Hanoi, December 7, 2016
—IFC, a member of the World Bank Group, and Vietnam’s State Capital Investment Corporation (SCIC) today signed a memorandum of understanding to support the continued improvement of corporate governance practices in SCIC’s portfolio companies. IFC will also help SCIC execute its divestment plan and explore co-financing opportunities in Vietnam’s agribusiness, services, and manufacturing sectors. This will contribute towards the government’s equitization process, help increase overall performances of SCIC investees, accelerate their growth, and attract more foreign investments.
Over the next two years, IFC will review and develop a corporate governance-improvement plan, leveraging international best practices for select SCIC portfolio companies. IFC will also conduct annual training programs for the corporation’s nominee directors on various aspects of corporate governance, including board effectiveness, board financial oversight, and transparency and disclosure.
“Corporate governance has always been an SCIC’s priority to improve the performance of its portfolio companies. With a portfolio of about 200 companies, we are conducting thorough assessments to strengthen corporate governance in these companies to improve companies’ value and ensure the state interest,” said Nguyen Duc Chi, SCIC’s Chairman. “With IFC’s support, we hope to learn from international best practices and find more investment opportunities in both domestic and overseas markets.”
IFC will also support the Vietnamese government’s equitization plan by purchasing equity interests in state-owned companies or by mobilizing capital from international buyers. The two parties will consider privatization opportunities on a case-by-case basis.
“Cooperation with SCIC is part of our efforts to support the equitization of state-owned assets and help further strengthen the private sector as a key driver for economic growth and employment in Vietnam,” said Vivek Pathak, IFC’s Regional Director for East Asia and the Pacific. “We are sure that our worldwide experience and networks will be of benefit to the SCIC.”
2016 marks 60 years of IFC’s financing and advisory activities to promote the private sector in developing countries. IFC has worked on the ground in Vietnam over the past two decades to help the private sector realize its potential and act as an engine of economic growth, contributing to shared prosperity nationwide. From its first direct investment in the country in 1994, IFC has to date catalyzed $5.6 billion of investment to support 120 projects in Vietnam that span infrastructure, manufacturing, agribusiness, renewable energy, and the financial sectors.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
About the State Capital Investment Corporation
Incorporated in 2006 under the Decision of the Prime Minister, SCIC is acting as the state ownership representative at companies and investing in key industries/sectors of the economy while respecting to the market principles.
SCIC is currently managing a portfolio of various companies that are operating in diversified industries of the economy such as financial services, energy, industry, telecommunications, construction, transportation, consumer goods, healthcare, IT...
By November 2016, the total amount of state capital under SCIC's management has reached over 18,000 billion dongs, the estimated market value of which has reached about 100,000 billion dongs.
By 2020, SCIC is targeted at becoming the government's strategic investor and a regionally sizable financial group and an effective drive to uphold the state sector in key industries and sectors of the economy.