SCIC keeps to SOE divestment plan for 2020

April 14, 2020 | 17:40

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State Capital Investment Corporation (SCIC) has recently confirmed its plan of divesting 85 state-owned enterprises, including VNSteel, Vinatex, and Bao Viet Holdings, among others.

There are 27 listed firms in SCIC’s divestment proposal, including Bao Viet Holdings (HSX: BVH), Bao Minh Insurance (HSX: BMI), Tien Phong Plastic (HNX: NTP), and Binh Minh Plastics (HSX: BMP).

On the other hand, SCIC is a major shareholder owning more than 50 per cent of capital in a string of other companies on the list, for example VNSteel (94 per cent), Vietnam Plastics (66 per cent), Seaprodex (63 per cent), and A Chau Food Technology JSC (79 per cent).

In the first two months of this year, only VND79 billion ($3.43 million) of state capital was divested at four businesses.

Last year, SCIC offloaded VND82 billion ($3.57 million) state capital in 12 businesses, taking back VND314 billion ($13.65 million) in proceeds, equal to 3.8 times the initial value.

scic keeps to soe divestment plan for 2020

SCIC is looking to stage near a hundred divestments of varying scales this year

“The situation is attributable to two major reasons which are the stock market sliding into the doldrums and the introduction of a more stringent capital divestment scheme. This is expected to still drag on this year,” Nguyen Duc Chi, chairman of SCIC told VIR in a previous interview.

“The market will likely get worse this year due to the implications of the coronavirus (COVID-19) outbreak. Despite our efforts to announce auctions and completing the necessary procedures, many cases failed due to the lack of attention from investors,” Chi added.

SCIC aims to achieve a tally of VND6.916 trillion ($300.7 million) in revenue, up 6 per cent on-year, and pre-tax profit of VND4.839 trillion ($210.4 million), contributing VND3.470 trillion ($150.87 million) to the state budget.

By Minh Luu

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