SCIC plans to sell stakes in over 30 enterprises

SCIC has recently announced its second phase of divestments in 2024, including 31 companies. There are eight companies on the stock exchange, like Tien Phong Plastic JSC, Ha Giang Mineral & Mechanics JSC, FPT Corporation, Vietnam National Construction Consultants Corporation, An Giang Fisheries Import and Export JSC, Saigon Machinery Spare Parts JSC, Ben Tre Construction Material JSC, and Haiphong Construction & Infrastructure Development.

Notably, SCIC plans to divest all 5.8 per cent of its stake in FPT Corporation, equivalent to about $24.9 million. This will be the largest deal value in SCIC's second-phase divestment list for 2024. If successful, SCIC will no longer be a shareholder of FPT.

In addition, SCIC will also sell its 37.1 per cent stake to collect $18.8 million, making it the second-largest deal. Other potential deals include SCIC's divestment of an 87.3 per cent stake in VGV to bring back $12.3 million, a 97.4 per cent stake in Transport Investment Co-operation and Import Export JSC for $9 million, and a $98.8 per cent stake in Thai Nguyen Industrial Zone Infrastructure Development JSC for $5.5 million.

In the first phase of divestments in 2024, SCIC planned to offload capital to 27 state-owned enterprises. Among them, SCIC successfully divested from Vinacontrol Group Corporation and Film No. 1 JSC.

According to its 2023 audited financial report, SCIC achieved revenue of more than $278.9 million, down 30 per cent compared to 2022. Of which, revenue from investments declined by 92 per cent to $4.6 million. Meanwhile, revenue from dividends and distributed profits decreased by more than 29 per cent to nearly $212.2 million.

Thanks to increased gross profit and reduced losses in affiliated companies to more than $66.7 million, SCIC reported a pre-tax profit of more than $220 million in 2023, twice as much as the same period last year.

State Capital Investment Corporation is working on its transition towards becoming the Vietnamese government’s strategic investment fund, aiming to support the state’s endeavour in promoting economic growth. VIR’s Van Nguyen spoke with the corporation’s general director, Nguyen Chi Thanh, about the ins and outs of the upcoming transformation.

State Capital Investment Corporation (SCIC) has announced its plan to divest 88 companies this year.

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