Vietnam Dairy Joint Stock Company (Vinamilk) wants to reduce Stateowner-ship in enterprises after equitisation to create conditions toincrease their self-management and competitiveness for furtherdevelopment.
This was one of the measures proposed by Vinamilkduring a working session between the company and a National Assemblydelegation led by Vice Chairwoman Nguyen Thi Kim Ngan on June 29.
VinamilkCEO and Director General Mai Kieu Lien said it was necessary to clarifythe role of State ownership representatives and the board of directorsat joint stock companies to help tackle existing obstacles.
Some 45.06 percent of Vinamilk's shares are currently held by the State through State Capital Investment Corporation (SCIC).
Ithad been pointed out that the SCIC's rights of operation of the companyhad reduced the command of the board of directors over the managementof the operations of the company, she said.
She cited thecommercial transaction to buy Dalat Milk as an example. Vinamilk couldnot buy Dalat Milk due to a delay caused by presenting a proposal andseeking the SCIC's permission.
Each year, Vinamilk losesestimated profits worth 50 billion VND (2.3 million USD) thanks to thefailure of that deal, according to Lien.
"It often take time forbusinesses, particularly those in which the State holds a largeproportion of capital, to make decisions on important issues as theyhave to wait for opinions from the representatives of the Stateownership," she was quoted as saying by national broadcaster VietnamTelevision.
"Therefore, it affects the operational efficiency ofbusinesses, particularly when they have to face fierce competition fromothers," she added.
NA Vice Chairwoman Ngan remarked that allrecommendations from businesses would be carefully considered. Anyregulation that caused difficulties for businesses would be amended, shestressed.
Shareholders equal
"The State is just like anyother shareholder at enterprises, and all shareholders are treatedequally in the eyes of law. Hence, it is not necessary to seek theState's opinion whenever a decision should be made in connection withthe development policies of enterprises," she pointed out.
VinamilkCEO Lien said the company wished to have a capital managementmechanism, which can be operated in line with the Enterprise Law and theLaw on Securities, as well as the company's regulations.
"We just want to have more power to make decisions on important issues relating to the operation of the company," she noted.
"Itis also necessary to reconsider the extent of the State ownership in ajoint stock company to harmonise the interests of related parties,particularly in companies operating in the fields of diary and food, inwhich the State should not hold a large share of capital," she observed.
Inthe 10 years since it was equitised, Vinamilk saw revenues grow by 22percent a year on average. Last year its revenues were nearly 35trillion VND (1.61 billion USD) , or 8.3 times up from the 2004 figure.
This year the target approved by shareholders is 38.424 trillion VND.
Thecompany's capital and assets have also increased many times since 2004.For instance, its charter capital has risen from 1.569 trillion VND toover 10 trillion VND.
Vinamilk's market cap is over 5 billion USD, making it the second largest company in the Vietnamese stock market.
Vinamilkis the largest dairy firm in Vietnam with a 53 percent market share inthe liquid milk segment, 84 percent in yogurt, and 80 percent incondensed milk.
Furthermore, the company has been successful indeveloping its export markets, shipping over 200 million USD worth ofproducts to 31 countries and territories. Average export growth in thelast 10 years has been 17 percent a year.
The key export markets are in the Middle East and Asia, and the company seeks to expand into Europe, Africa, and South America.
Exports have accounted for 8-24 percent of revenues in the last decade.
To develop is dairy sources, Vinamilk has signed agreements with farmers to buy 650 tonnes of fresh milk every day.
This has been growing by 8.4 percent in volume terms and 21.8 percent in value terms every year.
The company now has seven farms and has built two new farms with 24,000 heads of cattle.
Atthe meeting, Vinamilk urged the National Assembly to reconsider whatstakes the State must hold in joint stock companies so that all partiesbenefit. The Government still holds a majority stake in most joint stockcompanies, especially in the dairy and food sector, which is notnecessary, according to Vinamilk.-VNA
This was one of the measures proposed by Vinamilkduring a working session between the company and a National Assemblydelegation led by Vice Chairwoman Nguyen Thi Kim Ngan on June 29.
VinamilkCEO and Director General Mai Kieu Lien said it was necessary to clarifythe role of State ownership representatives and the board of directorsat joint stock companies to help tackle existing obstacles.
Some 45.06 percent of Vinamilk's shares are currently held by the State through State Capital Investment Corporation (SCIC).
Ithad been pointed out that the SCIC's rights of operation of the companyhad reduced the command of the board of directors over the managementof the operations of the company, she said.
She cited thecommercial transaction to buy Dalat Milk as an example. Vinamilk couldnot buy Dalat Milk due to a delay caused by presenting a proposal andseeking the SCIC's permission.
Each year, Vinamilk losesestimated profits worth 50 billion VND (2.3 million USD) thanks to thefailure of that deal, according to Lien.
"It often take time forbusinesses, particularly those in which the State holds a largeproportion of capital, to make decisions on important issues as theyhave to wait for opinions from the representatives of the Stateownership," she was quoted as saying by national broadcaster VietnamTelevision.
"Therefore, it affects the operational efficiency ofbusinesses, particularly when they have to face fierce competition fromothers," she added.
NA Vice Chairwoman Ngan remarked that allrecommendations from businesses would be carefully considered. Anyregulation that caused difficulties for businesses would be amended, shestressed.
Shareholders equal
"The State is just like anyother shareholder at enterprises, and all shareholders are treatedequally in the eyes of law. Hence, it is not necessary to seek theState's opinion whenever a decision should be made in connection withthe development policies of enterprises," she pointed out.
VinamilkCEO Lien said the company wished to have a capital managementmechanism, which can be operated in line with the Enterprise Law and theLaw on Securities, as well as the company's regulations.
"We just want to have more power to make decisions on important issues relating to the operation of the company," she noted.
"Itis also necessary to reconsider the extent of the State ownership in ajoint stock company to harmonise the interests of related parties,particularly in companies operating in the fields of diary and food, inwhich the State should not hold a large share of capital," she observed.
Inthe 10 years since it was equitised, Vinamilk saw revenues grow by 22percent a year on average. Last year its revenues were nearly 35trillion VND (1.61 billion USD) , or 8.3 times up from the 2004 figure.
This year the target approved by shareholders is 38.424 trillion VND.
Thecompany's capital and assets have also increased many times since 2004.For instance, its charter capital has risen from 1.569 trillion VND toover 10 trillion VND.
Vinamilk's market cap is over 5 billion USD, making it the second largest company in the Vietnamese stock market.
Vinamilkis the largest dairy firm in Vietnam with a 53 percent market share inthe liquid milk segment, 84 percent in yogurt, and 80 percent incondensed milk.
Furthermore, the company has been successful indeveloping its export markets, shipping over 200 million USD worth ofproducts to 31 countries and territories. Average export growth in thelast 10 years has been 17 percent a year.
The key export markets are in the Middle East and Asia, and the company seeks to expand into Europe, Africa, and South America.
Exports have accounted for 8-24 percent of revenues in the last decade.
To develop is dairy sources, Vinamilk has signed agreements with farmers to buy 650 tonnes of fresh milk every day.
This has been growing by 8.4 percent in volume terms and 21.8 percent in value terms every year.
The company now has seven farms and has built two new farms with 24,000 heads of cattle.
Atthe meeting, Vinamilk urged the National Assembly to reconsider whatstakes the State must hold in joint stock companies so that all partiesbenefit. The Government still holds a majority stake in most joint stockcompanies, especially in the dairy and food sector, which is notnecessary, according to Vinamilk.-VNA
