Friday, August 18, 2017 - 17:46:58

SCIC posts 837 million USD pre-tax profit in 2016

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The State Capital Investment Corporation (SCIC) has declared record pre-tax profit of around 19 trillion VND (837 million USD) in 2016, which is 3.9 times the profit earned in 2013 (Photo: cafef.vn)

Hanoi (VNA) - The State Capital Investment Corporation (SCIC) has declared record pre-tax profit of around 19 trillion VND (some 837 million USD) in 2016, which is 3.9 times higher than 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 5.32 trillion VND in 2013 to 22 trillion VND in 2016. Its contribution to the State budget increased 7.4 times from 2.2 trillion VND in 2013 to 16.5 trillion VND in 2016. Its revenue from selling its stakes in Vinamilk was more than 10.8 trillion VND.

Between the period 2014 and 2016, SCIC poured 13.4 trillion VND into investment, including 6.05 trillion VND in bonds, 1.86 trillion VND in shares and 631 billion VND in newly established firms.

In addition to these, the corporation also invested 1 trillion VND 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 1.2 trillion VND, including a capital contribution of 18 billion VND in Vietnam INCO JSC for No 29 Lieu Giai project, buying 500 billion VND bonds of VPBank and 100 billion VND bonds of ACB.

SCIC also increased its investment of 4.5 billion VND 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 11.2 trillion VND, with pre-tax profit of 8.3 trillion VND and after-tax profit of 7.3 trillion VND.

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 percent), Traphaco (36 percent), DHG Pharmaceutical Joint Stock and Company (43 percent), as well as Sa Giang Import-Export Company (50 percent), Tien Phong Plastic Joint Stock Company (37 percent), Binh Minh Plastic Joint Stock Company (30 percent), Bao Viet Group (3 percent) and MBBank (10 percent).

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.-VNA
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