SCIC posts VND844 billion pre-tax profit

In its report on the business results in the period between 2013 and 2016, SCIC said its growth had increased continuously.

Its total revenue rose by 4.1 times from VND5.32 trillion in 2013 to VND22 trillion in 2016. Its contribution to the State budget increased 7.4 times from VND2.2 trillion in 2013 to VND16.5 trillion in 2016. Its revenue from selling its stakes in Vinamilk was more than VND10.8 trillion.

Between the period 2014 and 2016, SCIC poured VND13.4 trillion into investment, including VND6.05 trillion in bonds, VND1.86 trillion in shares and VND631 billion in newly established firms.

In addition to these, the corporation also invested VND1 trillion in Thai Nguyen Iron and Steel Joint Stock Corporation (TISCO) following the Government’s direction. However, SCIC divested from the project.

In 2016 alone, the corporation disbursed nearly VND1.2 trillion, including a capital contribution of VND18 billion in Vietnam INCO JSC for No 29 Lieu Giai project, buying VND500 billion bonds of VPBank and VND100 billion bonds of ACB.

SCIC also increased its investment of VND4.5 billion in Trang Tien Plaza Co. Ltd. It has poured money into some other projects, such as industrial scale vaccine production project, cancer drug plant and hospitals.

In 2017, it planned to sell capital at 107 businesses in various sectors.

The corporation said the selling of State capital at businesses has been continuously promoted, thus bringing in the positive results. Last year, it successfully sold capital at both big scale firms and those with complicated and prolonged shortcomings.

Its business plan submitted to the Ministry of Finance was approved this year. Accordingly, SCIC planned to reduce half of its revenue target this year to VND11.2 trillion, with pre-tax profit of VND8.3 trillion and after-tax profit of VND7.3 trillion.

SCIC is scheduled to implement privatisation of five more enterprises by 2020, while continuing to hold capital in three others, selling capital in 137 firms and completing the dissolving of three companies. 

Among the 137 firms in which SCIC planned to sell State capital, there were big companies such as Vinamilk (39%), Traphaco (36%), DHG Pharmaceutical Joint Stock and Company (43%), as well as Sa Giang Import-Export Company (50%), Tien Phong Plastic Joint Stock Company (37%), Binh Minh Plastic Joint Stock Company (30%), Bao Viet Group (3%) and MBBank (10%).

SCIC said it would face difficulties in meeting the targets, though they were lower than that of last year. The main reason was that the list of State enterprises under Decision No 58/2016/QD-TTg that could be equitised has not been approved.

It said the enterprises management has been ensured and more effective. However, some firms have seen shortcomings and prolonged complication that had slowed the divestment process.

Dang Quyet Tien, Deputy Director of the MoF’s Corporate Finance Department, also said 19 firms had approved their equitisation process by the middle of June, slower than last year.