On the occasion of the 20th anniversary of the establishment of VEC Corporation, Mr. Pham Hong Quang - Deputy Secretary of the Party Committee and General Director of the enterprise - shared an article about the development journey and achievements of VEC:
Revenue is increasing, and the operating infrastructure is stable.
These days, VEC is preparing to celebrate its 20th anniversary. After two decades, VEC has contributed to achieving the goal of developing the national expressway network through the investment in 5 expressways with a total length of 540 km, with a total investment of approximately 108,865 billion VND mobilized from domestic and foreign capital sources.
In its role of managing and operating state-assigned expressways, VEC has put into stable operation 490 km of 4 out of 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 currently in operation, serving over 400 million vehicles.
Total toll revenue (excluding VAT) reached over 30,000 billion VND, ensuring repayment of debts due according to the approved financial plan.
The 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 routes.
Expect a solid foundation.
Despite its current growth trajectory, behind these achievements, VEC once found itself "lost" in the shadows. Without the perseverance and efforts of all its leaders, staff, and workers, the business results it has achieved today would certainly not be so remarkable.
Accordingly, to ensure the resources for participating in projects, the Corporation actively collaborates with a number of domestic and foreign financial institutions to research and propose forms of capital mobilization.
However, obstacles in implementing Decision No. 2072/QD-TTg of the Prime Minister on restructuring investment capital for 5 expressway projects of VEC have prevented the process of adjusting and increasing VEC's charter capital from being carried out. The goal of investing in new expressway projects has once again failed.
Frankly speaking, despite being established as the first specialized model in investment and construction of transportation infrastructure, VEC still lacks a solid foundation to accelerate its growth and effectively utilize state budget funds as expected.
The legal framework for VEC's investment, operational management, maintenance, exploitation, and business operations for capital recovery is both inadequate and unstable. VEC has only been able to apply some pilot mechanisms while being governed by laws and decrees, some of which are no longer in effect.
The goal is to "use infrastructure to generate more infrastructure".
From 2021 to the present, under the decisive direction of the State Capital Management Committee at enterprises, the Ministry of Transport, and with the support of the Ministry of Planning and Investment and other relevant agencies, the difficulties have been overcome.
This includes, importantly, the Politburo and the National Assembly approving the conversion of loan capital from relending to state budget allocation for four expressway projects of VEC. Based on the opinion of the National Assembly Standing Committee, the Government leadership assigned the Ministry of Finance to guide the implementation of increasing VEC's charter capital.
On February 9th, the Government Office issued a document approving the restructuring plan for VEC, maintaining the model of a state-owned enterprise with 100% state ownership of charter capital. These are extremely favorable prerequisites that will create conditions for VEC's stable and sustainable development.
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, several restructuring solutions have been quickly researched and proposed.
Firstly, fully and synchronously implement the tasks set out regarding the restructuring of investment capital for the 5 projects invested by VEC, especially contents such as: completing the procedures to approve the restructuring of investment capital for the 5 projects, increasing charter capital, etc.
Based on the approved restructuring plan, VEC will actively implement and complete the procedures to increase its charter capital to VND 44,543 billion by 2026, based on direct investment in projects.
Secondly, we need to overcome the limitations and obstacles in the policy mechanisms.
Thirdly, stabilize and restructure the organizational structure to ensure that VEC operates in a streamlined and efficient manner, demonstrating the leading and core role of a state-owned enterprise in investing in and developing the national expressway system.
In addition, it is necessary to build an organizational structure and operational model that is centralized, professional, with specific division of labor and hierarchical levels, and streamlined management...
| During the period of 2021-2023, VEC's business performance consistently met and exceeded planned targets for profit, revenue, and budget contributions. Total revenue reached over 20,500 billion VND; cumulative after-tax profit reached over 2,700 billion VND; and contributions to the state budget exceeded 2,000 billion VND. |
Pham Hong Quang - Deputy Secretary of the Party Committee, General Director of VEC
Source: https://vietnamnet.vn/vec-chuyen-minh-de-don-van-hoi-moi-2327729.html
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