Photo: VGP/HT
On December 3rd, the State Capital Investment Corporation (SCIC) hosted an international seminar themed: “Enhancing the State Capital Investment Corporation Model Towards Professional Capital Management and Establishing a Government Investment Fund.”
Implementing the Party’s policy, the Government has legalized it through a Decree. From its establishment until October 2025, SCIC has acquired 1,084 enterprises with a total state capital value (as per charter capital) of VND 32.5 trillion, including 25 conglomerates and corporations.
Since its inception, SCIC has divested from 1,067 enterprises (fully sold: 963, partially sold: 85, sold purchase rights: 19), generating over VND 55 trillion, 4.2 times the initial capital.
Notably, in 2008-2009, SCIC, as the Government’s investor, proactively invested in the energy sector by acquiring 10-25% stakes in several hydropower and thermal power enterprises under agreements with EVN. This supported EVN in mobilizing capital for power projects while maintaining state control over critical power assets, ensuring energy security.
SCIC’s strategic investment in Military Bank (MB) totaled VND 2.34 trillion, yielding an estimated VND 13.516 trillion (cumulative dividends: VND 800 billion, market value difference as of May 21, 2025: VND 12.7 trillion).
SCIC invested twice in Vietnam Airlines, totaling VND 14.666 trillion. The first investment of VND 6.894 trillion aided Vietnam Airlines during the COVID-19 crisis. Recently, SCIC disbursed VND 7.770 trillion to bolster its charter capital.
Deputy Minister of Finance Cao Anh Tuấn noted SCIC’s results have not matched its potential. The National Assembly passed Law 68/2025/QH15 on state capital management, shifting from “capital management and use” to “capital management and investment,” providing a legal framework to enhance state asset efficiency.
The Ministry of Finance is finalizing three decrees under Law 68/2025/QH15: state capital management, enterprise performance evaluation, and state enterprise restructuring. Additionally, six sector-specific decrees are being drafted for key conglomerates, including one for state capital investment enterprises, enabling SCIC’s full role.
The Politburo is developing a State Economic Development Plan to enhance state enterprise efficiency and restructure state-owned enterprises by reducing numbers, increasing scale, and focusing on essential sectors.
Deputy Minister Cao Anh Tuấn emphasized studying international Government Investment Fund models like Temasek, Khazanah, and Danatara. “To adopt such a model, SCIC needs a financial mechanism, resources, and legal framework to become an effective financial tool,” he said.
At the seminar, international experts discussed state enterprise reform, analyzed the Temasek model, and evaluated SCIC’s role in restructuring. Recommendations focused on organizational structure, operational mechanisms, transparency, and aligning SCIC with international standards.
Mr. Nguyễn Chí Thành – Chairman of SCIC’s Board of Directors – Photo: VGP/HT
Mr. Nguyễn Chí Thành, SCIC’s Chairman, highlighted the seminar’s practical proposals, especially granting SCIC more autonomy in investment, divestment, and corporate governance. With sufficient authority and flexibility, SCIC will operate more professionally, transparently, and efficiently, evolving into a Government Investment Fund with independent oversight and transparent reporting.
After nearly 20 years, SCIC has restructured state enterprises from over 1,000 to around 100, a significant transformation, Mr. Thành noted.
SCIC’s leadership stressed a clear strategy is crucial for long-term vision. The 2030 Strategy with a 2035 Vision, approved in 2023, provides a foundation for implementing decrees and practical guidelines.
SCIC proposes greater autonomy in investment decisions, avoiding administrative interference in commercial choices. International experts suggested SCIC’s investments should be market-driven, similar to Temasek.
Expanding state capital management is critical. SCIC currently manages only 2% of total state capital, necessitating additional mandates, particularly through capital increases in existing enterprises like Vietnam Airlines, Sông Đà, and Vinaconex, rather than establishing new investment corporations.
Financially, SCIC seeks higher charter capital and retention of post-tax profits for reinvestment. Current regulations limit profit retention to 30% for development funds, restricting investment expansion.
Dr. Cấn Văn Lực, a financial advisor, proposed adjusting the “capital preservation” goal to a long-term, portfolio-based approach. “Absolute capital preservation per project is unrealistic. Portfolio performance over the medium to long term is key,” he said, urging SCIC to focus on enterprise value, portfolio diversification, and macroeconomic stability, akin to global Government Investment Funds.
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