Vietnam Sets up State Capital Investment Corp.

Vietnam Sets up State Capital Investment Corp.

The government of Vietnam on June 20 issued a decision to establish the State Capital Investment Corporation (SCIC) with chartered capital of VND5 trillion (US$316.5 million).

SCIC will have the main headquarters in the capital city of Hanoi, and its member companies, branches and representative offices in other provinces inside and outside the country.

It is designed to take over and manage the state capital in the State-run companies, as well as make decisions on where and when to inject money.

The capital is expected to invest in the State-owned one-member liability companies, other liability firms with more than two members, equitized enterprises and newly-established joint stock firms.

SCIC will focus its investment on industries and companies that the State needs to hold the controlling stake, sharing capital with joint venture and joint stock firms, and investing in stocks and bonds.

Also according to the decision, the corporation will carry out business on the economic areas appointed by the State. It will also mobilize capital from domestic and foreign sources and offer financial services such as consultation in investment, financing, equitization, and ownership conversion.

As at the end of last year, Vietnam had around 4,000 State-owned enterprises with combined capital of around US$12 billion, accounting for 62.1 per cent of the total capital of all businesses in the country.

• Liberated Saigon, Vietnamnet