Memorandum of Understanding to be signed between SCIC and RDIF

Memorandum of Understanding to be signed between SCIC and RDIF

May 16, 2016 - on the occasion of official visit of the Prime Minister, H.E. Nguyen Xuan Phuc, in Russia Federation, the State Capital Investment Corporation (SCIC) signed a Memorandum of Understanding (MoU) with Russian Direct Investment Fund (RDIF) to reinforce the economic cooperation between two entities.

Mr. Nguyen Duc Chi, SCIC’s Chairman, and Mr. Kirill Dmitriev, RDIF’s CEO, on behalves of two institutions, signed the MoU under the witness of Vietnam’s Prime Minister, H.E. Nguyen Xuan Phuc, and Russia’s Prime Minister, H.E. Dmitry Medvedev.

As part of the comprehensive plan to strengthen the strategic relationship with Russian partners, this MoU is aimed at fostering the bilateral investment activities between Vietnam and Russia via direct or indirect investment in projects for both sides’ benefit as well as that of each party’s portfolio companies; assisting Vietnam’s companies to penetrate and expand their exposure in Russia market.

Given the signed MoU, two entities will exchange information, consider business and investment opportunities in both Russia and Vietnam, accelerate bilateral trading activities, consider investing in companies and projects related to Vietnam and Russia.

Mr. Nguyen Duc Chi, SCIC’s Chairman, said “RDIF and SCIC are playing the same roles as the government's investment arms of both countries with important mandates to the economy. Thus, for SCIC, strengthening the relationship with RDIF, especially by signing a Memorandum of Understanding with RDIF, will enable RDIF and SCIC to set out efficient framework for identifying and realizing cooperation potential and effectively invest in projects in Russia and Vietnam for mutual benefit”.

Mr. Kirill Dmitriev, RDIF’s CEO, said: “Currently, the investment cooperation between Russia and Vietnam is mainly focused on energy projects. However, following last year’s free trade agreement between the Eurasian Economic Union and Vietnam, RDIF has identified a major opportunity to strengthen cooperation between the two countries in a broader range of sectors beyond commodities. This investment platform will focus on leveraging these potentially high-growth opportunities for the mutual benefit of Russian and Vietnamese businesses”.

Russian Direct Investment Fund (RDIF) was created in 2011 under the leadership of the President and Prime Minister of the Russian Federation and is managed by a highly qualified team of private equity investment professionals with broad international and Russian experience. The incorporation of RDIF is aimed at fostering the economic growth and foreign investors’ access to investment and business opportunities in Russia.

RDIF is currently managing a fund of 10 billion USD. RDIF has invested and committed for this purpose over RUB 760 billion, of which RDIF alone invested RUB 70 billion and over RUB 690 billion came from co-investors, partners and banks. RDIF also attracted over $27 billion of foreign capital into the Russian economy through long-term strategic partnerships.

Under RDIF’s portfolio, over 35% of its investment focuses on infrastructure, 11% for oil and gas, 9% for real estate. The rest of industries include telecommunication, agriculture, manufacturing industry, retails and comsumer goods…

For more details, log on at www.rdif.ru

State Capital Investment Corporation (SCIC): Incorporated in 2006 under the Decision of the Prime Minister, SCIC is acting as the state ownership representative at companies and investing in key industries/sectors of the economy to reinforce the controlling state sector in the economy while respecting to the market principles. SCIC is currently managing a portfolio of various companies that are operating in diversified industries of the economy such as financial services, energy, industry, telecommunications, construction, transportation, consumer goods, healthcare, IT...By April 2016, the total amount of state capital under SCIC's mangement has reached 18,755 billion dongs, the estimated market value of which has reached 98,000 billion dongs. By 2020, SCIC is targeted at becoming the government's strategic investor and a regionally sizable financial group and an effective drive to uphold the state sector in key industries and sectors of the economy.