SCIC exchanges experience in state capital management with partners in Hungary and Czech Republic

From July 17 to July 21, 2017, a delegation from State Capital Investment Corporation (SCIC) led by Mr. Hoang Nguyen Hoc, SCIC’s Standing Deputy General Director, paid a business trip to Hungary and Czech Republic to exchange experience in state capital management.

In Hungary, the delegation had a meeting with the Hungarian National Asset Management Inc. (HNAM) - one of the key arms of Hungary’s Ministry of National Development. HNAM is exercising the ownership rights towards state assets with total value of 17,000HUF (approximately 61 billion USD), accounting for 50% of Hungary’s GDP (according to HNAM’s disclosure at

As a transitional economy like Vietnam, Hungary is one of the most successful countries in Eastern Europe, especially in SOE restructuring through various methods of commercialization and privatization. In the meeting, representatives from HNAM and SCIC’s delegation shared issues related the model of HNAM and its role in state asset management.

HNAM’s mandates include developing sound strategies based on its responsibility in reasonable asset and portfolio management, using advanced methods in asset management to improve the profitability of SOE, maintain and uphold the national property in compliance with the government’s policy and legal regulations. Assets under HNAM’s management include SOEs, real estate property and other intangible assets. Currently, HNAM is exercising the supervisory rights at more than 500 companies and the ownership rights at more than 450 companies out of the said 500 ones. Some significant companies under HNAM’s portfolio are MVN Hungary, a Hungarian leading power company; Szerencsejáték, a leading company in lottery; Volánbusz Zrt.- a leading transportation companies and a number of other big companies in rubbish and disposal processing.

HNAM’s representatives and SCIC’s delegation in the meeting at HNAM’s Head Office in Budapest, Hungary

In Czech Republic, SCIC’s delegation had a meeting with Mr. Ondřej Závods, Vice Minister of Finance, Section State Assets and representatives of State Asset Management Department (Dept. 62).

Unlike other countries, Czech Republic does not have state asset management compay/fund. The state asset management in Czech Republic is undertaken in accordance with the Parliament and Government’s regulations. In details, Company Code stipulates the responsibilities and rights of the Ministry of Finance and other related ministries. These stipulations facilitate SOE to join and meet the standards and principles of the EU market. The Ministry of Finance manages such significant companies that operate in key sectors like power. However, some other ministries may also manage SOEs that operate in those sectors that are under the administration of those ministries, namely Ministry of Agriculture, Ministry of Transportation.

In the field of SOE management and supervision, Ministry of Finance and other line ministries assign personnel to join the management team of SOEs. The assigned personnel will have the full power and responsibility regarding the performance of SOEs. The state can adjust the assigned personnel if necessary. SOE’s BOD is selected by shareholders as per the legal regulation.

Fully privatized companies will not be subject to the supervision of the government; partially privatized companies will not be directly supervised by the government but by the SOE management board and be subject to the Company Code.

Representatives of Czech Republic’s Ministry of Finance and State Asset Management Department (Dept 62) and SCIC’s delegation in the meeting at MOF in Prague, Czech Republic

Sharing at the meetings, Mr. Hoang Nguyen Hoc, SCIC’s Standing Deputy General Director, said that experienced related to the state asset management  and other related issues would be a valued source of reference for SCIC during its striving for an optimal model of state asset management in Vietnam. Mr. Hoc also shared that as a national asset management arm, SCIC hopes that HNAM and Czech Republic’s Ministry of Finance will keep close contact with SCIC for frequent updates of each party and identification of potential collaboration opportunities among parties as well as the member companies under the portfolio of these parties to boost the bilateral cooperation and investment between Vietnam and the two countries.