Vietnam State Capital Investment Corp
From Taighde
| State Capital Investment Corporation | |
|---|---|
| Country: | Vietnam
|
| Chairman: | Vu Van Ninh
|
| Based in: | Hanoi
|
| Inception: | June 20, 2005
|
| Origin: | Non-commodity
|
| Assets: | $420 million
|
| Website: | http://www.scic.vn/
|
| Reports | Sovereign Wealth Funds Contact and Information Report |
Vietnam's State Capital Investment Corporation (SCIC) was founded on June 20, 2005 by decision of the Prime Minister of Vietnam. SCIC's operations began in August 2006, and as of June 30, 2008, had a portfolio valued at USD 420 million.
SCIC's stated primary objectives are to facilitate reforms of state-owned enterprises (SOEs) and improve efficiency of the state capital utilization. SCIC is mandated to represent state capital interest in various types of business areas, including financial services, energy, manufacturing, telecommunications, construction, transportation, consumer products, health care, and information technology.
SCIC lists its business operations as: receiving state capital ownership in state invested companies, managing state capital as sole representative of state ownership, investing / divesting in key sectors, restructuring SCIC-linked companies, contributing capital to joint ventures and joint stock companies, investing wholly or partly in establishing new ventures, investing in financial markets, financial restructuring, equitization (a term they use instead of "privatization"), bond issuance and underwriting, borrowing, issuing bonds in international and domestic markets, managing entrusted funds, organizing and participating in investment forums and conferences, negotiating and receiving foreign loans and assistance, providing business training programs for portfolio companies, and conducting seminars and providing business information and investment opportunities.
Contents |
Leadership and Board Members
| Name | Position | Other Title |
|---|---|---|
| Vu Van Ninh | Chairman | |
| Hoang Nguyen Hoc | Managing Board Member & Executive Director | |
| Le Song Lai | Executive Director | |
| Tran Van Ta | Vice Chairman & CEO | Associate Professor, Ph.D |
| Cao Viet Sinh | Managing Board Member | Vice Minister at MPI |
| Do Huu Hao | Managing Board Member | Vice Minister at MOI |
| Nguyen Quoc Huy | Managing Board Member | Chief of Supervisory Board |
| Tran Xuan Ha | Managing Board Member | Vice Minister at MOF |
Portfolio
According to the SCIC website, they are linked with at least 805 different companies across a broad spectrum of areas. A list of these 805 companies can be found here, broken down by sector and with details about investment amounts in Vietnamese.
Elsewhere the SCIC lists its number of received companies at 876, the number of divested companies at 42, and the number of portfolio companies at 832.
SCIC breaks its portfolio down by class of assets:
- - Group A: Strategic investments
- Number of companies: 12
- Capital distribution: 17.3%
- - Group B: Flexible investments
- Number of companies: 111
- Capital distribution: 56.21%
- - Group C: Divestments
- Number of companies: 709
- Capital distribution: 26.49%
Investment Partners
SIMEST (Italy)
On November 5, 2008, SCIC announced a partnership with SIMEST (Societá Italiana per le Imprese all' Estero), an Italian development finance institution. In a Memorandum of Understanding, the two agreed to foster a business relationship among Vietnam and Italian companies and boost Italian direct inflow investment in Vietnam, especially in equitization program in such sectors as infrastructures, construction, automotive, mechanical, rubber, plastic, textile, food, shoes and leather, wood, pharmaceutical industry, etc. They also agreed to exchange information on economic and industrial development, assist companies from both countries with their investment activities, and support each other in the identification of appropriate investment partners who want to set up business projects in Vietnam. SIMEST has already been approved for 14 projects in Vietnam, with total investment of €140 million.
UEM International (Malaysia)
On August 19, 2008, SCIC announced the signing of a Memorandum of Understanding with UEM International, a Malaysian organization. Both parties agreed to jointly explore business opportunities in "green" highway projects, medical and industrial waste management projects, and asset and facilities management in Vietnam.
UEM IB is a subsidiary of UEM Group Berhad, an investment holding company wholly-owned by the Government of Malaysia.
Qatar Investment Authority
See Vietnam-Qatar Fund for more information
On April 2, 2008, SCIC announced the signing of a Memorandum of Understanding with the Qatar Investment Authority (QIA). The parties agreed to share information on potential investment opportunities in Vietnam, as well as raising funds overseas and studying the possibility of setting up a investment fund to facilitate Qatari investment in Vietnam.
Morgan Stanley (USA)
In March 2007, it was announced that SCIC would ally with Morgan Stanley on investment projects, at the expense of other banks. The deal was expected to begin operation by the end of 2007, and would have been the first of its kind in Asia.
In February 2008, however, both parties confirmed that the deal had fallen through, due to massive complaints by other rival banks at being shut out of Vietnam's investment market. Less than two weeks later, Morgan Stanley announced a new joint venture, this time with Gateway Securities, a Vietnamese brokerage firm owned by businessman Doan Van An. The new firm, Morgan Stanley Gateway Securities, is based in Hanoi and is 49%-owned by Morgan Stanley, the most a foreign investor can hold in a domestic securities firm; there is the possibility that Morgan Stanley will increase its stake when Vietnam must open up its security business to foreign-majority ownership in 2011 due to World Trade Organization commitments.
Temasek Holdings (Singapore)
On August 13, 2007, SCIC announced an agreement with Temasek Holdings, a sovereign wealth fund of the Singapore government, to promote continued cooperation in the areas of corporate governance, risk management, information technology, human capital, privatization, and investment.
AXA Group (France)
In 2007, SCIC announced an agreement with the AXA Group, a French financial protection firm, to cooperate in the exchange of information and expertise between the SCIC and AXA and exploration of investment opportunities in Vietnam.
At the same time, AXA Group acquired a 16.6% stake in Bao Minh Insurance Corporation, one of the top insurance providers in Vietnam, for USD 75 million.
Nomura Holdings (Japan)
In 2007 SCIC announced an agreement with Nomura Holdings, Inc., a holding company for the Nomura Group, a Japanese financial services firm with activity all over the world. According to this Memorandum of Understanding, Nomura agreed to provide assistance and consultation to SCIC on a wide range of issues, including governance, management, and restructuring of SCIC enterprises, the development of investment expertise for the Vietnamese financial markets, and capital raising to finance SCIC investment projects.
Nomura also agreed to provide training to the staff of SCIC and SCIC enterprises in order to enhance competence in key areas such as corporate governance, risk management, corporate finance, and financial and industry analysis. In return, SCIC agreed to provide Nomura with local knowledge in order to help the company build up its investment and business operations in Vietnam.
HSBC
SCIC announced an agreement with the international banking firm HSBC by which HSBC committed to providing consultation and technical assistance on a number of key areas in order to facilitate the state owned enterprises equitization process and management of state investment enterprises in Vietnam. These areas include training and competency enhancement, best practices on information technology and providing market updates, economic research, and information on the international capital market. HBSC also agreed to help SCIC with listings on stock exchanges.
In return, HBSC was offered favorable rights to participate in both advising and underwriting listings of Vietnamese companies in overseas stock exchanges and in overseas bond issuances of Vietnamese companies.
SK Securities (Korea)
SCIC announced the signing of a Memorandum of Understanding on December 19, 2006, with SK Securities, a Korean finance and brokerage firm. In this agreement, SK Securities agreed to provide consultancy and training on privatization, restructuring, and IPO/listing on both domestic and foreign securities markets to SCIC and state-owned enterprise officials.
In return, SCIC agreed to provide SK Securities with information on the policies of SOE privatization in accordance with the laws of Vietnam, and on SOEs planning for overseas financing and/or IPOs.
Khazanah Nasional (Malaysia)
In October 2006, SCIC announced an agreement with Khazanah Nasional, the sovereign wealth fund of Malaysia.
Offices
Executive Office Department:
No. 6 Phan Huy Chu Street
Hanoi
Vietnam
Telephone: 84 46 2780136
Fax: 84 46 2780136
Southern Branch:
3rd Fl., Itaxa Building
126 Nguyen Thi Minh Khai
Ho Chi Minh
Vietnam
Telephone: 84 8 299 2082
Fax: 84 8 299 2085
