SCIC had a meeting with JCAP Mission of World Bank (WB) and International Finance Corporation (IFC)

Hanoi – November 14th, 2018, Mr. Nguyen Chi Thanh, SCIC’s Deputy General Director, had a meeting with the delegation of JCAP Mission of WB and IFC. JCAP Mission is a program included in the technical assistance project in capital market sector of WB to support the development of the capital market in Vietnam. JCAP Mission aims to expand the support, continue fulfilling the commitment with Vietnam Ministry of Finance, and contribute to the development of non-government bond market in the context in which Vietnam is looking to mobilize long-term intermediary financial instruments to reduce the reliance on the banking industry to serve long-term financial needs. Representatives of WB and IFC also joint with JCAP Mission and this team will seek out channels to assess the capital market situation in Vietnam and identify which actions need to be taken to mobilize more effective instruments in the capital market. As a joint working group of the WB and IFC, JCAP Mission has the advisory function (e.g. advising governments to change policies on capital mobilization, if needed) and transacting function.

At the meeting, Mr. Joic Chiquier, Senior Advisor of World Bank, said that during the delegation's 10-day business trip, he and his colleagues had many meetings with representatives of ministries, enterprises, including SOEs, and private enterprises, in order to make preliminary assessments of Vietnam's capital market, the need to mobilize capital with different instruments other than credits from commercial banks and accessibility to these tools. For SCIC, Chiquier also wants to understand SCIC's demand for capital mobilization as SCIC is currently managing a portfolio of more than 100 companies and planning to implement an number of large projects in the near future.

In addition, due to experience in advising on amending SCIC's divestiture regulation within the framework of VN-ABP2 project in the period of 2017-2018, Mr. Ketut Kusuma, Senior Financial Sector Specialist of WB and also a member of JCAP Mission, said that JCAP Mission might consider supporting SCIC during the divestment process in order to take advantage of the capital market for this process and to ensure benefits of SCIC and divestee companies.

On behalf of SCIC, Mr. Nguyen Chi Thanh appreciated the cooperation and support of the WB and IFC for SCIC since its establishment as well as JCAP Mission’s effort to spend time to exchange information with SCIC. Sharing with the delegation of JCAP Mission, Mr. Nguyen Chi Thanh said that as a government investment arm, SCIC has two main functions: (i) managing state capital at enterprises after equitization, restructuring and/or divesting state capital from enterprises in order to preserve and develop state capital, and (ii) implementing investment projects. SCIC and its portfolio companies have so far not had the need to mobilize capital through debt instruments in the international capital market. However, in the future, when SCIC and its portfolio companies implement large scale projects, SCIC might consider this option. In addition, as the only enterprise providing financial and advisory services among 19 state corporations/groups which are currently under the management of the Commission for the Management of State Capital in Enterprises (CMSC), SCIC is always willing to support if JCAP Mission works with the Commission and needs a local partner to develop and provide products related to the capital market for corporations under the management of CMSC