On the occasion of the 20th anniversary of VEC Corporation, Mr. Pham Hong Quang - Deputy Secretary of the Party Committee, General Director of this enterprise wrote an article sharing about the development journey and achievements of VEC:
Increased revenue, stable mining infrastructure
These days, VEC is about to turn 20. After two decades, VEC has contributed to the goal of developing the national expressway network through investing in 5 expressways with a length of 540 km, with a total investment of about 108,865 billion VND mobilized from domestic and foreign capital sources.
With the role of managing, operating and exploiting the expressways assigned by the State, VEC has put into stable operation 490 km of 4/5 expressway projects (Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Da Nang - Quang Ngai, Ho Chi Minh City - Long Thanh - Dau Giay), accounting for more than 27% of the total length of expressways in operation, serving over 400 million vehicles.
Total toll revenue (excluding VAT) reached more than VND 30,000 billion, ensuring payment of due debts according to the approved financial plan.
Expressways put into operation by VEC help save travel time, reduce traffic congestion and accidents, and contribute to the socio-economic development of localities along the route.
Looking forward to a solid foundation
Despite its development, behind those achievements, VEC once had a time when it was “lost” in the dark. Without the perseverance and efforts of all leaders, staff, and workers, today’s business results would certainly not have been able to shine.
Accordingly, to ensure resources to participate in projects, the Corporation actively coordinates with a number of domestic and foreign financial institutions to research and propose forms of capital mobilization.
However, difficulties in implementing Decision No. 2072/QD-TTg of the Prime Minister on restructuring investment capital for 5 expressway projects of VEC caused the process of adjusting and increasing charter capital of VEC to be delayed. The investment target for the new expressway project was once again unsuccessful.
Frankly speaking, although it was born as the first unique model in investing in the construction of transport infrastructure, up to now, VEC still lacks a solid foundation to accelerate and effectively promote the state budget capital flow as expected.
The legal framework for VEC's investment, operation management, maintenance, exploitation, and capital recovery business is both lacking and unstable. VEC has only applied a number of pilot mechanisms while being governed by Laws and Decrees, some of which are no longer in effect.
The goal of "using infrastructure to create infrastructure"
From 2021 to present, under the drastic direction of the State Capital Management Committee at Enterprises, the Ministry of Transport, the support of the Ministry of Planning and Investment and relevant agencies, the difficulties have been resolved.
It is impossible not to mention the Politburo and the National Assembly approving the transfer of loan capital for re-lending to the state budget for 4 expressway projects of VEC. Based on the opinion of the National Assembly Standing Committee, the Government leader assigned the Ministry of Finance to guide the implementation of increasing charter capital for VEC.
On February 9, the Government Office issued a document approving the restructuring plan of VEC, maintaining the model of a state-owned enterprise in which the State holds 100% of the charter capital. These are extremely favorable premises creating conditions for VEC to develop stably and sustainably.
In order to implement the Party and State's guidelines and policies on continuing to restructure, innovate and improve the efficiency of State-owned enterprises, a number of restructuring solutions have been quickly researched and proposed.
Firstly, fully and synchronously carry out the assigned tasks of restructuring investment capital for 5 projects invested by VEC, especially contents such as: completing procedures to approve restructuring investment capital for 5 projects, increasing charter capital...
Based on the approved restructuring plan, VEC will actively implement and complete procedures to increase charter capital to VND 44,543 billion by 2026 based on direct investment capital in projects.
Second, overcome limitations and difficulties in policy mechanisms.
Third, stabilize and restructure the organizational structure to ensure that VEC's operations are streamlined and efficient, and demonstrate the leading and core role of state-owned enterprises in investing in the development of the national expressway system.
Along with that, it is necessary to build an organizational structure and an operational model that is centralized, professional, with specific hierarchical division of labor, and streamlined focal points...
| In the years 2021 - 2023, VEC's production and business results have met and exceeded the planned targets of profit, revenue, and budget payment. Total revenue reached more than 20,500 billion VND; Accumulated profit after tax reached more than 2,700 billion VND; State budget payment was more than 2,000 billion VND. |
Pham Hong Quang - Deputy Secretary of Party Committee, General Director of VEC
Source: https://vietnamnet.vn/vec-chuyen-minh-de-don-van-hoi-moi-2327729.html
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