Military Enterprises - Important Force for Developing Marine Economy

9:46:54 AM | 30/12/2019

The army is always a vanguard force in economic construction and development. Such sectors as port services, logistics, oil and gas, marine construction and mechanical engineering are strengths of military enterprises which have contributed significantly to the economic development strategy in general and the marine economy strategy in particular.

Major General Tran Dinh Thang, Director of the Economic Department under the Ministry of Defense, said, doing business is a strategic task of the army. Given the nature of the revolutionary army, military enterprises play a very important role in economic production and contribute many resources to national defense and national construction.

In fact, for many years, assigned military - defense tasks, military enterprises in the Navy are typically stationed and firmly rooted in strategic areas, especially in sea waters and islands far from the mainland. Navy enterprises completed production targets of defense products such as building and repairing ships and weapons and equipment, loading and unloading defense goods, and constructing maritime and island works. They all are working at a profit, increasing tax payment to the State Budget, ensuring stable income for employees, enhancing their prestige and competitiveness, expanding the market in the fields of seaport services, logistics services, oil and gas services, offshore constructions, mechanical engineering, ship building and oil platform repairing.

In addition, some businesses such as Company 128 and Truong Sa Seafood Co., Ltd have performed very well their duties: Oil and gas defense service, port operation services, oil rig repairing, patrol-fishing, public utility, logistics services for fishermen in the Spratly, defending sovereignty of territorial waters and islands, search and rescue, fisherman support.

In addition, like some other companies, Saigon Newport Corporation has become Vietnam's largest and most professional container terminal operator, which provides a wide range of seaport services such as stevedoring services, logistics services, maritime services, rescue, pilotage, real estate, office buildings, civil construction engineering, military construction and multimodal transport. The corporation has helped affirm Vietnam's name in marine economy and logistics services. Moreover, it has made Vietnam’s name present on the map of 21 largest container terminal complexes by cargo throughput in the world.  Especially in Ho Chi Minh City, Saigon Newport Corporation’s facilities are securing about 16-18% of the city's tax revenue. This is a model example of successful economic-defense combination in Vietnam.

Shipbuilders, in addition to completing the task of building and repairing military ships, have also built and repaired vessels and waterway means for search and rescue force, economic sectors and localities throughout the country. Shipbuilders reported business growth of over 30% in the last five years and their profit margin to revenue was over 10%. While paying good taxes to the State coffers, they also ensure stable employment for tens of thousands of workers.

Determined to develop the maritime industry into a spearhead economic sector in Vietnam's Sea Strategy in the next 10 years, the Government has adopted a strategy to focus on strong development of shipping services, port development, and logistics development to support maritime activities. And, to successfully realize this strategy, the contribution of military businesses is indispensable.

Thu Ha