HCM City launches own investment fund

HCM CITY — HCM City yesterday officially inaugurated its own finance and investment company, aiming to enhance the city's State-owned capital management and investment effectiveness.

HCM City Finance and Investment State-owned Company, formerly HCM City Investment Fund for Urban Development (HIFU), has a charter capital of VND5 trillion (US$315 million) and operates in the form of a holding company.

The city People's Committee authorised HFIC to represent, on a trial basis, the ownership of State capital in State-owned enterprises and joint stock companies that were previously State-owned under the management of the HCM City People's Committee, according to HFIC Chairwoman Ngo Kim Lien.

HFIC will mobilise capital from local and foreign individuals and institutions through channels such as issuing bonds and borrowing money from finance and credit organisations and entrusted capital resources. The company will make both direct and indirect investments in the city's prioritised sectors.

HFIC will issue municipal and project bonds under the city's authorisation.

Social and technical infrastructure development projects and other key economic projects under the city's socio-economic development programmes may obtain loans from the company.

Its other functions will also include the provision of financial services and investment consultancy. During the inauguration ceremony, HFIC concluded two loan contracts, one to fund VND100 billion to Ton Duc Thang University for its VND400 billion development plan and the other to provide VND85 billion for a new VND141 billion factory of Viet Nam Electrical Cable Joint Stock Company. The terms for both loans will be seven years.

HCM City was first among the country's cities and provinces to put HIFU into operation in May 1997 with an initial charter capital of VND202 billion. The figure increased to VND2.113 trillion at 2009's end. — VNS