It is often said that the “health” of enterprises is essential for sustainable development. This is true for the development of Vietnamese enterprises during economic integration. Vietnam Business Forum’s reporter Luu Hiep interviewed Mr Mai Van Phuc, Director General of Vietnam Shipping Lines (Vinalines), on its preparation to become a group.
The Vietnamese maritime market is most attractive to investors; do you think that the open market will make the pie smaller for you?
The market is big and highly competitive. But it has market segments. We know our strengths and are in a position to make stable steps. The market share of Vinalines continues to grow. Vinalines has improved under international standards and competitiveness to meet the demand of development.
The open market will encourage foreign businesses to participate in maritime service and competition will be more difficult. However, Vinalines has the advantage of understanding the “home court.” With a half-century of experience, we consider integration an exam to join the playing field with other big enterprises. Vinalines has reorganized its management and operation, and upgraded staff to meet international standards. Our 35,000 staff members are determined to make Vinalines a strong brand in the world market and the mainstay of Vietnamese maritime service.
Most Vietnamese seaports are small and unsuitable for big ships. How can Vinalines overcome that weakness?
Vinalines will make further investments to improve existing seaports and, at the same time, build new ports in Dinh Vu (Haiphong), Cai Lan (Quang Ninh, Hiep Phuoc (HCMC), Cai Mep (Thi Vai), Ba Ria (Vung Tau), Vung Tau container port (Ben Dinh – Sao Mai) and Lach Huyen deep water port (Haiphong). The network of seaports will support cargo volume of 50-55 million tonnes by 2010. Vinalines will also mobilize resources to build Van Phong (Khanh Hoa) into a big and modern international transit port.
It is reported that Maritime Group will be soon established, what is your plan?
We plan to establish the Maritime Group in early 2008. Therefore, international cooperation is important to develop a dynamic and sustainable Vinalines in the region and the world. So far, Vinalines has joint ventures with SSA group (US) in Cai Mep container port and some berths in Cai Lan port, with Maersk (Denmark) in Upper Cai Mep container port, and with PSA (Singapore) in Thi Vai port. Vinalines also has joint ventures with Japanese groups such as K’lines, NYK, MOL, in shipment and service, and with STC (Netherlands) in training human resources for maritime service. Every year, Vinalines sends staff members to study in the Netherlands, the UK, Japan, France, and Australia. It also opens branches and representative offices in the region and other parts of the world to boost the operation of its fleet and business activities.
To improve its competitiveness and economic integration, Vinalines has developed logistics and full services in all three key economic regions of Vietnam: cargo handling and transport, storage, distribution and ICD. Together with foreign partners, it will establish maritime service networks and representative offices in major import-export markets of Vietnam. Vinalines will also invest in such sectors as finance, stock market, insurance, joint stock and joint ventures in logistics, ship repair and building, infrastructure, real estate, fuel import-export, maritime equipment and materials.
In addition, Vinalines will join with other Vietnamese economic groups (Vinashin oil and gas, Bao Viet, Vinacomin, Vinasteel) to fully exploit the potential of the sea-based economy and contribute to national economic development.
In brief, how would you describe the performance of Vinalines in the last year?
Last year, Vinalines made remarkable progress in all fields: Total shipment of 23 million tonnes and 59.8 billion Tkm; overseas shipment of 19.7 million tonnes and 55 billion Tkm; domestic transport of 3.4 million tonnes and 4.7 billion Tkm; container transport of 578,743 TEUs; port handling of 41.5 million tonnes; total turnover of VND11,241 billion; profit of VND551 billion; completing State revenue.
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