The SCIC was handed over the Committee for Management of State Capital at Enterprises on November 12 (Photo: dangcongsan.vn)

Hanoi (VNA) – The State Capital Investment Corporation (SCIC) was transferred from the Ministry of Finance to the Committee for Management of State Capital at Enterprises (CMSC) on November 12.

Finance Minister Dinh Tien Dung said his ministry has performed the State ownership at the SCIC over the past years. 

The main functions of this corporation are receiving and performing the right to represent the owner of the state capital at firms; investing, doing business with and managing state capital in accordance with the market mechanism and as assigned by the State; and providing financial services. It has also helped reform the modes of state capital management.

The SCIC has become an effective tool of the Government to press ahead with equitizing and restructuring state capital. It is considered one of the leading corporations in divesting state capital from the firms in which the State doesn’t need to invest or hold a dominating stake, he noted.

As of August 31 this year, the SCIC had invested in 139 businesses, with nearly 20.37 trillion VND (866.3 million USD) in state capital compared to their total charter capital of almost 82.84 trillion VND.

CMSC Chairman Nguyen Hoang Anh said among the 19 enterprises owned by this committee, the SCIC plays a special role in managing, using, conserving and developing state capital at businesses.

He added the CMSC will continue coordinating with the Finance Ministry and relevant agencies to help the SCIC improve its operations.

On November 10, the Ministry of Industry and Trade also handed over six major enterprises under its wing to the CMSC.

The transfer of the State-owned enterprises (SOEs) to the CMSC is to realise Resolution 12-NQ/TW, issued at the fifth session of the 12th Party Central Committee in June 2017, on setting up a specialised body representing the owner of SOEs and of State capital at businesses. This agency is hoped to be more professional in and accountable for this work.

The removal of the function of representing the State ownership at enterprises from state administrative management agencies is necessary to create a fair business environment for all businesses, officials said, adding it is also meant to help state agencies focus on their management tasks that are becoming increasingly complex in current socio-economic development.

The CMSC, established by the Government, made debut in late September.

It will manage 19 State-owned economic groups and corporations. According to consolidated financial statements by December 31, 2017, the total value of the State equity at these 19 firms topped 1 quadrillion VND and the total asset value was 2.3 quadrillion VND.

The committee is responsible for managing the State capital at the enterprises where the State holds a 100 percent stake and at joint stock companies and limited liability companies with multiple members where the State has invested its capital in.-VNA