State investment firm estimates profit 86% higher than year target

Vietnam's State Capital Investment Corporation (SCIC), which manages and invests state capital in enterprises, has estimated a pre-tax profit of VND6,661 billion ($283 million) in 2022, 86% higher than the year target.

The corporation's 2022 revenue is estimated at VND10,478 billion ($445.4 million), 33% higher than the target approved by the Commission for the Management of State Capital at Enterprises, according to an SCIC report.

According to SCIC, three major difficulties in 2022 are seeking approval for its charter capital expansion, selling equity, and equitizing single-member limited liability companies.

The corporation said that its portfolio includes many businesses with difficulties selling equity; they have done this several times but in vain.

Meanwhile, the equitization of single-member limited liability companies has undergone difficulties and obstacles because many are still waiting for approval of their business restructuring plans.

SCIC said it will continue restructuring companies it is investing in.

In August, the company reported an after-tax profit of VND3,310 billion ($141 million) in the first half of 2022, down 42% year-on-year, and revenue of VND4,915 billion ($210 million), a 29% rise compared to the same period last year.

As of June 30, 2021, SCIC's business portfolio included 128 companies with a total state capital of $2.02 billion, while its total charter capital reached $6.76 billion.