Expect VEAM to continue to lead in the mechanical field

At the conference summarizing VEAM's production and business activities, Deputy Minister Phan Thi Thang expected VEAM to return to its leading position in the mechanical field.

On the morning of December 26, Vietnam Engine and Agricultural Machinery Corporation (VEAM) held a conference to summarize production and business activities in 2024 and plan for 2025.

The conference was attended by Deputy Minister of Industry and Trade Phan Thi Thang, representatives of the leaders of the departments and offices of the Ministry of Industry and Trade; along with the Board of Directors of VEAM, functional departments and offices of the corporation, capital representatives at companies with capital contributions of VEAM...

Overcoming difficulties, VEAM achieves profit of over 6,200 billion VND in 2024

Speaking at the conference, Mr. Ngo Khai Hoan - Chairman of the Board of Directors of VEAM - said: In 2024, Vietnam's economy will continue to recover positively, with many bright spots. However, the domestic economy will continue to face many difficulties due to political instability and military conflicts in the world, causing the USD exchange rate and gold price to increase sharply; crude oil prices, transportation services... fluctuate strongly, making it difficult to predict the ability and time of recovery. Natural disasters, droughts, storms, floods, climate change have caused serious consequences, especially storm No. 3 (Yagi)... In that context, many companies with capital contributions from VEAM are also directly affected by the storm such as damaged factories and equipment, reduced orders from partners...

Mr. Ngo Khai Hoan - Chairman of the Board of Directors of VEAM - spoke at the conference

“ The production and business activities of units with capital contributions from VEAM have encountered many difficulties, leading to a slight decrease in production and business targets of the parent company and its subsidiaries and associated companies (excluding joint venture companies) compared to 2023. However, the profit target still exceeded the annual plan target mainly thanks to the effectiveness of the parent company's financial investment activities and cost reduction, ” Mr. Ngo Khai Hoan emphasized.

In 2024, the main production and consumption results of VEAM's parent company in 2024 were very low compared to the plan. Although financial revenue and after-tax profit estimated for 2024 decreased by 18% and 8% respectively compared to 2023, they still exceeded the plan approved by the 2024 Annual General Meeting of Shareholders. Specifically, the industrial production value is estimated at 269.7 billion VND, financial revenue is estimated at 6,511.9 billion VND, equal to 111% of the yearly plan, and after-tax profit is estimated at 6,244.7, equal to 114% of the yearly plan.

“In addition to the achievements, there are still some shortcomings, limitations, challenges and opportunities that require the VEAM leadership to be proactive, united, straightforward, open-minded, innovative and creative to achieve more positive and stronger changes in the era of national growth as the General Secretary said,” said Mr. Ngo Khai Hoan.

Sharing at the conference, Mr. Nguyen Van Hai - Director of Veam Automobile Factory (VM) - said: In 2024, VM ​​will really face many difficulties in both new production and consumption of inventory vehicles. In 2025, the consumption of inventory vehicles will certainly be even more difficult and will require more time. VM must urgently research and propose feasible solutions to consume the entire inventory of vehicles. Regarding the production of new products, VM will focus resources on developing new vehicle lines closely following the plan to launch vehicles to the market, ensuring progress and efficiency in terms of revenue - profit...

Like other businesses, in 2024, Machine Parts Joint Stock Company No. 1 (FUTU1) will also face increasingly fierce competition in the field of motorcycle spare parts, along with the Government's policy on transforming to a green and circular economy, which is causing the demand for electric vehicles to increase rapidly. Honda Vietnam, currently a major customer of FUTU1, has reduced the output of motorcycle components while its participation in the production of parts for electric vehicles is still limited, leading to existing difficulties, greatly affecting production and business, but FUTU1 still stands firm and is a bright spot among VEAM's subsidiaries.

VEAM rewards units with good production and business results in 2024

However, in 2024, FUTU1's main revenue targets are estimated at VND 914 billion, equal to 100.5% over the same period in 2023, reaching 100.4% of the annual plan. Pre-tax profit decreased by 10% over the same period last year and only reached 99% of the annual plan target. Export value increased by 17% over the same period and increased by 19% compared to the annual plan due to FUTU1 developing more joint products to EKD Company, Musashi's processing arm exported to Brazil.

Mr. Tran Duc Hung - Director of FUTU1 - said: Enterprises are currently under a lot of pressure from the market. For FUTU1, products must compete in price and quality. Therefore, it is necessary to improve and innovate technology, increase productivity, reduce costs, and have a streamlined and efficient apparatus. Along with that is the requirement to reduce the carbon footprint of products when exporting to the European market and some other markets, especially FUTU1 with about 80% of products serving the production of motorbikes. In the current context, the trend of switching from gasoline vehicles to electric vehicles has caused Futu1 to face many difficulties. Therefore, in the coming time, FUTU1 hopes to continue to receive more support and guidance from the Corporation and management agencies...

Expecting VEAM to return to its position as the "leading bird" in the mechanical field

On behalf of the leaders of the Ministry of Industry and Trade, Deputy Minister Phan Thi Thang highly appreciated the collective of employees of the corporation for overcoming difficulties to complete the production and business plan in 2024.

Overview of the conference

“In that context, in 2024, VEAM's production and business activities will still face many difficulties. The results of the main production and business targets of the parent company and its subsidiaries and associated companies, excluding joint ventures, will decrease slightly compared to 2023, but still exceed the 2024 plan,” Deputy Minister Phan Thi Thang emphasized.

According to the Deputy Minister, 2024 is a difficult year for the Vietnamese economy in the context of unpredictable global geopolitical fluctuations. In that context, with the leadership of the Party, the efforts of the Government with appropriate policies, the efforts of the business community and the people, Vietnam's economic growth in 2024 is estimated to reach 6.8 - 7%. This result shows that the Vietnamese economy has gained growth momentum before Covid-19.

To continue to successfully implement the goals and ensure the completion of production and business plan targets in 2025, Deputy Minister Phan Thi Thang suggested that VEAM needs to implement the following solutions:

Firstly , comprehensively promote all aspects of activities and work according to the orientation in the 5-year production and business plan for the period 2021 - 2025 that VEAM has built.

Deputy Minister Phan Thi Thang gave a speech at the conference.

Second, deploy synchronous solutions to remove and resolve existing problems and difficulties from previous years, ensuring effectiveness and compliance with legal regulations. Continue to coordinate with competent authorities to completely resolve remaining problems, shortcomings and errors of VEAM from previous periods...

Third, complete the VEAM restructuring project with the goal of divesting capital from units with VEAM's capital contribution but are operating ineffectively and whose business lines are not focused on VEAM's future development orientation, overcoming cross-ownership among units with VEAM's capital contribution, and focusing resources on companies with business lines suitable for VEAM.

Fourth, continue to carry out the equitization settlement of VEAM.

Fifth, prepare to build a 5-year plan for the period 2026 - 2030 associated with the VEAM restructuring project.

Sixth, improve competitiveness in the field of agricultural machinery manufacturing and supporting industries, proactively and actively conduct market research, trade promotion, participate in annual fairs and exhibitions, seek and promote cooperation with prestigious domestic and foreign partners based on the development orientation of member units, promote trade promotion activities of new products to expand domestic and international markets.

The Deputy Minister also noted that in 2025 and the following years, with the policy of investing in high-speed railway projects and developing industries towards increasing the proportion of localization in products, implementing Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation along with many policies and resolutions of the Central Committee... therefore, VEAM needs to research products to participate in projects, supply chains, implement the above policies and resolutions... Thereby, gradually bringing the Corporation back to the "leading bird" in mechanical industrial production.

Receiving the instructions of the Deputy Minister of Industry and Trade, Mr. Ngo Khai Hoan affirmed that the VEAM Board of Directors will seriously receive the instructions of the leaders of the Ministry of Industry and Trade, and the opinions from the member units immediately after the conference, focusing on directing the organization to resolutely and effectively implement the tasks and solutions set out with the highest effort right in the first days and months of the new year to successfully and comprehensively implement the goals and tasks assigned by the General Meeting of Shareholders and owners of the Ministry of Industry and Trade.

Source: https://congthuong.vn/thu-truong-bo-cong-thuong-phan-thi-thang-ky-vong-veam-se-tiep-tuc-dan-dau-trong-linh-vuc-co-khi-366304.html