Period of 1998 - 2000
Upon the time of establishment, donglongjsc has faced difficulties due to the impacts from the financial crisis in 1997. By developing fleet, seaports and ICD system, improving competitiveness, increasing volumes of cargoes throughput the port, donglongjsc had overcome challenges and achieved impressive results encouraging.
At the end of 2000
1. The transported cargoes rose 23%, reached 11.4 million tons, increasing 3 times in compared with 1998’s. The total volume of cargo throughput rose 11 %, reached 20.6 million tons, increasing two times in compared with 1995’s.
2. The Fleet capacity reached 13.4T/DWT, compared with 10.2 T/DWT in 1995. Handling capacity reached 2.800T/m wharf/year in compared with 1.700T/m wharf/ in 1998.
3. The revenue reached 4.400 billion (about USD 367 million), at an average growth rate of 17 % per year and increased 2.5 times in compared with 1995’s. The average profit increased 9 %.
4. The Total State Capital is 2,225 billion dong, increased 50 % in compared with 1995’s.
Fleet investment: Since establishment, donglongjsc fleet has only 49 ships with a total tonnage of 397,000 DWT in 1995. At the end of 2000, the fleet have 79 vessels with a total tonnage of 844 000 DWT.
Along with the innovation of management and operation, Vinalines has achieved critical success in the five year period 1998-2000, and build brand name and reputation in the international market.
Period of 2000 - 2005: Restructuring and Innovation
In this period, donglongjsc and affiliates have maintained growth momentum and step by step restructuring organizations and activities:
1. Fleet investment:
Total investment for Vinalines fleet reached 7,200 billion VND, including of 2,500 billion VND for new building. The others is for purchasing secondhand ship.
With receiving of 7 newbuilding vessels, 71 secondhand vessels, at the end of 2005, Vinalines fleet had total 104 vessels with a total tonnage of 1.2 million DWWT with the average age of 17.4 year old.
2. Port development:
Total capital investment for infrastructure and equipment, including of 2000m length of berth receiving ships of 10,000 - 40,000 DWT, is 3,000 billion VND.
At the end of 2005, total length of berth was 9.000 m.
3. Building Oceanpark Building was accomplished and put into operation as head office of donglongjsc
4. Restructuring and business innovation:
In this phase, donglongjsc focusedon rearrange member companies, including of IPO 12 companies.
At the end of 2005, Vinalines has 46 member companies, including of 16 state-owned, 22 joint-stock and 8 joint venture companies.
Period of 2005 - 2010: Growth and expansion
In this stage, donglongjsc have been running following the Model of the Parent – subsidiaries company
1. Investment fleet: donglongjsc fleet has been developed with the goal of rapid modernization and rejuvenation. By the end of 2010, the total tonnage of the fleet reached 3.4 million tones DWT, including of container ships, bulk carriers and oil tankers.
2. The port investment: To develop a comprehensive system of seaports, especially the deep-water port, meet growing demand and export goods, donglongjsc has focused on investment seaport at key economy areas across the country.
3. Logistics: donglongjsc has also researched and invested by joint ventures with local and foreign partners to develop logistics activities to meet demand for imports and exports cargoes by sea.
Period of 2010 - 2015: Restructuring, focuses on shipping, port and logistics activities
During this development phase, the donglongjsc focuses on three main sectors: shipping, port operation and maritime logistics.
To implement Restructuring Plan period 2012 - 2015 was approved by the Prime Minister in Decision No. 276/QD-TTg, donglongjsc will restructure as follows:
Restructuring fleet in accordance with the needs of the market, selling not effective operation ships to reduce losses; keen on the domestic market. Reviewing the ship building program in accordance with the financial ability of donglongjsc, including of eliminating of building 7 vessels contract, rescheduling other 11 vessels building contract with donglongjsc .
Focus on exploiting existing ports, make priorities to efficiently exploit the northern port system in Haiphong, Quang Ninh and the southern port system in Cai Mep - Thi Vai and Ho Chi Minh City area.
Synchronous development services support shipping, especially logistics services, full service package, distribution centers, ICDs and the other types of advanced services.
With nearly 20 years of development, donglongjsc has built a reputation with domestic and foreign partners, creating a solid foundation for the next step forward way.donglongjsc , with efforts and strive of collective leadership and staff officers, continues growth and development.
- Port operations; ship repair; shipping agency, shipbrokering and other maritime services
- Import - export of maritime materials, equipment and means of transport; manning supply for foreign and domestic organizations
- Road and inland waterway transport
- Production, purchase and lease of equipment and means of transport, handling equipment; demolition of old means of transport and handling equipment
- Construction, installation of facilities, equipment and finalization of specialized constructions
- Restaurant and hotel operations
- Entertainment services
- Freight forwarding, wholesale and retail of goods; duty free shop operations; shipping supply services
- Import of raw materials and fuels for maritime sector
- Process of export goods
- Transport ancillary services
- Bonded warehouse operation, specialized information supply
- Tourism services
- House leasing for business purposes (kiosk, trading center)
- Multi-modal transport operations
- Freight forwarding, wholesale and retail of fuels
- Transport of passengers by road
- Dredging by contracts
- Towage services and other inland waterway supporting services
- Shipping agency, international and domestic handling of over-length and over-weight cargo, ordinary cargo, machines and equipment, and container by means of water and road transport
- Forwarding and transport of import and export cargo from border gates to warehouses
- Custom brokerage for import and export cargo on behalf of cargo owners
- Crew change transportation
- Marine supply of bunkering, provisions and stores
- Clearance, infrastructure
- Warehousing and logistics services
- Labour export, oriented education and job training for workers to work oversea; Sale and purchase of goods in lawful foreign currencies for workers to work oversea
- Import of petroleum; Transport of fuel; Fuel supplying and retailing agency operations
- Import and export of construction materials;
- International and domestic tourism services; Travel agency services; Sale and purchase of alcohol and tobacco
- Real estate and transportation infrastructure operations
The 21st century is the century of the ocean. Vietnam is striving to become a powerful and rich nation from the sea. Being the leading corporation in the maritime industry, DONGLONGJSC plays a role core business and important contribution in the industrialization and modernization, building a rich and strong country.
Operating objectives of DONGLONGJSC:
• To implement national economic sea strategies; to perform our obligation of developing maritime industry in accordance with the Nationwide’s oriented economic development; to raise DONGLONGJSC to be an efficient, capable of participating and integrating in regional as well as global economy.
• To generate profits in business; to secure and expand the State investment capital on DONGLONGJSC as well as our subsidiaries and joint ventures; to carry out all tasks assigned by the State, including the target ratio of return on owner’s equity.
• To maximize production efficiency and business profitability of the group which include both parent and subsidiaries.
• To diversify lines production and business, including specializing in marine shipping, port operating and providing marine services.
Operating functions of DONGLONGJSC:
• To directly operate business and invest in subsidiaries, affiliated companies; to lead, manage and govern its subsidiaries, affiliated companies in proportion occupied capital as prescribed by law and the charter of the organization and operation of DONGLONGJSC.
OPERATIONAL MODEL & ORGANIZATIONAL STRUCTURE
Donglongjsc is operated under Holding company model according to the Restructuring Plan approved by the Prime Minister at Decision No.216/2006/QĐ-TTg dated June 29, 2006
Holding company –donglongjsc is a joint stock company, organized and operated under Business laws. At the moment, Holding company –donglongjsc has 15 subsidiaries and one administrative organ.
The organizational Structure of donglongjsc consists of: Councils members, Internal Supervision Board, President & Chief Executive Officer, Vice Presidents, Chief Accountant, and Functional Departments.
Now, Holding company – donglongjsc manages 12 affiliated companies (own over 50% legal capital), 21 joint ventures (own from 20-50% legal capital) and 19 long term investment companies (own less than 20% legal capital)
DONGLONGJSC CURRENT OR GANIZATIONAL CHART
ORGANIZATIONAL CHART OF HOLDING COMPANAY – DONGLONGJSC
• Currently, donglongjsc and/or its affiliates has jointly invested, operated and managed with foreign partners in different joint-ventures in which the investment capital of donglongjsc and affiliates accounts for at least 50%. Those joint-venture companies operate in various fields of transport sector such as multimodal transport, forwarding, shipping, logistics and services and port development and operation.
• Joint-venture companies have established and maintained their closed ties with others under donglongjsc that together with Vinalines’ fleet has created a self-contained and comprehensive network of transport and services. Thanks to the existing relations of foreign partners in international market and the renewal of equipment, technology, management and operation, all joint-venture companies have been efficiently operated and developed their reputation to domestic and foreign clients, remarkably contributed to the expansion of Vinalines’ regional and global market.
• Presently, most of the joint-venture companies under donglongjsc have gained remarkable profit for joined parties in the companies and assured the active rights of Vietnamese party in making decisions on investment, human resources and market. After years in operation, Vietnamese employees in the joint-venture companies have been rapidly mature, perceived the knowledge, technology and neo-management skill, meeting the rising demands of market. Vietnamese cadres in those companies have been completely capable to replace foreign experts in being responsible for key operation and management positions.
• In the near future, donglongjsc plans to concentrate on enhancing investment quality and effects in the joint venture companies as well as attracting more FDI in the principle of respect and implementation of committed agreements, giving priority to capable partners on finance, technology and market with the aim of expanding donglongjsc’ market to other countries and territories. Besides, donglongjsc shall shall further expand its market through the establishment of new joint-venture entities or open liaison offices for logistics and services in Hong Kong and Singapore.
II. Mobilization of credit loans and aids:
• Besides strengthening the joint-venture activities, donglongjsc also determines the significance of overseas development funds to one’s development. Projects on port development, rehabilitation and renovation have been commenced thanks to these funds.
• Aiming at refreshing and expanding the fleet, donglongjsc have been working with different foreign and domestic financial sources such as Citibank, Standard Charter, PNB Paribas, Vietinbank, Vietnam Development Bank and BIDV…) in order to locally build new vessels or purchase second hand ones, although there have been difficulties in financial market in the last couple of years.
III. International relations:
• Playing a key role in Vietnamese maritime field, donglongjsc has actively joined with the Ministry of Transports and Vietnam Maritime Administration in planning and working out policies on development and international economic integration in transport sector and maritime field.