State investment firm SCIC earns $46 million from bank deposits

By , Bach Duong   April 2, 2016 | 11:46 am GMT+7
State investment firm SCIC earns $46 million from bank deposits

The State Capital Investment Corporation (SCIC) earned over VND1 trillion ($46 million) from bank deposits last year, its corporate financial statement showed.

SCIC made an additional VND226 billion on bank savings during the first two months of this year, and is projected to earn an income of VND1.050 trillion from low-risk investments including cash deposits at commercial banks in 2016.

The investment company also owns more than VND5 trillion dong in government bonds.

“We put idle money in bank deposits until new investments come up. We choose to put money in banks that offer the highest interest rates. We see the earnings from [bank deposits] as a backup fund for future investments that might require a quick kick-start,” said Chairman Nguyen Duc Chi.

SCIC’s total revenue last year hit VND10.6 trillion dong, 45 percent higher than the year before. Its divestment from state-owned companies was valued at VND4.5 trillion, accounting for 42 percent of total revenue.

In a directive signed by a deputy prime minister last year, the government instructed SCIC to divest from 10 firms, including Vinamilk, a top listed dairy company, and leading technology conglomerate FPT.

“It is difficult to make business decisions under administrative instructions. It is better to allocate resources according to the market forces,” added Chi.

SCIC, as the government’s shareholder in state-run firms, estimated an increase of 18 percent in this year’s total revenue, of which VND7.3 trillion is expected to come from divestment from state-run firms.

 
 
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