SCIC designated to become the top financial investment organization in Viet Nam in 2025

HANOI, Viet Nam, November 10, 2023 - Deputy Prime Minister of Viet Nam, Mr. Le Minh Khai signed the Central Committee Decision No. 1336 approving the Development Strategy to 2030 and Vision to 2035; Industry Plan and Development Investment Plan until 2025 of the State Capital Investment Corporation (SCIC)

After 2025, SCIC will become the financial investment organization with leading equity in Viet Nam

The overall goal of SCIC's Development Strategy to 2030 and Vision to 2035 is to continue to focus on implementing the tasks of asset receiving, equitizing, restructuring, and divesting at state-owned enterprises that no longer need to hold on to assets, to perform well and effectively its role as an institution and instrument of the Vietnamese Government to support and promote the process of restructuring, rearranging and innovating to improve the operational efficiency of state-owned enterprises.

SCIC will strengthen to ensure sufficient financial and administrative resources can focus on performing the tasks of capital trading, developing and investing in large-scale, important projects, operating and orienting the development of subsidiaries according to SCIC's Development Strategy; conducting effective production and business activities, contributing to economic growth in accordance with Viet Nam’s socio-economic development strategy at each stage.

SCIC will continue to implement capital trading according to market mechanisms and tasks assigned by the Vietnamese Government and Prime Minister.

Gradually, SCIC's operating model will transform to that of a professional investment organization, with the post-2025 orientation turning SCIC into the financial investment organization with leading equity in Viet Nam.

SCIC Development Strategy setting specific operational goals for each stage

Specifically, for the period until 2025:

+ For activities to support and promote the process of restructuring, rearranging and innovating state-owned enterprises: Continue to carry out the task of retaining the right to represent state capital owners from ministries, branches and localities to continue asset restructuring in these enterprises through investment activities, asset holding, divestment, rearrangement, ownership conversion, etc.; to receive enterprises and state capital in enterprises according to tasks assigned by the Government and Prime Minister to support capital recovery, restructuring, and to improve operational efficiency of enterprises.

+ For capital trading activities, SCIC to carry out 2 groups of tasks: (i) Investing and trading capital according to market mechanisms in industries and fields that bring efficiency and where SCIC has advantages according to the principle of autonomy and self-responsibility, capital preservation and development, not limited to investment fields; (ii) Conducting capital trading according to political tasks assigned by the Government and Prime Minister; which focuses on key and important industries and fields that require State ownership, or to support handling financial difficulties of businesses due to financial crises or force majeure.

Period 2026 - 2030: To concentrate resources to promote capital trading activities, focusing on investing in infrastructure projects, large and important projects, in accordance with the socio-economic development strategy of the country at each stage: to invest in key industries and fields that play the leading, pioneering role.

Period 2031 - 2035: SCIC to operate under the model of a professional financial investment organization, to be an investment instrument and channel of the Government in the economy.

5-year production, business and investment development plan for the period until 2025

With assigned functions, tasks and role as a professional investment organization, SCIC focuses on investment activities in: (i) key fields and projects; (ii) effective fields and projects and (iii) attracting investment capital from society domestic and abroad; Including a number of specific areas as follows:

- Investments in key projects, industries and fields: To focus on and prioritize considering investment opportunities in a number of key industries, fields and projects that the State needs to focus on investing and holding, as designated in the 10-year Socio-Economic Development Strategy for the period 2021 - 2030 and criteria for classifying state-owned enterprises; at the same time, to ensure SCIC's financial capacity and investment efficiency according to market principles, such as:

+ High-tech fields (telecommunications, information technology...), digital economy (digital infrastructure, database systems...), energy (renewable energy, clean energy...); key infrastructure projects (airports, roads, railways), smart cities, modern medicine and healthcare, pharmaceuticals; finance - banking; high-tech agriculture...;

+ Investments in business groups, corporations, commercial banks...;

+ Investments of additional capital in a number of large, effectively operating and prospective enterprises in SCIC's existing investment portfolio to serve the enterprises’ development investment plan;

+ Investments in innovative fields, contributing to the transformation of the economic growth model based on science and technology.

- Investments and capital trading in industries and fields according to political tasks assigned by the Government and Prime Minister; implemented via Government capital or capital from SCIC’s own balance sheet.