A ship belonging to Vinalines. The company reported a 9 per cent year-on-year decline in its second quarter revenue, which stood at 239 million USD. (Photo: vneconomy.vn) Hanoi(VNA) - The Prime Minister has asked ministries and Government agenciesto support maritime shipping firms.
The PMinstructed the Ministry of Transport to collaborate with the Ministry ofIndustry and Trade, the State Capital Management Committee and other Governmentagencies to work with shipping companies – especially those with high shippingvolumes – to improve their performance in accordance with Document118/VPCP-KTN, issued by the Government Office on January 7, 2014.
At the same time, theMinistry of Transport was told to work with the ministries of Planning andInvestment and Finance, the State Capital Management Committee and otheragencies to help shipping firms use funding to develop their fleets.
Companies must alsohasten their equitisation and strengthen their association with both domesticand foreign partners to raise their productivity and efficiency.
The Prime Ministeralso assigned the ministries of Transport, Finance, Planning andInvestment and Justice, the State Bank of Vietnam, the State Capital ManagementCommittee and relevant agencies to studypolicies to bolster the quality of the nation's waterwaytransportation system and report back to the Prime Minister in the first quarterof next year.
Vietnamese shippingfirms, most of which are State-owned, have been performing poorly in recentyears due to ineffective corporate governance and rising competitionon international markets.
The Vietnam NationalShipping Lines Corporation (Vinalines), one of the biggest shipping companiesin the country, reported that its revenue in the second quarter of 2019 dropped9 percent year on year to 5.56 trillion VND (239 million USD).
At the end of thequarter, the company posted a loss of 496 billion VND, up 325 percent from theprevious year. It attributed the loss to the fact that the company earned lessfrom its dividend payouts and also failed to sell its assets and ships.
Vinalines now hasstakes in 20 companies and associates in 27 other firms. At the end of thesecond quarter, Vinalines recorded 2.05 trillion VND of cash and cashequivalents and 3.45 trillion VND in short-term assets. The company’s totalborrowings were worth 8.1 trillion VND, including 5.36 trillion VND worth ofbank loans.-VNA
