SCIC wants to transform its business model and capital management like Singapore's Temasek.

On December 3, a workshop on promoting the SCIC model towards professional capital business and forming a Government investment fund was held.

Mr. Dinh Viet Tung, Deputy General Director of SCIC - Photo: NK

According to Mr. Dinh Viet Tung - Deputy General Director of SCIC, over the past 19 years, SCIC has achieved cumulative business results, with total pre-tax profit of 108,830 billion VND; budget contribution of 108,145 billion VND; average return on equity (ROE) of 13%/year.

Request for model transformation, improve operational efficiency

SCIC's revenue increased 52 times, after-tax profit increased 72 times, equity increased 17 times and total assets increased 12 times, the total value of the portfolio held up to now is over 200,000 billion VND (about 8 billion USD).

Thanks to that, SCIC has proven its effectiveness in managing and investing state capital, clearly demonstrating its role as a special economic organization, contributing to promoting the operational efficiency of enterprises after equitization. However, international experience and practice have raised the requirement to choose a model to transform SCIC.

According to Mr. Tung, Government investment funds (SWFs) are increasingly playing a key role in the financial system, providing support in crises such as the ability to inject capital, purchase assets and support key businesses.

The main operating model is fund management managed by the Government and the investment company model owned by the fund and invested in enterprises, such as the model of Temasek (Singapore) and Khazanah (Malaysia).

Citing the Temasek model, Mr. Tung said that this is a typical example of success in creating sustainable value for the country, a solid foundation for SCIC to refer to and learn from. The reason is that both SCIC and Temasek were established to separate the management function and state capital ownership in enterprises, to preserve and develop capital.

This company is a symbol of transparency, professional management and high investment efficiency. Learning from Temasek helps SCIC increase trust, attract investors and promote divestment, equitization and investment expansion; lessons from this model can be applied immediately such as transferring enterprises, increasing the independence of the board of directors and expanding investment channels, improving transparency and investing abroad.

Sharing about the model, Mr. Adrian Chung, Head of Temasek's External Affairs Department, said that with the model operating for 51 years, managing an initial portfolio of 354 million SGD, not only investing in the fields being invested but also investing in emerging economies, diversifying the investment portfolio, developing outside of Asian markets such as the US and UK to become a global investment organization.

In particular, the Government does not directly direct the company and no company has requested special treatment from the Government. Although 100% owned by the Singapore Government, the leadership members such as the Chairman, CEO and members of the Executive Board are not Government department personnel.

Restructuring state capital for more effective investment

From Temasek's experience, Mr. Tung said that Vietnam is aiming to become a high-income country by 2045, so to achieve this, it is necessary to enhance the role of the private economy, restructure state-owned enterprises, modernize the economy, promote innovation models, digital transformation, and develop large enterprises.

The goal of the transformation is to gradually develop SCIC into a professionally operating government investment fund like the Temasek model, focusing on restructuring state capital, investing in large enterprises with widespread influence, along with the technology, innovation, energy and infrastructure sectors. Thereby promoting foreign investment, supporting M&A enterprises, accessing core technology and improving national competitiveness.

Accordingly, the Deputy General Director of SCIC proposed solutions such as promoting the transfer of commercial enterprises to SCIC to concentrate resources and manage effectively; allowing the retention of profits for investment and increasing charter capital, having the function of handling bad assets and buying and selling debts. Perfecting institutions and legal frameworks, optimizing the organization and human resources such as appointing senior personnel with management capacity, independent experts and empowering them to build a competitive salary and bonus mechanism.

NGOC AN

Source: https://tuoitre.vn/scic-muon-chuyen-doi-mo-hinh-kinh-doanh-quan-ly-von-nhu-temasek-cua-singapore-20251203124258073.htm