Vietnam's State Capital Investment Corporation (SCIC), which manages and invests state capital in enterprises, announced it would divest from 73 businesses in its first phase for 2023.
The freshly released list includes many notable names on the Vietnamese stock market like Binh Minh Plastics JSC (coded BMP), Vietnam Seaproducts JSC (SEA), Licogi Corporation (LIC), Pha Lai Thermal Power JSC (PPC), Hai Phong Thermal Power JSC (HND), and Quang Ninh Thermal Power JSC (QTP).
Among the companies listed, SCIC has successfully divested a 29% stake in Quang Ngai Road Management and Construction and JSC, 53% in Quang Binh II Road Repair and General Construction JSC, 65% in Quang Binh Road Repair and General Construction JSC, and 51% in Inland Waterways Management and Maintenance JSC No. 9.
SCIC's fresh list for divestment does not include major corporations like tech giant FPT and Vinamilk, the country's largest dairy product manufacturer.
Following the booming 2015-2018 period, the equitization of state-owned enterprises in Vietnam has seen limited results in recent years. This has made the domestic stock market somewhat less attractive than expected.
SCIC now invests in 119 enterprises, including 114 joint stock and five limited liability companies, with state capital of VND47.8 trillion ($2.03 billion), out of combined charter capital of VND166 trillion ($7.07 billion).
In 2022, the corporation's revenue reached nearly VND10.7 trillion ($455.7 million), up 51% from 2021 and 35% higher than the set plan.
SCIC recorded a pre-tax profit of over VND6.8 trillion ($289.6 million) last year, equal to 191% of its 2022 target.