SCIC to promote Investment in Russia

SCIC to promote investment in Russia

From March 27-30, 2016, the delegation of State Capital Investment Corporation (SCIC) led by Mr. Lai Van Dao, SCIC’s CEO, paid a business visit to Russia Federation to promote investment in Russia.

Within the framework of the business trip, on March 28, 2016, the MOU signing ceremony between SCIC and JSC VTB Bank was organized in Moscow. Mr. Lai Van Dao, SCIC’s CEO and Mr. Riccardo Orcel, Senior Vice President of JSC VTB Bank, on behalf of each party, signed the MOU under the witness of representatives of leaders from the Department of SOE Reform-Vietnam Government’s Office, Vietnam’s State Securities Commission.

In accordance with this MOU, SCIC and VTB will collaborate and exchange the investment information and opportunities in both Vietnam and Russia and share experience in investment in both countries.

During this business trip, SCIC’s delegation had a meetings with Mr. Stanislav Voskresensky, Vice Minister of Economic Development of Russia Federation and Mr. Kirill Dmitriev, CEO of Russia Direct Investment Fund (RDIF) to discuss the investment opportunities in Russia and Vietnam, as well as ways to connect both sides’ partners/clients/subsidiary companies to identify and realize potential cooperation possibility between Russian and Vietnamese companies.

On March 29, SCIC hosted the seminar on investment opportunity and cooperation prospect between Vietnam and Russia. The seminar is aimed at connecting Russian investors and SCIC-linked companies, accelerating the state capital restructuring at companies and promoting the cooperation potential between Vietnamese and Russian companies.

Participants in the seminar comprise the Vietnamese Economic Counselor in Russia, representatives of leaders from the Ministry of Economic Development of Russia Federation, JSC VTB Bank, RDIF, representatives from several SCIC-linked companies like Bao Minh Insurance Corporation (BMI), Vietnam Reinsurance Corporation (Vinare), Vietnam Construction Export and Import Corporation (Vinaconex), Hau Giang Pharmaceutical JSC (DHG), Vietnam Electronics and Informatics Corporation (Viettronics)… and more than 30 Russian companies.

By hosting the seminar, SCIC effectively connected Russian companies and its linked companies to seek investment opportunities in both Russian and Vietnamese markets. The seminar itself was also a good networking event that introduced potential of exporting goods to Russian market for Vietnamese companies as well as opportunities of investment cooperation between Russian companies and companies under SCIC’s portfolio. 

SCIC’s CEO, Mr. Lai Van Dao, delivered a keynote on investment opportunities in Vietnam 

Mr. Lai Van Dao, SCIC’s CEO, said “Given Vietnam and Russia Federation’s long-term and fruitful cooperation relation in various fields so far, economic tights between two countries, consequently, have also been fostered, including trading and investment cooperation. We expect that our effort in this investment promotion will further brought the two countries’ cooperation to the new height, resulting in effective cooperation between Russian and Vietnamese companies for mutual benefit. In addition, the state capital restructuring will gain further progress to create effective resources for investment in key sectors of the economy”.

Incorporated in 2006, after more than 10 years of operation, SCIC has received the state ownership representative rights at nearly 1,000 companies with total book value of state capital of approximately 9,000 billion dongs.

As companies’ shareholder, SCIC involves in decision-making process to figure out companies’ business plan, introducing strategic partners for these companies and help them improve their performance and thus, creating the added value to the state capital and increasing the dividend income for the state budget.

By now, SCIC has successfully streamlined its portfolio via divestment of nearly 900 companies, adding more than 13,000 billion dongs to the state budget and gaining a profit of more than 8,000 billion dongs, which is nearly 2.5 times higher than the book value.

Via the state capital restructuring process, SCIC has increased the capital accumulation to create resource for investment in sectors in accordance with the instruction of the Government. SCIC’s investment mainly focuses in projects of significant scale in key sector with long-term prospect and efficiency. By the end of 2015, SCIC’s total investment has amounted at over 1 billion USD.

By 2020, SCIC is targeted at becoming the strategic investment entity of the Government and by 2030, SCIC is expected to become a regional sizable financial group that holds the controlling stake at key sectors/industries.