VIMC REPORTED ALL-TIME HIGH PROFITS, RESTRUCTURING CONSIDERED

The Vietnam Maritime Corporation (VIMC) reported its profit exceeding US$130 million in 2022, for the second year in a row.

While the final figure was still not yet made public while under audit, VIMC, the country's largest State-owned maritime logistics corporation, said 2022 had been a good year for business.

Last year, VIMC's total shipping volume was estimated at 21.8 million tonnes, 13 per cent over the yearly target; cargo throughput via seaports was estimated at 124 million tonnes or 93 per cent of the yearly target; container volume was estimated at 5.8 million TEUs or 97 per cent of the yearly target.

That put the corporation's consolidated revenue at $653.9 million, 20 per cent over its annual objective and a 5 per cent increase over the previous year. VIMC’s earning in sea shipping was estimated at $81.2 million, a 71 per cent increase in the same period in 2021 and 44 per cent above 2022's target.

Once the financial audit is finalised, VIMC will likely be looking at a yearly profit north of $135 million, nearly 25 per cent above its set target, according to a statement released recently by the corporation.

VIMC operates a fleet of 59 ships, including four oil tankers (accounting for 5 per cent of VIMC’s total tonnage), 10 container ships (7 per cent of total tonnage) and 45 dry cargo ships (88 per cent of total tonnage). A majority of its fleet was either built or purchased prior to 2010 with an average service life of 20 years.

Restructuring

The corporation attributed recent success to restructuring efforts with a clear objective focusing on its core businesses and Việt Nam's booming export economy in the last decades.

VIMC identified its core businesses as sea shipping, port operation and maritime services.

In response to an earlier proposal by the corporation to reduce the State's share in VIMC from 99,47 per cent to 65 per cent in the near future, the Ministry of Industry and Trade said such a decision could not be made in a short time.

"VIMC is, directly or indirectly, involved in the management and operation of 14 seaports across the country and therefore, plays an instrumental part in the country's socio-economic development, as well as national security," said deputy minister of industry and trade Nguyễn Xuân Sang.

"The decision to reduce the State's share in the corporation must be thoroughly reviewed and studied," he said.

Commenting on the proposal, the Committee for Management of State Capital at Enterprises recommended that the State's share in the corporation remain the same at least for the 2021-25 period.

"Maintaining the State's shares in VIMC is to ensure the corporation will continue to play a leading role in the establishment and expansion of the country's supply and logistic networks, as well as efficient use of key resources," said a spokesperson from the committee.

The committee recommended the State maintain a minimum 65 per cent majority at the corporation in the future.

Source: VNS