Ben Kieu IT Co is now one of the most effective operators of Vinashin. It focuses on building and repairing around 10,000 ton vessels. The company, together with other companies under the Vinashin brand, has made great efforts in gaining a foothold in the shipbuilding market.
The company focused on developing and exploiting current equipment and technological infrastructure while paying attention to outlet expansion and product diversification based on the customers' requirements.
In late 1996, the company reportedly completed the first phase of a project to upgrade its own infrastructure, raising the company capacity of building 600-ton to 2,000-ton vessels.
"This is a turning point marking the company's development after 20 years of foundation and facilitating it to integrate into the market economy," said Ben Kien company general director, Truong Quoc Bao.
The company also poured investment into operating a line of 36mm alloy sheet hushing machinery and boring machinery and upgrading winching and lifting systems while buying more new equipment such as a semi-automatic welding machine, yet-compressor, and a lifting machine.
Thanks to adequate investment, a series of vessels built and repaired by the Ben Kien Company have been presented to both domestic and foreign markets and now run in international seaways, paving the way for the company to build greater load vessels, said Bao.
In the second quarter of 2002, the company completed the second phase of the project to continue upgrading infrastructure in a bid to meet the requirement of the market and integration trend.
In October 2003, Ben Kien got a license from Vinashin to carry out a project to set up a 50 TEU container shipbuilding area, which will then facilitate the company to build over 10,000 ton vessels.
Adequate investment, together with skilled and professional labourers who account for more than 90 per cent of the company's total labour workforce and help from foreign experts have contributed to the company's foothold as one of Vinashin’s leading shipbuilders in particular and in Vietnam in general. Thanks to this, the company reported a sharp increase in revenue from VND100 billion in 2000 to VND270 billion in 2004 and VND300 billion in 2005.
Despite its remarkable achievements, the company currently has to cope with numerous difficulties such as higher production costs and unfavourable market. Worse situation facing Vinashin as supporting industry fails to meet requirements for great load vessel building due to thin capital.
Vinashin, however, has to take effective measures to calm the situation. Firstly, the industry should concentrate on developing technology, infrastructure and the ability of its labour force.
In terms of capital, Vinashin is expected to receive better financial mechanisms which will make it easier to borrow capital for the implementation of long-term shipbuilding contracts, according to Bao.
Hien Hiep
Vietnamese
