SCIC booked a hefty profit in 2016 thanks to the sale of Vinamilk shares. Photo: Internet
State Capital Investment Corporation (SCIC
), the Vietnamese government’s sovereign fund, booked a net profit of 15.83 trillion dong ($700 million) in 2016, up 97% from a year earlier, thanks to the unloading of Vinamilk
SCIC’s return on equity (ROE) stood at 19.9%, according to information announced at a conference on Jan. 10.
The firm last month raked in 11.3 trillion dong ($500 million) from selling a 5.4% stake of Vietnam Dairy Products JSC (Vinamilk) to Singapore-based Fraser & Neave, 28 times the cost at which SCIC bought Vinamilk shares.
SCIC sold shares in 73 companies last year, booking proceeds of 16.11 trillion dong ($713 million), much higher than the initial cost of 3.08 trillion dong ($136.4 million).
Established in 2005, SCIC manages a portfolio of companies that operate in a wide range of sectors including finance, energy, manufacturing, telecommunications, construction and information technology.
Under a government-approved plan, the firm is mandated to divest from 10 profitable companies that include Bao Minh Insurance, FPT
Telecom, Vinamilk, Vinare, Tien Phong Plastics, Binh Minh Plastics and FPT Corp.