Vietnam hub establishes investment arm

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The Ho Chi Minh City administration announced Tuesday it has set up a financial investment company with a registered capital of VND5 trillion (US$262 million) to raise funds for city projects.

The state-owned Ho Chi Minh City Financial Investment Co. (HFIC), succeeding HCMC Urban Investment and Development, will be in charge of mobilizing capital from local and foreign individuals and institutions, issuing bonds, borrowing money from financial institutions, and investing in the city's projects.

The new company will also implement a pilot plan to take over the government's stakes in state-owned corporations and joint stock companies that were earlier state-owned firms under the city government.

The new agency's role is similar as that of the central government's investment arm, the State Capital Investment Corporation, which was created in mid-2005 to take capital ownership of thousands of the country's state-run enterprises.

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