 trillion VND (110.8 millionUSD), which was 20 times higher than that of 2006.
Total bookvalue of its portfolio of over 500 enterprises doubled in those fiveyears, reaching 15 trillion VND (728.2 million USD).
It expectsto earn a total of 8 trillion VND (388.3 million USD) by 2012 throughselling state capital in other enterprises, providing an importantadditional capital source for the SCIC to increase investment in keysectors and large projects.
The SCIC has invested activelythrough a number of channels. Its total investment has reached more than6 trillion VND(291.3 million USD) in various forms including stocks,bonds, capital contribution to promising enterprises and investment inlarge energy, infrastructure and high technology projects.
Inaddition, it has contributed to the restructuring of State-ownedenterprises. Most of the companies handed over to the SCIC achieved highgrowth after the transfer. Revenue of those companies rose over 61percent on average and some companies attained high return on equityratio (ROE), such as dairy producer Vinamilk with over 40 percent,software producer FPT Corp with over 70 percent and Hau GiangPharmaceutical Co with over 30 percent.
Minister of Finance VuVan Ninh addressed the SCIC's 5th anniversary on July 18: "The SCIC hasfulfilled its role as the Government's investor over the past fiveyears, gradually unifying the representation of the State ownership inState enterprises, and raising state capital for investment in the areaswhich the State needs to hold and dominate."
Ninh believed thecorporation will improve its operational efficiency in the future bypromoting the sale of state capital in enterprises that are no longerretained by the State in order to concentrate investment resources inthe sectors that are important to the country's economic development.
LaiVan Dao, SCIC's general director, also said the corporation plans toreduce its portfolio to about 100 large enterprises by 2015 and increaseits investment to 40-50 trillion VND (1.94-2.42 billion USD) during2011-15./.
