According to a draft decree on organization and operation of the State Capital Investment Corporation (SCIC) being compiled by the Ministry of Finance, the SCIC is considered a special economic organization with 100% of state capital operating in the form of one-member limited liability company.
If the draft decree is passed, the SCIC would become a “super” corporation with a charter capital of VND 50 trillion (approximately USD 2.6 billion).
Under the draft decree, the SCIC would sell out state capital portions at enterprises in which the State does not need to hold capital and invest the proceeds in important industries and sectors. The draft decree even allows SCIC to sell under par value shares of enterprises which have suffered from loss for three consecutive years, have a book value of the state capital portion lower than the capital amount actually contributed by shareholders or capital-contributing members or have lost all capital.
The SCIC would also be permitted to organize auction or make competitive offers to sell its shares or contributed capital portions to other shareholders or capital-contributing members during the period in which share transfers are restricted under the Enterprise Law.-