State investment fund needed to attract foreign indirect investment

Hanoi (VNS/VNA) - Vietnam needs to develop a state investment fund to attract foreign indirect investment as an additional source of capital for economic development, said Chairman of the State Capital Investment Corporation (SCIC) Nguyen Chi Thanh as quoted by Dau tu (Investment) Newspaper.

The study for the foundation of a state investment fund has recently resumed with the goal that the investment would become one of the two core business operations of SCIC.

The development strategy for 2030 and the restructuring project were being finalised before being submitted to the Prime Minister for approval, which would pave the way for the foundation of the state investment fund.

SCIC’s portfolio included 119 enterprises with a total State capital of 47.8 trillion VND out of more than 166 trillion VND chartered capital.

SCIC reported a revenue worth 10.69 trillion VND in 2022, equivalent to 151% of 2021 and 135% of the plan, and an after-tax profit of 6.8 trillion VND, nearly doubling the plan.

Thanh said the foundation of a state investment fund was necessary as the corporation aims to expand investment with the focus firstly on key sectors of the economy following the Government’s requirements.

The state investment fund would help attract indirect investment as an additional resource to promote economic development while the competition in attracting capital gets fiercer.

Thanh cited statistics that Vietnam attracted only 5.15 billion USD in foreign indirect investment in 2022, dropping by 25% against 2021.

This capital continued to fall strongly in January by 60.7% to 174 million USD.

“It is necessary to have a state investment fund to open up the inflow of indirect investment,” Thanh stressed, adding that SCIC should be developed into a State-owned investor to compete with foreign investment funds./.