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SCIC unveils first phase of 73 enterprise divestment plan for 2023
The State Capital Investment Corporation (SCIC) has recently announced its first phase of divestments for 2023, which includes 73 enterprises with some high-profile companies in the stock exchange.
The companies that can catch investors’ eyes include Binh Minh Plastic JSC (BMP), Vietnam Seaproducts Joint Stock Corporation (SEA), LICOGI Corporation - JSC (LIC), Pha Lai Thermal Power JSC (PPC), Hai Phong Thermal Power SJC (HND) and Quang Ninh Thermal Power JSC (QTP).
The Government’s investment arm has successfully completed divestments in four enterprises so far, which include Quang Ngai Road Management and Construction JSC (29 per cent of capital), II Quang Binh Road Repair and General Construction JSC (53 per cent), Quang Binh Road Maintenance and Complex Construction JSC (65 per cent) and Inland Waterways Management Maintenance JSC N09 (51 per cent).
However, SCIC's list is currently lacking the so-called "blockbusters" that are highly sought-after by both domestic and foreign investors, such as FPT Corporation (FPT), Vinamilk (VNM), Tien Phong Plastic JSC (NTP) and brewer Sabeco (SAB). These are also the companies that offer high dividend rates to SCIC.
Since 2018, the equitisation of state-owned enterprises (SOEs) through divestment of state capital on the stock exchange has been at a standstill, which has made the stock market unattractive to new investors, particularly those from abroad.
SCIC’s chairman Nguyen Chi Thanh has suggested the need for the state investment fund to facilitate indirect investment, and SCIC to be transformed into a state-owned investor that can compete with foreign investment funds.
As of December 31, 2022, SCIC's portfolio comprises 119 enterprises, with a state capital of VND47.8 trillion (US$2 billion) out of a total charter capital of VND166 trillion.
It reported revenue of VND10.7 trillion in 2022, up 51 per cent on-year and surpassing the annual target by 35 per cent. In 2023, SCIC has set lower targets of nearly VND 6.7 trillion in revenue and VND2.9 trillion in after-tax profit.
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