SCIC aims to disburse annual investment up to 16 trillion VND

The State Capital Investment Corporation (SCIC) has targeted disbursing investment of 13-16 trillion VND (561-690 million USD) annually to focus capital on key industries and sectors to promote economic growth.

12, Jun. 2020

Ho Chi Minh City
Ho Chi Minh City

HANOI, VNA - The State Capital Investment Corporation (SCIC) has targeted disbursing investment of 13-16 trillion VND (561-690 million USD) annually to focus capital on key industries and sectors to promote economic growth.

SCIC general director Nguyen Chi Thanh said this is the SCIC's investment strategy for 2020-25 and toward 2035 to complete its goal of becoming the Government’s strategic investor.

"At present, the SCIC is studying investing in some key State-owned projects that need capital such as Long Thanh airport, North-South expressway, Vietnam Airlines and PVGas and buying shares at some big banks and enterprises," Thanh told To quoc (Fatherland) newspaper.

Thanh said after the corporation basically completes its tasks of receiving and restructuring State-owned enterprises, it will focus on investment activities from 2020 to boost domestic and overseas investment.

The SCIC will seek investment opportunities in the domestic economy and local enterprises and disburse investment to key economic sectors that need State capital, he said.

The sectors also include high technology, digital economy, energy, high-tech agriculture, key infrastructure projects, finance and banking.

The corporation has targeted investing 82 trillion VND in those sectors until 2025.

In addition, with experience in investment and business over the past 14 years, the SCIC will seek investment from the private sector and foreign investors for enterprises it manages.

To reach the goals, Deputy Prime Minister Truong Hoa Binh has directed ministries and sectors to have solutions to remove difficulties of the SCIC in investment.

The SCIC has also proposed the State have specific mechanisms and policies instead of general regulations for State-owned enterprises, including regulations for appraising investment opportunities, making investment decisions, managing post-investment and evaluating investment efficiency.

The SCIC will continue to perfect systems of regulations and processes relating to investment management, Thanh said.

The SCIC has submitted to the Government to get approval for its development strategy for 2020-2025 and toward 2035.

After receiving approval, the corporation will review and complete the current legal system on the operation of a governmental investment fund.

Thanh said the SCIC has also proposed the Government approve charter capital of 50 trillion VND and a roadmap for increasing charter capital to promote investment activities, achieving its business goals.

The corporation will promote training and build mechanisms to attract experts in the management of investment funds and key industries. Those activities will support it to develop investment activities in the future.

Since its establishment in 2006, the SCIC has disbursed total investment of nearly 28.5 trillion VND in business and production at the enterprises. The corporation has gained efficiency in those investment activities to increase State capital. Its return on equity (ROE) in 2006-19 was 13 percent. - VNA