Last updated: Thursday, May 23, 2013
Minh Giang Private Enterprise: Riding the Wave with Vietnam Maritime IndustryPosted: Wednesday, April 25, 2012
Founded in 2002, Minh Giang Private Enterprise is a top supplier of shipbuilding equipment and materials and suspension bridges in northern provinces. By promoting internal resources, financial resources and human resources, Minh Giang always firmly travels with the Vietnamese maritime industry to ride the wave. Vietnam Business Forum interviewed Mr Nguyen Huy Truong Giang on the company’s successes in the past years.
Economic slowdown in 2011 caused adverse impact on the business community but Minh Giang Private Enterprise still stood firmly and asserted its position on the market. How do you assess your company’s successes?
Global economic recession adversely impacted Vietnamese businesses. Most struggled to live through difficulties, especially shipbuilders. Ocean shipping also confronted hardships because of fluctuant inputs like higher fuel, labour, repairing and maintenance costs plus shrinking demand. Hence, in some first months of the year, a series of shipbuilders, including top-rate ones, had to suspend operations. Many foreign buyers cancelled orders, abandoned their ships, or asked for a delay in delivery. And, global shipping volume declined significantly.
Before those difficulties, Minh Giang adopted a right direction: Trying to capitalising on internal resources to stand firmly and developing on the market. In 2011, the enterprise made revenues of more than VND20 billion, earned a profit of more than VND3 billion and paid nearly VND1 billion to the State Budget. In addition, livelihoods of all employees are guaranteed with the average pay of VND3 - 5 million each.
Specially, last year, Minh Giang was rated a Top 500 most prestigious enterprise in Vietnam. Currently, the enterprise is applying the ISO 9001-2008 international standards and is preparing to implement the ISO 14000 standards. This is a significant success of the company on international and domestic maritime markets.
What made those successes?
These results were accrued from the company’s efforts to promote its capacity. It anticipated the problem. Thus, it spent a limited resource on building ships and focused on repairing and maintaining ships while creating strategic cooperation mechanisms to keep up with continuous growth and assert the market position.
Apart from the wisdom of leaders, the success of Minh Giang Private Enterprise was resulted from the enthusiasm, knowledge and unity of employees.
Not only that, the employees frequently fosters professional knowledge and skills, applies advanced modern technologies to satisfy customers’ requirements for product quality and services. Every year, the company organises training courses to improve professional knowledge, learn and access international quality management systems.
In particular, the choice and trust of customers is the key to success of Minh Giang.
As a senior expert in maritime and shipbuilding sectors, what is your opinion about Vietnam’s marine economic development potentials? What should Vietnam focus on in the coming time?
Its coastline stretching more than 3,000 km is huge advantages and potentials for marine economic development. The marine industry in general and the shipbuilding sector in particular are assigned the critical mission of developing economy and protecting the water sovereignty of the country. Currently, the maritime economy has contributed 48 - 49 percent of GDP.
With some 50 shipyards, Hai Phong City is a major shipbuilding centre in Vietnam where big ships, specialised vehicles and apparatuses for national defence and oil and gas production are produced. Shipbuilders have created an impression on domestic shipbuilding industry development and made important contributions to the city’s social and economic development. Minh Giang Private Enterprise plays a significant role in that common task.
Nevertheless, the Vietnamese maritime industry is far behind the world and shipbuilding quality is also not on par with developed countries. To catch up with global trends, the Vietnamese maritime industry first of all needs to take advantage of the sea and local dockyards.
Secondly, it needs to focus on specialising shipbuilding to meet the demand and limit foreign ship import. It also zones out ship repairing and building areas to generate highest efficiency.
Thirdly, it must have seaport development plans to utilise geographic advantages and develop synchronous infrastructure for ocean shipping and seaport development.
Could you talk about major objectives of the company in the coming time?
The Resolution 9 on "Vietnam Sea Strategy" adopted at the 4th Congress of the Central Party Steering Committee (term 10) states: Maritime economy will contribute 53-55 percent of the country’s GDP and 55 - 60 percent of exports by 2020. This is an important task of the Vietnamese maritime industry. As a leading supplier of steel cables, nylon cables, marine equipment and materials, a producer of mechanical products at the service of handling and lifting freights, a builder cargo ships, salvage ships, and suspension cables, Minh Giang will persist in its chosen path to assert its position and name.
2012 will be a difficult and challenging year but it will also open up opportunities for marine businesses in Vietnam. Minh Giang will continue upholding its success and strive for higher growth to deserve the title of Top 500 prestigious enterprise in Vietnam.