HANOI – The Vietnam Association of Financial Investors (VAFI) has petitioned the HCMC government and the Ministry of Finance not to allow the State Capital Investment Corporation’s (SCIC) to join three major infrastructure projects in the city, citing the corporation’s lack of expertise.

SCIC late last month was approved by local authorities to be the investor for the North-South Route and the Hiep Phuoc urban port area to replace current ports in the city. The corporation was also approved to construct the complex of Financial Center and International Exhibition Center on 40 hectares in Thu Thiem New Urban Area with a total investment of US$3 billion.

The investors’ association said that SCIC was short of experience in the fields of business administration and basic construction to develop such large projects.

SCIC is a young financial organization under the Government’s administration with most of its staff being civil servants while the projects require business experience and high-tech knowledge.

VAFI therefore suggested the city choose a consortium of large local and foreign investors to facilitate capital mobilization and project exploitation, if the business efficiency of such projects are to be attained. State capital should not be used for commercial projects or to raise the State stake in unnecessary sectors, they said.

VAFI said that SCIC as a financial management corporation holding State stakes in hundreds of State-turned-shareholding concerns has not done its job well, so its direct involvement in such infrastructure projects would be unviable.

The corporation will find it hard to perform better than companies in the infrastructure industry, VAFI explained, adding that few financial corporations in the world had succeeded in direct investment projects.

VAFI suggested SCIC stick to its strategic task, investing in sectors enterprises do not want to so as to enhance the public welfare. SCIC, on behalf of the State, should provide credits to help small and medium enterprises and private firms, especially in rural areas.

SCIC should also cooperate with the ministries of transport and health to invest in bus routes and hospital projects instead of competing with other enterprises in commercial projects, VAFI said.