Vietnam state investment arm told to invest in new strategic areas

By Toan Dao   April 27, 2016 | 08:03 am GMT+7
Vietnam state investment arm told to invest in new strategic areas
Vietnam's Deputy Prime Minister Vuong Dinh Hue at the meeting. Photo by Vietnam Government Portal

Deputy Prime Minister Vuong Dinh Hue has asked the State Capital Investment Corp. (SCIC) to consider investing in areas that are strategically vital to the country’s development, the Vietnam government portal said in a statement on Tuesday.

These include investments in new strategic industries that Vietnamese scientists or start-ups have potential to develop but require investment, and investments in key industries and fields the private sector is not interested in, Hue said in a meeting with the SCIC, without clarifying further.

He also asked the SCIC to give top priority to making the most of divestments from state-controlled enterprises. Divestments must follow directions issued by the party and government on the reform and restructuring of state-controlled enterprises, he said.

In October last year, the SCIC unveiled plans to sell the state's stake in diary giant Vinamilk, technology conglomerate FPT and eight other major state-controlled enterprises, which could bring about $4 billion. The SCIC holds 45.1 shares worth $2.5 billion, in Vinamilk. The SCIC estimated an increase of 18 percent in this year’s total revenue, of which VND7.3 trillion ($327 million) is expected to come from divestment from state-controlled firms.

The state's investment arm and the Ministry of Finance have been instructed to work together on a masterplan for the SCIC's development over 2016-2020 with a vision to 2030. The masterplan will serve as a foundation for the government to push forward the restructuring and divestment in state-controlled enterprises, the statement said.

The SCIC was established by the government in 2006. It manages state capital in over 500 enterprises operating in financial services, energy, manufacturing, IT, telecommunications, transportation, consumer products and healthcare.