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SCIC lacks the experience for large projects, investors say
The Vietnam Association of Financial Investors said the government’s investment arm should not be allowed to invest in three large Ho Chi Minh City projects because it doesn’t have enough experience.
In a proposal sent to the city government and the Ministry of Finance, the non-profit association said SCIC, or the State Capital Investment Corp., is a newly established investment arm whose staff are mainly government officials without business administrative backgrounds.
Moreover, it would be easier to generate funds for the projects if the city chose a reputable alliance of foreign and local investors, the association said.
SCIC last month sought approval from the city government to invest in the North-South Highway and Hiep Phuoc Port Urban Area, the Vietnam Economic Times reported. The corporation had earlier obtained permission to build a US$3 billion financial and exhibition center in the new urban area of Thu Thiem.
The association said SCIC should focus on projects that businesses are unable or unwilling to do, or on helping small- and medium-sized enterprises.
Instead of competing with other investors, the government’s investment arm should build hospitals and public transport projects to make full use of its funds, said the proposal.
SCIC has a chartered capital of VND15 trillion ($830 million), with state capital accounting for 46.63 percent. It has invested in 754 businesses since its establishment in 2006.
The corporation in July said it would invest in major energy and infrastructure construction projects using the money it earns from selling off shares in 272 businesses this year.
Thanh Nien, TBKTSG
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