SCIC reports profits 52 percent higher than target
The State Capital Investment Corporation (SCIC) reported after-tax profit of 8.25 trillion VND (356 million USD) in 2018, 52 percent higher than the annual target.
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| Divesting from Vinaconex was one of SCIC’s most successful deals last year (Photo: VNA) |
Its revenue was 12.58 trillion VND (541.3 million USD), equivalent to 159 percent of its target.
SCIC estimated it had paid 6.99 trillion VND (300.7 million USD) in corporate income tax in 2018, 54 percent higher than the target, and paid 2.18 trillion VND (93.8 million USD) directly to the Enterprise Arrangement and Development Support Fund.
SCIC played an important role in the restructuring of State-owned enterprises.
Founded in 2005, SCIC divested State capital out of 986 companies to collect nearly 37 trillion VND (1.6 billion USD), compared to the book value of 8.3 trillion (357 million USD).
In 2018 alone, SCIC earned nearly 7.78 trillion VND (334.7 million USD) from selling stakes at nine companies. SCIC’s two most successful deals last year were its sales of stakes of Binh Minh Plastics – the market price of which is now just half of the price at which SCIC sold – and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) at a price three times higher than SCIC originally paid.
As of the end of 2018, SCIC’s portfolio included 142 enterprises with a total State capital of 20.6 trillion VND (886.2 million USD), or 25 percent of the total charter capital.
In 2018, SCIC received transfers of State capital ownership representative rights at 14 enterprises with a total State capital of more than 4 trillion VND (172 million USD), including Vietnam National Textile and Garment Group (Vinatex) and Vietnam Seaproducts Joint Stock Corporation.
Up to now, SCIC held State capital ownership representative rights at 30 enterprises.
SCIC Deputy Director Nguyen Chi Thanh said the company would focus on seeking new investment opportunities in 2019 to increase the efficiency of State capital usage.
SCIC Chairman Nguyen Duc Chi said the company always kept a close watch on the use of State capital at enterprises to ensure efficiency.
Chi expects new opportunities for State capital investment as SCIC is one of 19 SOEs put under the management of the Commission for the Management of State Capital at Enterprises.
He added that SCIC is targeting growth of 7-8 percent in 2019.
