Restructuring public service companies proves effective

Because of reliance on parent companies, productivity of subsidiaries is often low. In an effort to improve operation efficiency of some public service companies, the Ministry of Transport recently restructured the subsidiaries of 4 public service corporations. Thanks to equitisation, subsidiaries now have better production, completing tasks assigned by parent companies.

A year after becoming a private company, Maritime Mechanical Division-North of Vietnam Maritime Safety-North Corporation can bid for outside contracts. Workers here now work continuously, instead of their previous unstable schedules.

"Before, we just followed the parent company’s plans. Now, with outside projects, we have more jobs, which improves our income", said Le Duy Luyen, Worker, Maritime Mechanical Division-North.

The company can now operate individually and participate in many large construction projects, such as Kenh Tac ferry in Tra Vinh southern province, leading-mark in Fomusa Port, and Nghi Son Port in Thanh Hoa central province. This firm also co-operates with partners from Korea and China. Total revenue of the company increased from about USD$1 million to more than USD$3.5 million in 2015.

"Our workload has increased several times compared with before equitisation. Our staff and workers now have more to do. We even work on Saturday", said Tran Quoc Son, Chairman of the Board, Maritime Mechanical Division-North.

"Equitisation benefits both parent companies and subsidiaries. It not only helps subsidiaries conduct more outside business, it also helps them work more efficiently and save money for their parent companies", said Bui The Hung, Chairman of the Board, Vietnam Maritime Safety-North Company.

Maritime Mechanical Division-North has won many new contracts in 2016. This bustling atmosphere is expected to continue throughout the year.