Saturday,  Mar 28, 2020,15:16 (GMT+7) 0 0
HFIC enhances capital mobilization for breakthrough projects
Monday,  Mar 16, 2020,15:45 (GMT+7)

HFIC enhances capital mobilization for breakthrough projects

Saigon 2 Bridge is one of HCMC’s important projects with HFIC involvement - PHOTOS: HFIC

HCMC – HCMC Finance and Investment Company (HFIC), formerly the HCMC Investment Fund for Urban Development Project (HIFU), is a wholly State-owned company with charter capital of VND5 trillion. It targets to mobilize capital from domestic and foreign organizations and individuals to invest directly or indirectly into the city’s priority sectors.

Between 2010 and 2019, HFIC raised over VND2.625 trillion from official development assistance (ODA) capital and VND840 billion from domestic sources. The enterprise mobilized more than VND2.134 trillion from direct foreign investment capital and VND1.832 trillion from syndicated loans. Besides this, HFIC cooperated with the HCMC Department of Finance to issue over VND18.1 trillion worth of municipal bonds, helping local authorities balance the city’s budget. Overall, HFIC has mobilized more than VND7.431 trillion to develop key infrastructure projects in the city over the past 10 years, contributing to the success of the city in implementing development goals and paving the way for welfare programs.

The firm has invested in key projects in the city, such as Hiep Phuoc New Port, Thu Duc BOO water plant, Kenh Dong water plant, Tan Phu Trung water plant and Saigon 2 Bridge. In addition, it has provided funding for outstanding projects like Hanoi Highway expansion, 36 first- and second-grade water pipes of Saigon Water Supply Corporation, University of Medicine and Pharmacy of HCMC, heath equipment of People’s Hospital 115, Trung Vuong Hospital and Trieu An Hospital. For the education sector, HFIC has funded Long Son kindergarten, HCMC University of Technology and Education, Ton Duc Thang University, International University, University of Economics and Law, Saigon University and Nguyen Tat Thanh University.

HFIC’s operation effectiveness is seen through its revenue growth of 13.94% a year in the 2013-2018 period. Between 2010 and 2019, its pretax profit grew 18.45% per year, reaching a combined VND6.054 trillion, while it contributed more than VND3.725 trillion to State coffers. Further, a 2018 report by the Ministry of Finance shows that HFIC had the most effective operation in the system of its 42 local investment development funds, making up 21% of the combined equity. HFIC accounted for 44% of the mobilized capital, 37% of the total outstanding loans and 86% of the total portfolio.

According to economists, HFIC is the strategic financial institution of the city, which can use reciprocal capital to mobilize infrastructure investment. In the coming time, HFIC will continue investing and providing funds for projects belonging to the city’s development and demand stimulus programs, major industries and technology innovation sectors.

Local authorities have assigned HFIC to coordinate with consultants and relevant departments to map out a project for turning HCMC into an international financial hub. To implement this task, HFIC will spare no effort to promote its role---serving as a bridge to drive investment capital flows into infrastructure, health, education and environment projects, contributing to the city’s sustainable development.

HFIC has invested in equipment at International Neurosurgery Hospital


Share with your friends:         
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.