Hanoi Transerco: First Holding Company in Hanoi
At a ceremony to launch the Hanoi Transport Corporation (Hanoi Transerco) in Hanoi on August 5, 2004, Nguyen Doan Dung, general director of the corporation, said that after two years of reform, the company had affirmed its Hanoi Transerco trademark. This is one of the first corporations in Hanoi to pilot the holding model.
Hanoi Transerco is the parent company formed on the basis of the reorganisation of the Hanoi Public Transport and Service Company. From 2001, the People’s Committee of Hanoi issued a decision to establish the Hanoi Public Transport and Service Company based on the merger of four companies, namely the Hanoi Bus Company, the Southern Hanoi Passenger Transportation Company, the Hanoi Tourist Car Company and the Hanoi Tram Company. With its outstanding development, after just two years, Transerco has not only affirmed its trademark in the market but also completed its business targets for the first part of the year.
The corporation is involved in many fields, but predominantly specialises in public passenger transportation. It now has ten member enterprises, nine affiliate companies and four other allied companies. The new business model will help increase the effectiveness and competitiveness of State-owned enterprises in the transport service by separating State administrative management functions from business and production management functions of enterprises. Hanoi Transerco has developed concrete projects to maintain its production in 2004 and create a foundation for long-term development. Accordingly, the corporation will concentrate on building business strategies, reorganising its apparatus in line with a modern model, perfecting its financial management system, developing professional managers and workers and creating the enterprise’s cultural environment.
One of the most successful activities of Hanoi Transerco is the operation of the bus system in Hanoi, which was rated as one of the top ten events in the capital city of Hanoi from 2001 to 2003. As well as great investment efforts of the city and the organisation and management of the Hanoi bus system, the corporation has gained the trust of its customers, which has helped the promotion of public transport in the city. Currently, Hanoi’s buses transport more than 20 million passengers each month, much more than the number of passengers in a whole year in the not so distant past. Everyday, more than 150,000 people in Hanoi use public transport instead of private-owned means, such as motorbikes and bicycles. This demonstrates that the corporation has greatly contributed to the success in developing the urban traffic system in Vietnam.
Nguyen Doan Dung, general director of Hanoi Transerco, said that from 2005, the corporation would reorganise its production activities. The parent company will do business in many fields but affiliate companies would specialise in just one or two fields depending on the orientations of the corporation in developing their potential and advantages. At the same time, the corporation will continue to equitise its affiliate companies. Gradually, Hanoi Transerco will shift its public enterprises to trading public products and services according to orders or auctions of the State. The parent company will become a prestigious financial investment company, focusing on affirming its trademark and competitiveness of products during international economic integration. Dung stressed that Hanoi Transerco’s business activities were successful due to seven basic principles; the clarification of obligations and tasks; leadership decentralisation; effective management; the creation of development opportunities and orientations for each qualified individual; high quality services; effective use of allocated resources; and trust. “We have always considered the quality of services and satisfaction of passengers the targets of our activities,” affirmed Dung.
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