A survey of 19 equitized enterprises indicates that in 2005, their profits climbed 111percent to VND 45.7 billion, State budget contributions increased 5.6 percent to VND 40.3 billion compared to before equitization, and dividends averaged from 15 to 17 percent annually.
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| Bien Hoa Packaging Joint Stock Company, one of enterprises is operating more effectively after equitization |
A survey of 19 equitized enterprises indicates that in 2005, their profits climbed 111percent to VND 45.7 billion, State budget contributions increased 5.6 percent to VND 40.3 billion compared to before equitization, and dividends averaged from 15 to 17 percent annually.
We can see that many enterprises in Dong Nai have operated more effectively after equitization, they have focused on expanding production in order to enhance competitive capacity. Bien Hoa Packaging Joint Stock Company (Sovi) is a typical example. The company with chartered capital of VND32.5 billion was equitized in September 2003. To compete with foreign - invested enterprises operating in Dong Nai and in neighbouring provinces, Sovi has planned to invest VND 85 billion in 45 -hectare factory in Bien Hoa Industrial Zone 1. Accordingly, the first phase of the project was completed in 2005 with investment capital of VND 55 billion and has put into operation a production line with an annual capacity of 25,000 tonnes. Presently, Sovi is preparing to invest the rest of VND 30 billion in importing the five-color automatic Flexo printer and some new equipment for the second phase of the project. Through a professional consultancy company, Sovi has built the programme “organizational restructure and human resource development” to reasonably re-arrange personnel and improve production process.
Thanks to that, Sovi has produced 27,114 tonnes of products in 2005, 12,500 tonnes higher than that of 2002. It reached turnover of VND 195.7 billion, an increase of over VND 75 billion and achieved the profit of VND7.3 billion, up VND2.7 billion.
The Dong Nai Paint Stock Company (Donasa) was equitized in 2000. In 2005, Donasa raised its charter capital to VND 11.4 billion from previous VND 7.2 billion. The company saw higher increase in output, revenues or sales and state budget contributions compared to before equitization. Furthermore, Donasa has had a dividend yield of 18 per cent for many consecutive years. In 2005, Donasa in cooperation with the Amercian PPG Corporation opened a heavy-duty industrial coatings plant in
During the past 4 years after equitization, Dong Nai Construction Joint Stock Company reported its revenue increased by 45.5 percent a year on average, profit by 5.6 times, state budget contributions 16 times. The company is paying an average dividend of 46.5 percent annually.
Besides, some newly-equitized companies have made significant changes in business strategy which expanded new business opportunities and enhanced profitability. A typical example is the launch of new products like high grade ceramic tile and colour tile roof produced from advanced technology by Dong Nai Roofing and Building Materials Company. At the same time, the company is expanding new business opportunities in infrastructure investment.
Our findings are that the productivity and earnings of enterprises in Dong Nai generally pick up sharply after equitization and their performances improve better or much better than before equitization.
X. Phu
