Mao Khe Coal Mechanical JS Co. Sees High Effectiveness after Equitisation

Within a strategy for equitisation of the Government and the Vietnam Coal and Mineral Corporation, the Mao Khe Mechanical Company was equitised in early 2005. After one year’s operation as a joint stock company, the Mao Khe Coal Mechanical Joint stock Company witnessed an increase in its revenues, which reached VND 57 billion in late 2005.

 

Income of its workers alone increased from VND 2.7 million per month in 2004 to VND 2.9 million in 2005. The company‘s revenues increased by 18 per cent per annum.

 

In its early days as a joint stock company, it was difficult for it to get loans from banks because of complicated procedures. As a result, the company faced many difficulties in three months until it could get loans from banks. In addition, the company had to cope with unfair competition from private companies.

 

Nguyen Thi Thanh, director of the company, said to overcome the difficulties, the Mao Khe Coal Mechanical Joint stock Company had to focus on developing its production, recruiting more young qualified workers. The company has recruited its workers’ sons and daughters, who could inherit occupation from their parents, thus helping save training costs for the company.

 

According to Thanh, however, her company’s biggest attention is to find those items which are needed by the market but not to manufacture all goods items. Therefore, the company’s investment orientations are based on the market study, so the company can manufacture those goods its competitors are yet to manufacture. In addition, the company has invested in expanding its production, improving the quality of products to meet the demand for heavy industry and shipbuilding. In two years (2004-2005), the company invested more than VND 3 billion. So far, it has invested around VND 10 billion. “We want to invest more but we cannot afford materials, which have to be imported from Germany, Spain and China. The mechanic industry is featured long payback period, so I wish there are specific policies for the mechanic industry in general and our company to develop in a sustainable manner.”

 

Thanh said the company was expected to be listed on the stock market in 2007.