SCIC conference confirms deployment of new Development Strategy 2030 and Vision 2035

HANOI, Viet Nam, January 24, 2023 – On November 10, 2023, the Prime Minister of Viet Nam issued PM Decision No. 1336 approving the Development Strategy to 2030, Vision to 2035, Business and Investment Development Plans until 2025 of the State Capital Investment Corporation (SCIC).

Implementing the Prime Minister's Decision, January 18, 2024, in Hanoi, SCIC organized a Conference to announce and implement the SCIC Development Strategy to 2030, Vision to 2035 and the Business and Investment Development Plans.

Attending the Conference were representatives of the Party Committee Leaders of the Central-Level State-Owned Enterprises’ Group, the Government Office, the Ministry of Justice, the Ministry of Public Security and the Commission for the Management of State Capital at Enterprises (CMSC).

Representing SCIC were Mr. Nguyen Chi Thanh - Secretary of the Party Committee, Chairman of the Board of Members, Mr. Nguyen Quoc Huy - Deputy Secretary of the Party Committee, General Director, and colleagues, members of the Party Committee, Board of Members, Board of Directors, Board of Supervisors, and all of SCIC’s party members, officials and employees.

Mr. Nguyen Quoc Huy - Deputy Secretary of the Party Committee, General Director of SCIC delivering the opening speech of the Conference

Speaking at the opening of the Conference, Mr. Nguyen Quoc Huy - Deputy Secretary of the Party Committee, General Director of SCIC gave an assessment of SCIC's activities in the period 2006 - 2023 and the process of implementing the Development Strategy and 5-Year Plans of SCIC. After more than 17 years of operation, overcoming many difficulties during the formative and early development years, while at the same time, having to effectively implement the consolidation and improvement of the operational model, implement restructuring projects with authorized approval, SCIC has achieved a number of outstanding results in rearranging, equitizing, and restructuring at state-owned enterprises (SOEs); the initial successful implementation of the new SOE model whose function is investing and trading state capital in the overall economy; investment promotion and cooperation with international financial organizations and funds; building policy mechanisms; complying with legal regulations; building a team of well-trained, highly specialized and experienced staff in state capital management, investment and trading.

Mr. Dinh Viet Tung - Deputy General Director of SCIC presenting the key contents and plans to implement the tasks within SCIC's Development Strategy

At the Conference, Mr. Dinh Viet Tung - Deputy General Director of SCIC presented the key contents and plans to implement the tasks within SCIC's Development Strategy. The content of the Strategy clearly state the following: Consolidate, develop and improve SCIC's operational efficiency to perform well and effectively its role as an institution and instrument of the Government to: (i) support and promote the process of restructuring, arranging and innovating SOEs; (ii) carry out state capital investment and trading according to market mechanisms and tasks assigned by the Government and Prime Minister; (iii) gradually transform SCIC's operational model to that of a professional investment organization, with the direction that after 2025 SCIC will become the financial investment organization with leading equity in Viet Nam.

The Development Strategy and 5-Year Plan are important legal foundations and clearly define goals, directions and solutions for SCIC to promote the implementation of capital investment and trading activities, fulfilling its role as the Government investor.

The strategy sets specific targets for the period to 2025: average annual revenue to reach 9,500 billion VND, profit after tax to be 6,700 billion VND, state budget contribution to be 5,400 billion VND, investment disbursement to be 36,300 billion VND.

The percentage of investment capital in key industries, fields and projects that the state focuses on investing in according to the 2021 - 2030 strategy, which are high-tech industries, digital economy, energy, key infrastructure projects, and smart cities, modern healthcare, pharmaceuticals, finance and banking, and other fields, will account for over 50% of total investment capital.

Representatives of large enterprises such as FPT also gave opinions in the discussion segment. Mr. Hoang Viet Anh - Chairman of FPT Telecom said: SCIC's Development Strategy to 2030 and Vision to 2035, business and investment development plans until 2025 of SCIC as approved by the Prime Minister are highly important to SCIC and businesses under its management. The Strategy also clearly states that, in addition to promoting economic restructuring associated with innovative growth models, the long-term, cross-cutting orientations, tasks, and solutions set out in the Strategy will contribute to promoting sustainable economic development.

Dr. Vo Tri Thanh - Economic expert, Former Deputy Director of the Central Institute for Economic Management Research speaking at the Conference

At the Conference, Dr. Vo Tri Thanh - Economic expert, Former Deputy Director of the Central Institute for Economic Management Research also appreciated the fact that SCIC has had its Development Strategy approved by the Prime Minister. For SCIC, this is a challenge but at the same time creates many opportunities for breakthroughs.

Firstly, businesses must know how to be frugal, manage risks, and have a sustainable business development scenario. When the economic situation is unstable, businesses must have a fighting plan to respond promptly, and at the same time learn risk management tools.

Second is looking for opportunities. In the context of the economy shifting towards green and digital sectors, businesses need to have flexible transformation, bringing investment and business to potential places not only domestically but also internationally.

Third is to keep up with the trends. In order for SCIC to be able to grow alongside and as robustly as major business entities in the world, Dr. Vo Tri Thanh believes that SCIC needs to prepare a stable and solid foundation, upgrade capital sources, and improve the quality of human resources to have a comprehensive transformation.

Speaking at the Conference, Mr. Nguyen Chi Thanh - Secretary of the Party Committee, Chairman of the Board of Directors of SCIC stated: After 17 years of operation, with the achievements that SCIC has achieved in building and perfecting mechanisms and policies; corporate governance innovation; restructuring and improving financial capacity; performing well its role and tasks of preserving and developing state capital in SOEs, SCIC has affirmed its capacity and strong trust given by the Party Committee of the Central-Level State-Owned Enterprises’ Group, the Government and the State. All SCIC leaders and employees are fully aware that the approval of the Strategy and 5-Year Plan is only the first step on the road to successfully implement the SCIC Development Strategy which still has many difficulties and challenges. Meanwhile, the remaining time to implement the 5-Year Plan is only 2 years, from 2024-2025, with extremely challenging corporate targets for capital sales and investment in the context of some basic problems in terms of investment. Legal issues have not been resolved such as: rearranging houses and land before selling capital in enterprises with over 50% charter capital, and the investment decision authority of SCIC's Board of Directors has not been clearly defined.

Therefore, SCIC hopes to continue to receive the attention and direction of Ministries, Branches, Central and Government Agencies, and the Prime Minister in the immediate future to remove legal obstacles to promptly implement and complete the 5-Year Plan for 2024 - 2025. Receiving comments from delegates at today's Conference, SCIC will continue to complete the detailed schedule to implement the Development Strategy and the 5-Year Business Plan.

Mr. Nguyen Chi Thanh - Secretary of the Party Committee, Chairman of the Board of Directors of SCIC delivering the concluding speech at the Conference

Mr. Nguyen Chi Thanh also clearly stated solutions for each goal and task assigned by the Government and the Prime Minister, including solutions for strategies and orientations for the period until 2025: to build and perfect the institutional system; corporate governance innovation; to restructure and improve financial capacity; to transform SCIC's operational model into a professional financial investment organization; to improve investment capacity, especially emphasized in the SCIC strategy focusing on attracting investment for domestic enterprises; to improve the effectiveness of risk management and internal audit; to develop modern information systems and invest in technological innovation; to develop relationships with partners and enhance SCIC's brand. On behalf of the SCIC Party Committee and Board of Directors, Mr. Thanh requested that all SCIC officials and employees need to proactively unite and integrate in the system, be responsible and creative in their work to successfully complete the 5-Year Plan until 2025 and SCIC's Development Strategy for the following years.

At the end of the Conference, Mr. Nguyen Chi Thanh thanked the leaders and officials of the Party Committee of the Central-Level State-Owned Enterprises’ Group, the CMSC, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Justice, and the Government Office for attending today's Conference. With the attention of leaders at all levels, the collective leadership and all SCIC staff will try and do their best to complete the 5-Year Business Plan by 2025 and successfully implement the goals, tasks of SCIC Development Strategy to 2030 and Vision to 2035.

Overview of the Conference