In the afternoon of August 8, at a working session with the Ministry of Industry and Trade’s task force, led by Minister Nguyen Hong Dien, Mr. Tran Phuoc Hien, Vice Chairman of the Quang Ngai People’s Committee, reported on the restructuring and production activities of the Dung Quat Shipyard.
Mr. Tran Phuoc Hien, Vice Chairman of the Quang Ngai People’s Committee, provides information on the restructuring and business operations of the Dung Quat Shipyard.
Accordingly, regarding the handling of Dung Quat Shipbuilding Industry Limited Liability One-Member Company (DQS), the Commission for the Management of State Capital at Enterprises directed in Document No. 690/UBQLV-NL dated April 19, 2023, on the implementation of Deputy Prime Minister Le Minh Khai’s instructions pertaining to DQS. In response, the Vietnam National Oil and Gas Group submitted a report to the Commission, outlining a plan to continue the restructuring of DQS.
The People’s Committee of Quang Ngai Province also provided a written consensus to carry out the restructuring plan for DQS. This decision aims to improve financial health, enhance competitiveness, sustain job creation for workers, ensure security and production capacity, contribute to the revival of Vietnam’s shipbuilding industry, align with the development plan of the Dung Quat Economic Zone, and fulfill the sustainable development strategy for Vietnam’s marine economy by 2030, with a vision towards 2045.
On June 20, 2024, at a meeting regarding the orientation and handling of DQS, Deputy Prime Minister Le Minh Khai instructed the Commission for the Management of State Capital at Enterprises and PVN to promptly finalize and submit the proposal to the authorities, ensuring feasible and effective solutions that meet the set goals and deadlines.
The Dung Quat Shipyard’s business operations have witnessed a positive turnaround (Photo: CTV)
Concerning the business operations of Dung Quat Shipbuilding Industry Limited Liability One-Member Company, DQS’s performance in the last five years (2019-2023) showed growth compared to the period from 2016 to 2018. Revenue consistently increased year-on-year during the 2019-2023 period.
Revenue in 2022 stood at VND 757.08 billion, representing a 190% surge compared to 2021 (VND 396.03 billion) and a 180% increase over 2018 (VND 421.22 billion).
Revenue in 2023 reached VND 790.77 billion, a 104% increase compared to the previous year. The total profit for the five-year period from 2019 to 2023 was VND 65 billion, with a positive EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) of VND 353 billion. These figures indicate that DQS has turned a profit above its variable costs and partially covered its expenses.
