SCIC to sell stakes in 121 firms in bid to make after-tax profit

State Capital Investment Corporation (SCIC) said it would offload capital in 121 businesses in 2018. -Photo ndh.vn

The corporation expects to make an after-tax profit of VND5.4 trillion (US$237 million) this year, posting a 17 per cent year-on-year decrease.

It has set a reduction in both revenue and after-tax profit. Accordingly, its revenue target this year is VND7.9 trillion, up 5.9 per cent from 2017.

SCIC has successfully sold 30 per cent of capital at Binh Minh Plastic Joint Stock Company to Thailand’s Nawaplastic Industries to earn VND2.3 trillion. Nawaplastic Industries increased its shares to 51 per cent of total capital at Binh Minh Plastic JSC.

SCIC plans to offload its stakes at Thieu nien Tien Phong Plastic Joint Stock Company, FPT Joint Stock Company and Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex) again this year after a failure in 2017. Maritime Bank has the largest charter capital in SCIC’s list of selling shares this year with VND11.7 trillion. The divestment at the bank was unsuccessful as no investor registered within the deadline of March 21.

Many large companies in the thermo-power sector will also be part of SCIC’s divestment plan, such as Quang Ninh Thermo-power Joint Stock Company and Hai Phong Thermo-power Joint Stock Company. The two companies have charter capital of VND4.5 trillion and VND5 trillion, respectively.

Other major names in the divestment include Domesco Medical Import Export JSC, Bao Viet Group, Thang Long Corporation and Viet Nam Vegetable Oil Industry Corporation.

Notably, the list of divestment this year does not have Viet Nam Dairy Product Joint Stock Company, Hau Giang Pharmaceutical Joint Stock Company and Viet Nam Military Joint Stock Commercial Bank. SCIC holds shares of 36 per cent, 43 per cent and 9.7 per cent in these three companies, respectively.

It will sell shares at Viet Nam Dairy Product JSC following orders from the government.

Established in 2006, SCIC operates with two main functions: representing the government’s capital interests in State-owned enterprises and investing in State capital in key sectors and essential industries.