Monday, December 5 2016

VietNamNews

SCIC delays Vinamilk divestment

Update: June, 02/2016 - 09:05
The State Capital Investment Corporation (SCIC) will not divest State-owned investment capital from Viet Nam Dairy Products Joint Stock Company, known as Vinamilk, this year as planned.— Photo dantri.com.vn

HÀ NỘI — The State Capital Investment Corporation (SCIC) will not divest State-owned investment capital from Viet Nam Dairy Products Joint Stock Company, known as Vinamilk, this year as planned.

Under the SCIC’s restructuring project issued by the Prime Minister in October last year, the corporation will divest State-owned capital from ten enterprises this year, among which there were some prominent names including Vinamilk, FPT and Bao Minh Insurance Corporation.

The divestment is expected to boost business efficiency.

The SCIC currently holds a stake of more than 45 per cent in Vinamilk. Industry insiders calculate that this State stake is worth around VND55 trillion (US$2.47 billion) on the market.

But an SCIC list of companies under divestment this year shows that SCIC will divest capital from two enterprises, including FPT and Sa Giang Import and Export Company, in which the State owns a 6 per cent and a 50 per cent stake, respectively.

SCIC divested State capital from 120 businesses in 2015, earning VND4.49 trillion from a book value of VND1.68 trillion.

This was a 2.7 time increase, achieving 176 per cent of the target.

As of December 31, 2015, SCIC’s portfolio comprised 197 enterprises, with the State capital’s book value being more than VND20 trillion, accounting for 23 per cent of the charter capital and a market value of nearly VND95.7 trillion.

Established in 2005, SCIC was seen as a bold measure by the Government during the height of the economic and SOE reforms that aimed to enhance the efficiency of State capital utilisation.

SCIC’s primary objectives are to represent state capital interests in enterprises and to invest in key sectors and essential industries with a view to strengthening the dominant role of the state sector, while respecting market rules. — VNS

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