Privatization of Vietnam's hottest plastic enterpr

2022-10-13
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Privatization of Vietnamese plastic enterprises to meet global challenges

today's Vietnam is trying to get rid of the invariance and limitations of the planned economy and meet the risks and potential of the global market

once a pure state-owned enterprise, Lang Dong plastic joint stock Co. is one of the largest extrusion production enterprises in Vietnam, accounting for a large share of the domestic vinyl sheet Market in Vietnam, and began the privatization process last year. After reducing more than one-third of its employees, Lang Dong plans to invest in building another plastic packaging plant and upgrading its equipment

however, with 500 employees and an annual consumption of 15000 tons of PVC, Lang Dong company has realized that although its scale is one of the best in Vietnam, it is fundamentally insignificant in the world market, so it must effectively enhance its competitiveness

ho Duc Lam, chairman and general manager of the company, said in an interview in his office in Ho Chi Minh City, Vietnam on November 20, "we are a large company in Vietnam, but compared with enterprises in other countries, we are only small and medium-sized enterprises. As a new enterprise, our competitiveness is still very limited."

lang Dong is investing at least US $12million (94 million yuan) in various new projects, including US $5million (39 million yuan) in the construction of a new packaging plant in Ho Chi Minh City, which will meet the food safety standards set by the international hazard analysis and critical control point (H company's advantage in the whole industrial chain highlights ACCP's view of the current global pattern of plastic machines)

the company will also relocate a factory in Hanoi, build new offices on the golden land in the center of Hanoi, and update the equipment at the same time. Company officials said that some of the project funds will be allocated from the company's income, and the rest will come from bank loans and "preferential" loans provided by the government. In addition, Lang Dong company will carry out more environmentally friendly production

Le van Ba, assistant to the general manager, put on a "fireproof jacket" O and said that, for example, the company would purchase non-toxic plasticizers and remove heavy metals from PVC. Ho said that the company hopes to increase the proportion of export sales from 10% to 30%, so it will also pay close attention to the in-depth discussion of PVC around the world

According to Ho Duc Lam, Lang Dong also produces PE film, which is also a large raincoat and bag supplier and a well-known brand in the Vietnamese market. He said that the company will focus on the following areas: synthetic leather using vinyl and polyurethane, plastic film for flexible packaging and flame retardant chemicals

ho Duc Lam said that he believed that the transition to privatization was really the right way

by 2007, the government shareholding ratio will be reduced from 60% this year to 40%, which will be simple to operate and greatly improve the flexibility of enterprises. He said that the company has cut the number of employees from 800 when the government held the controlling stake to 500 now, and the sales have also increased (he said that the government has provided a one-time buyout preferential retirement scheme to the employees who left.)

ho Duc Lam said, "the operating costs of state-owned enterprises are difficult to control, but when we turn into joint-stock companies, everything is much easier to control."

reprinted from: China's food industry

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