The Government stipulates cases that are not invested by SCIC

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State Capital Investment Corporation (SCIC). Photo: Internet

The Decree amends and supplements principles of capital investment of the State Capital Investment Corporation (SCIC). Especially, cases that are not allowed to be invested by SCIC, including investment, capital contribution, share purchase and purchase of all other businesses of which the manager and representative are wife, husband, birth father, adoptive father, birth mother, adoptive mother, birth children, siblings, brothers in law, sisters in law of president and board of members, controller, General Director, Deputy Director, chief accountant accountant; capital contribution with subsidiaries to establish joint-stock companies, limited liability companies or to perform business cooperation contracts.

The Decree also stipulates that the SCIC is actively is to use business capital to invest in projects, fields and sectors in accordance with following principles: provisions of current law, in accordance with the SCIS’s development strategies, projects and plans which were approved by competent agencies; effective investment in line with SCIC’s capital resources; ensuring the SCIC’s capital in investment.

At the same time, key infrastructure works and projects which need to be supported and invested by the State, the Corporation shall act as a financial investor and mobilize domestic and foreign capital to implement.

The determination of the starting price when selling State capital has also been amended. Specifically, the determination must fully reflect the actual value of the State capital in business, including the value created by transfer and allocation of the legal land use right in accordance with the law on land, the value of intellectual property rights and other intangible property (if any) of the business in accordance with the law at the time of capital sale.

Regulations of organization and operation of SCIC

The Government issued Decree 148/2017/ND-CP on Regulations of organization and operation of SCIC

According to regulations, SCIC organizes and operates under the form of a one member limited liability company with 100% of charter capital owned by the State in accordance with the law for businesses and this Decree.

SCIC has its own legal entity, seal and logo, and is entitled to open VND and foreign currency accounts at the State Treasury, and domestic and foreign banks in accordance with the relevant laws.

SCIC's charter capital is VND 50,000 billion.

SCIC's main business lines are investment and management of investment capital according to the tasks assigned by the Government and the Prime Minister; receiving and implementing the right to represent state ownership in businesses according to the Government's provisions; arranging, equitizing and selling State capital invested in businesses which have been received according to current provisions.

The Government stipulates that the SCIC has rights: selecting and deciding the field and form of capital investment and business in accordance with the market principles, ensuring efficiency, profitability and compliance with the regulations of law; capital and assets contribution and to domestic and foreign investors for business cooperation; taking initiative in deciding to invest more capital and sell capital in enterprises transferred from ministries and ministerial-level agencies.