State capital investment corporation set to be strategic investor

09:35 | 27/10/2015 Economy

The State Capital Investment Corporation (SCIC) targets to become a government strategic investor with total assets of US$ 22.5 billion by 2020, as heard at a ceremony marking its 10th founding anniversary in Hanoi on October 19.

State capital investment corporation set to be strategic investor

NA Chairman Nguyen Sinh Hung pins the Labour Order, first class, on SCIC's traditional flag (Photo: VGP)

It was awarded with the Labour Order, first class, on the occasion.

National Assembly Chairman Nguyen Sinh Hung and Deputy Prime Minister Vu Van Ninh attended the ceremony.

By 2030, it is set to develop into a regional-scale financial corporation that manages a combined US$ 46 billion.

Looking back at the past 10 years, the SCIC exercised its State ownership representation rights in around 1,000 enterprises worth more than VND 8.7 trillion (US$ 395.4 million), including six equitised corporations. At the PM’s request, an additional 20 State-owned corporations and groups will transfer their ownership rights to the SCIC from 2015-2016.

The return on equity ratio averages 15-17%, bringing a total after-tax profit of more than VND 30 trillion (US$1.36 billion).

Compared to 2005, its turnover has soared 65-fold, total assets are up 14 times, State budget contribution is up 41 times and after-tax profits have increased 61.5 times.

The SCIC has offloaded State capital to pull in VND 5.36 trillion (US$ 243.6 million) and its portfolio now comprises 230 firms with a booking value of VND 17 trillion (US$772 million) and market value of VND 78 trillion (US$ 3.54 billion).

Its total equity is currently valued at nearly VND 35 trillion (US$ 1.59 billion).

It has also taken the lead in equitisation with 90% of its single-member limited liability companies going public.

In his speech, Deputy PM Ninh asked the SCIC to continue improving its operating model, speeding up pestment in several companies and performing its role as a shareholder in several large-scale and efficient firms./.

Source: VNA/NDO