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With the decision of the dominant power, VIMC currently owns stakes in 16 seaport enterprises and manages and operates more than 13,000 metres of berths, including QuyNhon port. Photo: VIMC

Destroying the Vinalines brand

As a leading national enterprise in the maritime sector, VIMC holds capital in 19 subsidiaries and 16 associates. In addition to deciding to keep the controlling power, this enterprise owns stakes of 16 seaport enterprises, manages and operates more than 13,000 metresof berths (accounting for nearly 30% of the total national berth meters), can ship more than 150 million tonnes of goods (accounting for more than 20% of the country). Of which, there are key ports of the country such as Hai Phong Port, Saigon Port, Da Nang Port and QuyNhon Port.

According to Le Anh Son, Chairman of VIMC's Board of Directors, VIMC hadmany consecutive years of losses, even standing on the edgeof bankruptcy due to aprolonged recession of the world’s maritime market. In addition, the fact that VIMC received a loss from the Vietnam Shipbuilding Industry Corporation (Vinashinlines) increasedlosses in shipping activities of VIMC as well as increased the burden on VIMC and member firmswhen they had to provide financial assistance to repair the old fleet, and handle Vinashinlines' ships that had stopped working for many years.

According to Son, by implementing drastic and comprehensive restructuring, buying banks' debts according to market principles; restructuring loans; eliminating underperforming companies; liquidating old ships, re-paying the fleet, reducing the focal point of the corporation, equitising member companies, the overall operations of the Corporation and the parent company had initially been balanced and profitable, especially the seaport sectorhad brought a profit of more than 1,000 billion VNDper year afterequitisation,compensating for the loss of sea shipping.

“The transformation to the joint stock model is an important step in VIMC’s operations, increasing the resources of the parent company - the corporation innovates the management system, improves service quality, and increases competitiveness. By 2030, VIMC will be a leading enterprise in Vietnam's maritime industry, with international competitiveness and participation in regional market sharing. In addition, the transition to a joint stock company with a new brand identity is a change of mindset, management innovation, increasing competitiveness for enterprises,” said VIMC's Chairman of the Board of Directors.

Still putting negative profits

It is easy to see the change of VIMC to operate as a joint stock company at this time has many unfavourable factors because the marine industry has been in difficulties due to a deep recession lasting more than 10years, and continuing to meet the "evil wave" brought by Covid-19.From the beginning of the year until now, the Covid-19 pandemic has had a significant impact on the maritime market. All trade and travel activities around the world have almost "frozen", reducing the transport market andthe turnover of the fleet fell sharply.

The current situation of the world maritime industry in general has been many difficulties and challenges that VIMC itself have to adjust its business plan, expected revenue in 2020 to reach 1,526 billion VND; negative pre-tax profit of 1,024.8 billion. Previously, VIMC set the revenue target at 1,555 billion VND; pre-tax profit was 51 billion VND.

As VIMC set a negative profit plan in 2020,VIMC General Director Nguyen CanhTinh said VICM was facing difficulties in production and business activities because many countries did not receive cargo ships due to the impact of the pandemic, reducing the transport market, and the revenue of fleets. In the future, sea transportation and maritime services of Vietnam National Shipping Lines would continue to face challenges, while the field of seaport operation slowed down. Next time, VIMC would continue to "bring new blood" in the fleet, divert investment by hiring/buying ships to exploit when the market is favourable, proceeding to join international shipping alliances to become a container transshipment unit in the region.

By 2025, VICM sets a target of more than 18 million tonnes of sea shipping, output shipping through ports of nearly 139 million tons, up 5%, revenue and more than 10,000 billion, consolidated profit of more than1,230 billion VND.