SCIC promotes investment in South Korea

SCIC promotes investment in South Korea

On 10 December 2015 in Seoul, South Korea, the State Capital Investment Corporation (SCIC) held a seminar on “Vietnam – Destination for investment and M&A opportunities”.

The purpose of the seminar is to connect South Korean investors with SCICenterprises, promote the restructure of state capital in enterprises, and therefore enhance cooperation opportunities between Vietnamese and foreign enterprises.

Attending the seminar were the Ambassador of Vietnam to South Korea, representatives from the Korea Chamber of Commerce and Industry (KCCI), leaders of SCIC, the State Securities Commission (SSC), Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange (HOSE), together with SCIC’s state ownership representatives in a number of its enterprises such as Bao Minh Insurance Corporation (BMI), Vietnam National Reinsurance Corporation (Vinare), Vietnam construction and import – export Joint stock Corporation (Vinaconex), Vietnam Electronics and Informatics Corporation (Viettronics), FPT Telecom Joint Stock Company (FPT Telecom), Tien Phong Plastic Joint Stock Company... and nearly 100 South Korean enterprises.

At the seminar, SCIC introduced to Korean investors investment opportunitiesat SCIC’s portfolio companies, to examine potential opportunities for cooperation between Korean investors and Vietnamese enterprises. At the same time, the seminar was also a forum for the state capital representatives in enterprises to expand partnerships, to seek business cooperation opportunities as well as learning and sharing experiences in investment and project development with Korean partners.

          “Vietnam and South Korea have established our diplomatic relation for over 20 years. In 2016, when the Free Trade Agreement between Vietnam and Korea (VKFTA) is valid, it is predicted that the FDI inflows from Korean will increase sharply. SCIC currently manages the portfolio of 230 companies. Therefore, this conference will open up potential opportunities for cooperation between Korean investors and Vietnam’s enterprises. With the promotion of investment in Korea, I believe, in the future, the restructuring activities of SCIC’s company will be more effectively implemented to quickly restructure state capital, focusing investment resources in key sectors of the economy”, stated Mr. Lai Van Dao, SCIC’s CEO.

         By now, after 10 years of operation, SCIC has taken over the state ownership at nearly 1,000 enterprises with the total state capital of over VND 8,700 billion. So far, SCIC have gained a surplus of over VND 5,360 billion from divestment. SCIC’s current portfolio consists of about 230 enterprises with the total book value of approximately VND 17,000 billion and market value of nearly VND 78,000 billion. SCIC’s existing owner’s equity is around VND 35,000 billion.

The objective for SCIC’s development until 2020 is to become the Government’s strategic investor and financial corporation with total assets of USD 22,5 billion; and by 2030, a regional financial investor, a channel for the state to invest and maintain the control in key sectors of the industry with total assets of USD 46 billion.