SCIC posts $844m pre-tax profit

HÀ NỘI — The State Capital Investment Corporation (SCIC) has declared record pre-tax profit of around VNĐ19 trillion (US$844 million) in 2016, which is 3.9 times the profit earned in 2013.

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 VNĐ5.32 trillion in 2013 to VNĐ22 trillion in 2016. Its contribution to the State budget increased 7.4 times from VNĐ2.2 trillion in 2013 to VNĐ16.5 trillion in 2016. Its revenue from selling its stakes in Vinamilk was more than VNĐ10.8 trillion.

Between the period 2014 and 2016, SCIC poured VNĐ13.4 trillion into investment, including VNĐ6.05 trillion in bonds, VNĐ1.86 trillion in shares and VNĐ631 billion in newly established firms.

In addition to these, the corporation also invested VNĐ1 trillion in Thái Nguyên 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 VNĐ1.2 trillion, including a capital contribution of VNĐ18 billion in Việt Nam INCO JSC for No 29 Liễu Giai project, buying VNĐ500 billion bonds of VPBank and VNĐ100 billion bonds of ACB.

SCIC also increased its investment of VNĐ4.5 billion in Tràng Tiền 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 VNĐ11.2 trillion, with pre-tax profit of VNĐ8.3 trillion and after-tax profit of VNĐ7.3 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 per cent), Traphaco (36 per cent), DHG Pharmaceutical Joint Stock and Company (43 per cent), as well as Sa Giang Import-Export Company (50 per cent), Tiền Phong Plastic Joint Stock Company (37 per cent), Bình Minh Plastic Joint Stock Company (30 per cent), Bảo Việt Group (3 per cent) and MBBank (10 per cent).

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/QĐ-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.

Đặng Quyết Tiến, 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. — VNS