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SCIC opens branch to raise profile in South

HCM City (VNA) – The State Capital Investment Corp (SCIC) opened its southern branch in Ho Chi Minh City on September 5, aiming to give easier access to companies in the country’s financial hub.

The southern branch will serve as a bridge linking companies, investors and the capital market in the southern region with SCIC headquarters in Ha Noi, said Le Thi Bang Tam, chairwoman of the SCIC management board.

SCIC’s primary objectives are to facilitate State-owned enterprise (SOE) reform and improve efficiency and use of the Government’s capital resources.

This institution would not be a purely administrative manager but a commercially viable and professional financial organisation operating in conformity with market rules, she said.

It would also enhance the effectiveness and autonomy of SOEs in accordance with the Enterprise Law.

“SCIC has been mandated to monitor its capital on a commercial basis,” said Tam. “Our vision is to become a strategic investor for the Government, generating maximum value and sustainable return on investments.”

SCIC’s missions include taking over and exercising State share holder rights in SOEs; managing State capital and generating added value and maximising capital efficiency; investing State capital in key industries inside and outside Viet Nam; providing financial services such as investment consultancy, equitisation consultancy, corporate restructuring, divestiture consultancy and business support services; and managing entrusted funds.

Tam said by the end of 2007, SCIC would take over State capital in 1,000 SOEs and the figure would amount to 3,000 by 2010. SCIC-linked companies currently include the Corporation Financing and Promoting Technology (FPT), Pacific Airlines, Viet Nam Dairy Products Co. (Vinamilk), Bao Minh Insurance Corp, and Viet Nam Construction and Import-Export Corp. (Vinaconex).

Mai Thi Kieu Lien, chairwoman of Vinamilk’s management board, said the company was equitised in 2003 with total capital of 29 trillion VND, 47.6 percent of it contributed by the State.

She said since last year when the SCIC took over State capital in Vinamilk, it had provided quick and flexible solutions to problems that have arisen.

“This is a very suitable management mode for equitised companies with State capital like Vinamilk,” said Lien. Luong Hoai Nam, CEO of Pacific Airlines, said when it became a SCIC-linked company, the carrier was in heavy debt, with total debt nine times higher than its registered capital of 39.2 billion VND.

SCIC threw Pacific Airlines a life-buoy, he said. “Without SCIC’s reshuffling, Pacific Airlines would have gone bankrupt,” said Nam.

To date, the joint-stock carrier’s capital amounts to 800 billion VND and its assets are estimated at 176 million USD.-Enditem

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