On November 10, 2023, the Prime Minister issued Decision No. 1336/QD-TTg ("Decision 1336") approving the development strategy until 2030 and the vision until 2035, the business plan, and the investment plan for the period until 2025 of the State Capital Investment Corporation ("SCIC").
Here, ATA Legal Services provides updates on some key contents of the investment directions and activities of SCIC from now until 2035 outlined in Decision 1336.
1. Investment direction by sector: Focus on priority sectors according to the Socio-Economic Development Strategy 2021-2030
(i) Up to 2025: SCIC aims to ensure the dual objective of investing in priority sectors, areas, and key projects that the state focuses on, maintaining control, and preserving capital development.
The allocation of SCIC's investment capital is as follows:
+ Sectors and projects prioritized by the state in the socio-economic development strategy for 2021-2030, including high technology (telecommunications, information technology, etc.), digital economy (digital infrastructure, database systems, etc.), energy (renewable energy, clean energy, etc.), key infrastructure projects (airports, roads, railways, etc.), smart cities, modern healthcare, pharmaceuticals, finance, banking, and other sectors: over 50% of total investment capital.
+ Other economically viable sectors and projects: less than 50% of total investment capital.
(ii) From 2026 - 2030 and towards 2035: SCIC will operate under a professional investment organizational model.
The allocation of SCIC's investment capital is as follows:
+ Sectors and projects prioritized by the state in the socio-economic development strategy for 2021-2030: over 70% of total investment capital.
+ Other economically viable sectors and projects: less than 30% of total investment capital.
2. Investment direction by scope and sector: Concentrate on investing in key, efficient sectors and projects that attract investment from both domestic and foreign sources
- SCIC focuses on investing in key, efficient sectors and projects that attract investment from both domestic and international sources. This includes investments in conglomerates, corporations, commercial banks, etc.
- Supplementary capital investments are made in large, efficiently operating enterprises with potential within SCIC's existing investment portfolio to support their development plans.
- Investments are directed towards innovative and creative areas, contributing to the transformation of the economic growth model based on science and technology.
3. Direction for Implementing Capital Mobilization and Financial Advisory Activities for Enterprises
SCIC, evolving into a professional financial investment organization, will not only engage in capital investment activities but also provide advisory, promotion, and foreign investment attraction activities. This involves connecting and collaborating with investment funds, and financial organizations worldwide:
- Specific activities include acting as a bridge to mobilize capital in the international financial market by advising, promoting, and attracting investors, investment funds, and financial organizations globally to invest or co-establish specialized investment funds focusing on Vietnam's key sectors, especially infrastructure.
- Carry out advisory activities with a focus on areas such as corporate management, equitization, development of business strategies, assessment and evaluation of investment opportunities, mergers and acquisitions, and divestment."
4. Emphasis on Accelerating Equitization Activities
- SCIC is tasked with intensifying equitization activities in line with the approved portfolio attached to the Prime Minister's Decision No. 1479/QD-TTg. This includes restructuring and divesting according to the specified schedule.
- SCIC is directed to promptly assume the state ownership representation rights in enterprises transferred to SCIC according to legal provisions and the Prime Minister's instructions.
Decision 1336 takes effect from the date of issuance.
Comment: