The State Capital Investment Corporation on July 18 reported it had sold interests it represented in 520 enterprises during the five years since its establishment for a total of 2.77 trillion VND (134.5 million USD) – twice the book value of the companies.

The corporation (SCIC), formed under Decision No 151/2005/QD-TTg dated 20 June 2005, is responsible for managing and investing state capital in various sectors including financial services, energy, manufacturing, telecommunications, transportation, consumer products and healthcare.

It has operated profitably, with total assets growing by eight fold and equity capital by six fold since 2006 when it commenced operation. Last year, the SCIC posted a net profit of over 2.28 trillion VND (110.8 million USD), which was 20 times higher than that of 2006.

Total book value of its portfolio of over 500 enterprises doubled in those five years, reaching 15 trillion VND (728.2 million USD).

It expects to earn a total of 8 trillion VND (388.3 million USD) by 2012 through selling state capital in other enterprises, providing an important additional capital source for the SCIC to increase investment in key sectors and large projects.

The SCIC has invested actively through a number of channels. Its total investment has reached more than 6 trillion VND(291.3 million USD) in various forms including stocks, bonds, capital contribution to promising enterprises and investment in large energy, infrastructure and high technology projects.

In addition, it has contributed to the restructuring of State-owned enterprises. Most of the companies handed over to the SCIC achieved high growth after the transfer. Revenue of those companies rose over 61 percent on average and some companies attained high return on equity ratio (ROE), such as dairy producer Vinamilk with over 40 percent, software producer FPT Corp with over 70 percent and Hau Giang Pharmaceutical Co with over 30 percent.

Minister of Finance Vu Van Ninh addressed the SCIC's 5th anniversary on July 18: "The SCIC has fulfilled its role as the Government's investor over the past five years, gradually unifying the representation of the State ownership in State enterprises, and raising state capital for investment in the areas which the State needs to hold and dominate."

Ninh believed the corporation will improve its operational efficiency in the future by promoting the sale of state capital in enterprises that are no longer retained by the State in order to concentrate investment resources in the sectors that are important to the country's economic development.

Lai Van Dao, SCIC's general director, also said the corporation plans to reduce its portfolio to about 100 large enterprises by 2015 and increase its investment to 40-50 trillion VND (1.94-2.42 billion USD) during 2011-15./.