The State Capital Investment Corporation (SCIC) was set up in 2005 following the Prime Minister’s Decision.

As an organization specializing in the management and investment of State capital, SCIC was established in the context of economic reform process, particularly business restructuring in order to increase the efficiency of using State capital. The Corporation is responsible for the disbursement of State capital for business operations and is entitled to allocate funds for important projects in line with market principles and laws.

SCIC’s members and associated businesses operate in various fields of national economy, such as finance, energy, industry, telecommunications, construction, transportation, consumer goods, health care and information technology.

Speaking on the fringe of a recent seminar on restructuring business and the role of financial organizations, Hoang Nguyen Hoc, SCIC Deputy General Director, attributed shortcomings in business administration problems that emerge during the pre-equitisation process, mostly relating to business management. He stressed that it is essential to restructure the share-holding process to increase capital investment while improving management skills for investors so that they can help enterprises run their business operations effectively.

According to Mr Hoc, to manage State capital in these companies effectively, SCIC should become a real shareholder which can perform its rights and obligations in line with the Enterprise Law and the companies’ regulations. When enterprises succeed in running their business, State capital in these enterprises will increase, he added.

Mr Hoc: The biggest difficulty is that State capital is invested in many places. It is necessary to sell out stocks in certain companies where the State does not need to hold.  As the Prime Minister said, the money collected will then be allocated to major highly-efficient projects.

Reporter: In your opinion, is it necessary to have special mechanisms for SCIC in this regard?

Mr Hoc: We are building mechanisms in accordance with current laws. We are trying to gain original capital in an effective and rapid manner by promoting the bidding of State-owned shares based on prices of listed shares on the stock market.

Reporter: What is the impact of the slow speed of the equitisation process on SCIC’s activities?

Mr Hoc: SCIC is considered a support tool of the Government in the reform and restructure of State-owned enterprises (SOEs). The sale of State-owned shares in equitised businesses is the next step of the equitisation process. This will help mobilize sources for large and effective projects.

Reporter: At present, what has SCIC done to welcome economic sectors and foreign funds who want to contribute capital to the Corporation?

Mr Hoc: We’ve worked with many financial organizations inside and outside the country. We’ve set up relations with about 100 foreign financial organizations who have much experience in business administration. We’ve also invited many organizations to help businesses operating with State-owned shares to build a development strategy and facilitate business restructuring.

Reporter: Thank you.