SCIC reviews its 2005 activities and rolls out 2016 plan

SCIC reviews its 2005 activities and rolls out 2016 plan

Hanoi, Janurary 14th 2016 – The State Capital Investment Corporation (SCIC) holds its 2015 Business and Communist Party Review and 2016 Plan Expansion Workshop.

The workshop attendants included Mr. Bui Van Cuong - a Party Central Committee Alternate Member, Secretary of the Central Business Bloc's Party Committee; Mr. Tran Van Hieu – Vice Minister of Finance and representatives of the leadership of units in the Government Office, Ministry of Finance and the Central Business Bloc's Party Committee.

From SCIC, attendants included Mr. Nguyen Duc Chi – Board Member; Mr. Lai Van Dao – SCIC’s Party Committee Secretary cum General Director; other Board members, SCIC’s Board of Management; Supervisors, managers of departments under SCIC and the SCIC Investment Company Limited.

SCIC’s 2015 business results

According to SCIC’s 2015 report, its business indicators all exceeded the plan by 36% and increased by 45% in comparison with 2014. Its pre-tax profits reached VND 8,414 billion, exceeding the plan by 36% and increasing by 45% in comparison with 2014. Its return on equity (ROE) was 25.6%, which increased by 1.6 times against its year plan. With such results, SCIC continues to qualify as an A-grade enterprise for the year 2015.

In 2015, SCIC’s state capital divestment at enterprises was fostered and obtained positive outcomes in comparison with 2014: it successfully divested state capital at 120 enterprises (whole divestment was done at 116 enterprises), earning VND 4,491 billion from the book value of VND 1,682 billion equaling a 2.7-time increase; obtained 176% against the plan in term of value (VND 2,808/1,600 billion). In comparison with 2014, 

the divestment figures of 2015 were 2.32 times as high in term of value and 1.6 times as large in term of number of enterprises.

By 31 December 2015, SCIC’s portfolio consisted of 197 enterprises where the book value of the state capital totals VND 20,020 billion, accounting for 23% of their charter capital and having a market value of approximately VND 95,697 billion.

As for new investments, during the past year, SCIC has focused its investment resources and obtained positive turns. SCIC’s total disbursement for investment in 2015 was over VND 8,000 billion; its financial investment was efficiently expanded; some certain large-scale projects were put into operation after a long time of preparation, such as: the No.29 Lieu Giai Project, the Television Tower Project with the Television of Vietnam (VTV); and some others being considered for investment like the cooperation initiative with the National Hospital of Pediatrics and the industry-scale vaccinations production project.

With its achievements during the past 10 years, SCIC has been honoredly awarded with the First-class Labor Medal by the President of Vietnam.

As for its Party activities, in 2015, the Party Executive Committee and the Managing Board of SCIC have closely followed the guidelines of the Government, the Ministry of Finance, the Central Business Bloc's Party Committee; seriously, thoroughly and timely grasped all the resolutions, instructions of the Central Party and the Central Business Bloc's Party Committee. Besides, the leadership of SCIC’s Party Executive Committee have fulfilled their previously set plan and effectively executed the programs relating to organization, inspection, promulgation, people’s mobilization. At the same time, they have reported to Central Business Bloc's Party Committee in a timely and comprehensive manner.

Speaking at the workshop, Vice Minister of Finance Tran Van Hieu highly appreciated SCIC’s achievements during the past year. In the context of the country’s eco-social development requirements, Vice Minister Hieu demanded SCIC to accelerate the take-over of state capital ownership representation rights at enterprises that have to be handed-over, especially those economic groups and state corporations under the Decision of the Prime Minister; to combine SCIC’s divestment with investment activities, selected promising and profitable projects; complete their governance system; and continue their capacity building efforts for their employees.

SCIC’s business directions for 2016

On the basis of 2015 reviews and 2016 forecasts, SCIC’s business directions for 2016 focus on the following main areas:

(i) Promote the take-over of state capital at enterprises, especially those economic groups and state corporations under the Decision of the Prime Minister which are to be handed-over to SCIC after privatization;

 (ii) Corporate Governance:Intensify corporate governance practices at enterprises where the state capital holds the majority; complete the restructuring and re-arrangement of one-member limited liabilities companies; enhance the quality of state 

capital ownership representatives; strengthen training programs for these representatives.

(iii) Divestment:Continue its restructuring initiatives and accelerate state capital divestment progress at enterprises that do not need to be kept by the Government, following the timeline and instructions of the Government and the Prime Minister.

(iv) Investment: Speed up the progress of key investment projects, execute the projects and investment opportunities being considered or ready for implementation: the Television Tower Project with the Television of Vietnam (VTV), the industry-scale vaccinations production project; boost financial investment activities: join the IPOs of economic groups and state corporations and privatized SOEs; continue to examine the purchase of non-core investments of economic groups and state corporations in some banks in accordance with Resolution 15 and Decision 51; research opportunities in project purchases and company mergers and acquisitions.

  SCIC’s 2016 business activities will be executed in the context of the economy’s positive changes; however, there exist a wide range of challenges besides the opportunities. SCIC believes that with the close attention and instructions of the Government, Prime Minister and related ministries, especially with the determination and efforts of its own management and employees, SCIC will continue to exceed its 2016 business plan and achieve positive and thorough outcomes in all aspects.

Featured at the workshop:

Mr. Bui Van Cuong - a Party Central Committee Alternate Member, Secretary of the Central Business Bloc's Party Committee, speaking at the workshop

Vice Minister of Finance Tran Van Hieu awards Certificates of Merit by the Prime Minister to SCIC’s prominent individuals