State Capital Investment Corporation (SCIC) has just published Announcement No.281/TB-VPCP about the list of 108 enterprises where it plans to sell the state's capital in 2019, collecting VND21.61 trillion ($939.52 million).
Accordingly, the list includes a lot of large enterprises, including Bao Minh Insurance Corporation (51 per cent state capital), Licogi Corp. (41 per cent), Lam Dong Pharmaceutical JSC (Ladopha – 32 per cent), Quang Ninh Thermal Power JSC (11 per cent), FPT Corporation (6 per cent), Bao Viet Holdings (3 per cent), and Binh Minh Plastic JSC (0.02 per cent).
|SCIC plans to collect $939.52 million by selling capital at 108 enterprises in 2019 |
In addition, SCIC holds 36 per cent of capital at Vietnam Vegetable Oils Industry Corporation (Vocarimex), 9 per cent at Hai Phong Thermal Power JSC, 10 per cent at Vietnam Book JSC, and 18 per cent at Civil Engineering Construction Corporation No.8 (Cienco8).
Especially, Vietnam Dairy Products JSC (Vinamilk) is also on SCIC's divestment wish-list this year, but the corporation needs to wait for the Prime Minister’s directions regarding the company.
Along with the list, SCIC announced its business and investment plans for 2019 with a revenue target of VND6.5 trillion ($282.57 million) and pre-tax profit of VND5.02 trillion ($218.26 million). Nevertheless, including the amount collected from divesting enterprises on the list, the 2019 revenue of SCIC will hit VND21.61 trillion ($939.57 million).
As of the end of May this year, SCIC manages the state capital at 144 enterprises at the market price of about VND116 trillion ($5.04 billion).
Particularly, in the period from 2017 to the end of May 2019, SCIC divested from 51 enterprises (including Vinamilk and Binh Minh Plastics). 47 enterprises it fully divested, reduced ownership in four businesses, and sold the right to buy shares in two other enterprises.
The total proceeds to be obtained are VND20.1 trillion ($873.91 million), which would bring a return of VND17 trillion ($739.13 million), 6.5-times as much as the original investment of VND3.1 trillion ($133.78 million).
Notably, at the end of 2018, SCIC has deposited at banks more than VND26 trillion ($1.13 billion) with a term of over a year. The corporation's long-term financial investments are worth VND16.8 trillion ($730.43 million).