Want to be in the loop?
subscribe to
our notification
Business News
NEW REGULATIONS ISSUED OVER OPERATION OF SCIC
The Government has issued two new decrees over the operation mechanism of the State Capital Investment Corporation (SCIC). The decrees prevent the SCIC from investing in companies of relatives but allow it to found subsidiary companies.
Under Decree No 147/2017/ND-CP, SCIC is not allowed to pump capital into buying stakes at enterprises, where the managers are related to the corporation’s chairman, members of the Management Board, controllers and general director, as well as deputy general director and chief accountant.
The relatives include spouses, natural parents, adoptive parents and natural son/daughter, as well as adoptive son/daughter, natural brother, natural sister, brother-in law and sister-in-law.
SCIC will not be allowed to contribute capital with its subsidiary companies to found joint stock companies, limited liability companies or implement business co-operation contracts.
The Decree No 148/2017/ND-CP allowed SCIC to found and contribute capital to subsidiary companies, including fund management companies, following the established laws.
The two decrees were issued and took effect early this week.
SCIC had a charter capital of VND50 trillion (US$2.2 billion). It was founded in 2005 and officially began operation in 2006, with an aim to enhance the efficiency of State capital at enterprises.
SCIC planned to earn a revenue of VND11.2 trillion and a pre-tax profit of VND8.3 trillion in 2017.
Its business report in the first half of this year, the latest one available on its official website, showed that SCIC earned a revenue of VND2.67 trillion in the period, dropping by VND3 trillion over the same period last year. The pre-tax profit also dropped by more than VND2 trillion to VND2.5 trillion.
As of June 30, SCIC’s total assets reached VND60.8 trillion.
SCIC was managing State capitals worth VND18 trillion in book value at 144 enterprises.
Source: VIR
Related News
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/CN40.jpg)
ESTABLISHING NATIONAL COMPREHENSIVE DATABASE FOR DIGITAL TRANSFORMATION
Vietnam's Ministry of Public Security is drafting the data law project to unify, synchronize and effectively use data for administration and social economic development, for digital government development and for administrative procedure reform.
![Card image cap](/uploads/news/FDI3%20%281%29.jpg)
CONGLOMERATES AID FOREIGN MANUFACTURING INVESTMENT
The manufacturing and processing sector is attracting major investment from abroad, thanks to the expansion of key conglomerates, especially from South Korea. With total revenues of about $16.2 billion and profit of $400 million last year, Hyosung Group, which works in textiles and garments, industrial materials, IT, construction, and chemicals, has expressed its plan to expand operations in Vietnam.
![Card image cap](/uploads/news/Eco8.jpg)
SPECIAL POLICIES PROPOSED TO DEVELOP THE SEMICONDUCTOR INDUSTRY
The draft law has proposed a number of outstanding policies to promote the development of the digital technology industry, develop the brand of Việt Nam's digital technology industry and develop domestic and foreign markets, as well as investing, purchasing and selecting suppliers of digital technology products and services using State budget capital.