The conference was attended by Mr. Phan Van Ban - Chairman of Vietnam Trade Union of Industry and Trade and representatives of a number of Departments, Offices, and Party Committee Offices of the Ministry of Industry and Trade.
In the first 6 months of 2024, Vietnam Engine and Agricultural Machinery Corporation (VEAM) has made efforts to implement solutions for production and business activities in the context of many difficulties in the world and domestic economy. Especially in some of VEAM's export markets, political instability, currency devaluation, etc. have affected the export turnover of some of the corporation's products.
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| Mr. Ngo Khai Hoan spoke at the conference. |
Speaking at the opening of the conference, Mr. Ngo Khai Hoan - Chairman of the Board of Directors of VEAM said: In the context of many difficulties, some indicators of the first 6 months of VEAM have decreased slightly compared to the same period in 2023. Therefore, the conference will focus on evaluating the results achieved as well as the remaining problems, through which the units in the corporation will discuss together to find solutions for the last 6 months of 2024.
Reporting at the conference to review production and business activities in the first 6 months of the year and the direction of implementing the plan for the last 6 months of 2024, Mr. Nguyen Hoang Giang - VEAM said: In the first 6 months of 2024, VEAM's production and business activities still faced many difficulties. The results of implementing the main production and business targets of the parent company, subsidiaries, and affiliated companies all decreased compared to the same period in 2023.
Accordingly, the industrial production value is estimated at VND 1,569 billion, down 10%, revenue is estimated at VND 2,067 billion, down 7%, pre-tax profit is estimated at VND 5,569.3 billion, down 15% over the same period in 2023 and reaching 94% of the annual plan. In particular, the parent company's after-tax profit is estimated at VND 5,361.7 billion, reaching 98% of the annual plan.
The reason for the decline in some of the above indicators is said to be due to the parent company's plan to increase industrial production value and revenue by about 75% compared to the results achieved in 2023 with the expectation of boosting production and consumption of new products at VEAM Motor. However, in the first 6 months of the year, VEAM Motor's production and business results were still not positive.
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| Conference overview |
In addition, the consumption of Changan inventory vehicles and ISEKI tractors is slow due to the lack of a comprehensive plan for consumption of inventory; retail sales progress is slow due to uncompetitive selling prices, and cooperation with sales agents still has many problems regarding dealer contracts.
In addition, another important reason is that due to personnel changes since the beginning of 2024, trade promotion activities and participation in fairs have not been implemented as planned, which also affects the consumption of goods.
According to VEAM representative, in the coming time, the main task of the Corporation will focus on finding solutions to overcome difficulties, resolve inventory and debts; finding partners to provide solutions suitable for the branches and commercial business of VEAM office.
Bright spots in the first 6 months of the year
Despite many difficulties in the first quarter of 2024, with efforts in the second quarter of 2024 and in the first 6 months of the year, VEAM Foundry (VF) achieved growth results in most key indicators and exceeded 50% of the plan.
Notably, VF has actively developed sample products for customers TSURUMI, HYOSUNG, OKANETSU... to soon put into mass production in the near future.
In addition, the group of 4 subsidiaries including: DISOCO, SVEAM, FUTU1 and FOMECO continue to be companies with large revenue, contributing up to 82% of VEAM's industrial production revenue.
Along with that, TAMAC and the Institute of Technology continued to operate profitably after many consecutive years of inefficiency while Tran Hung Dao Mechanical Company Limited was the only unit still making a loss, although it had reduced its losses.
Regarding trade activities, VEAM's total export turnover in the first 6 months of the year decreased by 12% compared to the same period in 2023 and reached 50% of the annual plan, mainly in the agricultural machinery export segment. Major supporting export markets such as the US, China, and Japan, although slightly decreased, still maintained stability.
Some agricultural machinery export markets such as Myanmar, Malaysia, Indonesia, Philippines... face many difficulties due to currency devaluation, reduced purchasing power as well as political instability.
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| Mr. Le Viet Hung shares SVEAM's experience in product innovation and overcoming difficulties |
Sharing at the conference, Mr. Le Viet Hung - Director of SVEAM Company said: The current domestic agricultural machinery market accounts for 60% of Chinese products, the competition is increasingly fierce, especially when some of the company's traditional export markets are facing difficulties due to political instability, currency devaluation... Therefore, the company has increased domestic market promotion, product innovation, quality control, internal cooperation promotion, thereby helping to reduce production costs by 5-8%...
According to Mr. Le Viet Hung, diesel engine products are currently decreasing, this is a general trend, so besides good sales service and good quality products, the company focuses on product innovation.
“ SVEAM is developing electric motors, we have worked with many partners, hoping to officially launch the product by the end of 2024. In addition, we have also successfully researched and developed the new diesel engine product S365. Currently, SVEAM has produced 100 products for the market and received positive signals, we plan to produce 100 more products from now until the end of 2024 ” - Mr. Le Viet Hung said.
At the conference, representatives of some member companies of VEAM shared their experiences and solutions that they have implemented in the past to overcome difficulties. Thereby, the units hope to continue to receive support from the parent company as well as other units in VEAM in implementing internal production cooperation, helping to create stable jobs and reduce production costs, thereby contributing to improving product competitiveness.
In the last 6 months of 2024, VEAM aims to complete the plan for important targets on production and sales revenue, along with the consumption of VEAM Motor, Changan and ISEKI tractor inventory, which requires a comprehensive plan and measures to resolve as soon as possible.
Source: https://congthuong.vn/vuot-qua-kho-khan-veam-dat-98-loi-nhuan-ca-nam-2024-335920.html
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