SCIC hosted successfully the conference ‘’ Discussing solutions for promoting divestment activities of SCIC 2018’’.

To serve the purpose of discussion, solving difficulties, promoting divestment process of SCIC in 2018, on 11th October 2018 at Hanoi, the State Capital Investment Corporation organized the conference ‘’ Exchanging solutions to promote divestment activities of SCIC in 2018’’.

Attending the conference, there were representatives of enterprise innovation department – Government Office, enterprise finance department- Ministry of Finance; Commission for the management of state capital at enterprises; state securities commission OF VIETNAM; Hanoi stock Exchange; Ho Chi Minh stock Exchange; economic security agency(A84), the economic & traffic criminal investigation police agency (C46), The Ministry of Public Security and representatives of more than 20 securities companies, appraisal companies.

2018 has been the year of various important amendment to the SCIC’s divestment regulations at enterprises, with the introduction of 2 important documents, namely revised Decree No.32/2018/NĐ-CP dated 08 March 2018 of the Government which amended some articles of Decree 91/2015/ND-CP dated 13 October 2015 of the Government regarding investing state capital at enterprises; state capital & asset management at enterprises and revised Circular No 59/2018/TT-BTC dated 16 July 2018 of the Ministry of Finance which amended some articles of Circular No 219/2015/ TT-BTC dated 31 December 2015 regarding investing state capital at enterprises.

This is the legal framework which directly influence, leading to changes in fundamentals of divestment activities of SCIC. However, there are some issues remaining not fully stated:

-                      Which are the legal regulations to be applied in selling OTC shares at enterprises?

-                      The enterprise valuation and initial share price of SCIC at enterprises are obliged to regulations of Decree No 32//2018/ND-CP, Circular No 59/2018/TT-BTC relating to determining rented land use rights valuation ( renting paid annually) and value of culture & history. However, these values are not stated clearly at Standards of valuation or/and already included in the group’’ intangible assets not specified’’, regardless that rented land use rights valuation & values of culture and history cannot be separated in specific value)

-                      Which method would be used to figure out the valuation of difference in the rented land value (annual renting payment)? the difference in discounted renting cash flow from future back to presence or purely adding up all differences of all years?

At the conference, the delegates attending discussed with SCIC, focusing on mentioned issues, as well as current difficulties of stock companies, valuation companies when processing consulting capital selling contracts for SCIC; proposals of stock companies, valuation companies to improve stages of the capital selling; at the same time, exchanging some issues emerging in the process of collaborating among investment departments or subsidiaries with stock companies, valuation companies.

Since the beginning to October 2018, SCIC divested capital successfully at 8 enterprises (including 6 fully capital divested enterprises and 2 partly capital divested enterprises).

In General, the stages of capital divestment in 2018 has been slow compared to the plan, however, the reasons come from the objective circumstances, particularly, and capital divestment activities encountered difficulties due to the practise of some regulations of state capital divestment mechanism at Decree No 32/2018/ND-CP, the fluctuating stock exchange for listed enterprises.