State Capital Investment Corporation (SCIC) expects to make a pre-tax profit of 6.6 trillion VND (290.5 million USD) in 2017, posting a 33 percent year-on-year increase.

 

The corporation said at a meeting on January 17 in Hanoi that it posted revenue of 7.38 trillion VND and after-tax profit of 6.3 trillion VND, up 36 percent from the set targets.

 

Last year, it successfully sold its stakes in 38 firms, including total share sales at 36 units and a part of shares at two others. SCIC collected 932 billion VND from its divestments, 2.2 times higher than their cost prices.

 

By selling a 5.4 percent stake in Vietnam Dairy Product JSC (Vinamilk), which was directly paid to the State budget, SCIC collected 21.2 trillion VND, which was 19.1 times higher than cost prices.

 

So far, the corporation has sold State capital in 986 companies since its establishment in 2005, collecting 28 trillion VND, 3.5 times higher than cost prices.

 

In November, SCIC successfully sold its 48.3 million shares of Vinamilk, equal to 3.33 percent of the dairy firm’s capital, to Singaporean firm Jardine Cycle & Carriage for 186,000 VND per share in a deal worth a total of 9 trillion VND.

 

By the end of last year, SCIC was managing State capital worth 19.1 trillion VND in book value at 133 enterprises. SCIC plans to step up the handover of State capital ownership, strengthen management and continue restructuring as well as speed up the sale of State capital. Its financial investment activities will also be increased.

 

Nguyen Chi Thanh, SCIC’s Deputy General Director, said SCIC met the set targets. It was not in a hurry to sell stakes in State-owned capital in 2017 as it forecast the VN-Index would be higher this year.

 

“We keep assets to sell them when the VN-Index increases, thus creating higher value for divestments,” Thanh said.-VNA