PM ratifies SCIC restructuring plan

Illustration photo

The plan aims to speed up State capital divestments, accelerate the restructuring progress of State-owned enterprises (SOEs) and improve the efficiency of State capital use at SOEs. 

Under the plan, five enterprises must be privatized and reduce State holdings.

Wholly state-owned An Giang Stone Exploitation & Processing One Member Company Limited must be privatized in 2018 and reduced State stakes to 51% after privatisation.

Tran Tien Trade and Investment Two Member Limited Liability Company, in which the State now holds a 90% stake, will also be equitised. The State stake will reduce to 51% in 2018.

The State must divest completely  of three companies after their privatisation: HPI Investment & Development Company, Statistical Form Print and Distribution One Member Company Limited and HCM City Statistical Print One Member Company Limited. These three companies, which are currently wholly owned by the State, must be privatized in 2017-18.

SCIC will maintain stakes of 100 % at SCIC Investment and 50.16% at FTP Telecom.

Capital divestments will continue at 132 enterprises in the 2017-20 period.

SCIC has recently submitted two options for divesting its stake in the national dairy firm Vinamilk, in which the fund now holds 39%.

In the first six months of this year, SCIC collected more than VND12.2 trillion (US$538.9 million) from selling stakes worth VND1.39 trillion in book value at 20 enterprises.

The fund posted a record pre-tax profit of VND19 trillion last year, nearly four times that of 2013./. 

By Kim Loan