Tasco will focus on toll collection to build up momentum in the near future. Photo: Internet.

Leaving inefficient fields

On 14 December, the Vietnam Airlines Corporation held a meeting of shareholders to approve restructuring due to the impact of the Covid-19 pandemic, over the next few years. According to the report from the Board of Directors, the effects due to the public health crisis and the fluctuations of the business environment have required the corporation to implement a comprehensive restructuring plan in all areas, and have plans for all systems to overcome difficulties. They will also aim to gradually develop sustainability, while ensuring adaptation to the changing business environment.

Proposed solutions include, fleet restructuring, restructuring assets through liquidation of old aircraft, sale and leaseback of aircraft and ensuring aircraft resources meet market demand in the post-pandemic period. Vietnam Airlines has planned to restructure its capital by issuing more shares, increase charter capital, and mobilize external capital at reasonable costs via bond issuance. They will also rely on commercial loans from domestic credit institutions and restructuring existing loans.

In addition, the Corporation restructures investment portfolios and member enterprises, including, capital transfer, equitization, and sale of some investment portfolios. This will ensure the corporation can have a more effective legal structure and focus on the main operation of air transport and unified services for the aviation sector. This adds income and compensates accumulated losses for the parent company.

In early December, the IDICO Corporation announced the divestment of investigation capital in joint ventures, associated companies and long-term financial investments. According to General Director of IDICO, Dang Chinh Trung, currently the IDICO Corporation is investing capital for main business activities and balancing capital for investment projects. Therefore, the Corporation offers to sell all their invested shares in four units, including, the IDICO Machinery Erection Construction Investment Joint Stock Company, the Dong Thuan Investment Joint Stock Company, the Industrial University of Vinh and the Vietnam Urban Investment Construction Joint Stock Company.

IDICO transferred all shares in the Phu My Ultra Clear Float Glass Co., LTD to the Viglacera Corporation, worth VND350 billion in September, and it also transferred all shares at the Dak Mi Hydropower Joint Stock Company to the Bitexco Group Company Limited, worth VND520 billion in June 2021. These two transactions have helped the company's revenue soar in the first nine months of 2021, nearly four times higher than the same period last year. Profit after tax increased 76%, to VND540 billion.

The Board of Directors of the Tasco Joint Stock Company have approved the policy of transferring all shares in seven subsidiaries and associated companies, with a minimum divestment value of VND600 billion. Tasco will divest three subsidiaries, including, the Tasco Thanh Cong Joint Stock Company, the Tasco Nam Dinh Limited Company, the An Nhien Foods Limited Company and four joint ventures and associated companies. Namely, the Thai An Real Estate Joint Stock Company, the Tasco Thang Long Joint Stock Company, the D-Tech Joint Stock Company and the Thang Long Corporation.

According to the consolidated financial statements for the third quarter of 2021, Tasco owns 12 subsidiaries and five joint ventures and associated companies. Thus, if the divestment plan is successful, Tasco will have only nine subsidiaries and one associate company.

Tasco is known as "the BOT tycoon", with many projects in the Northern region. The company has invested in smart, non-stop toll collection projects from North to South and invested in the medical field. At the general meeting of shareholders in the end of October, the management board of Tasco said, “(we) will focus on key areas and mobilize resources to create resilience in the near future, such as non-stop toll collection services and health and transport infrastructure.

Grasping “golden opportunities”

Besides difficulties caused by the Covid-19 pandemic, the public health crisis has opened up opportunities in business. For example, Mobile World system - under the Mobile World Investment Joint Stock Company, has continuously opened new chains and tested new products with the expectation of making a breakthrough. In October 2021, Mobile World opened the Topzone chain, focusing on Apple products such as Iphone, Ipad, Apple Watch, Macbook and other products.

In the end of November, this company continued to launch the BlueJi chain, featuring eyewear and jewelry products. Most recently, the BlueSport chain continues to open new stores, with fashion products of famous brands such as Nike, Puma, Adidas and Reebok.

According to the leader of Mobile World, the pandemic has helped the company grasp new opportunities in new areas. Specifically, in the fashion sector, many small retailers have had to close while the market has increasing demand. Accordingly, Mobile World quickly inveseds in this field to capture market share.

Meanwhile, the Chuk Chuk retail chain was launched by Kido Group in June 2021, but had to be delayed due to the complicated development of the disease. Therefore, at the end of October, this group quickly launched the retail chain and opened ten stores. The group aims to open 40 more stores in December this year, and 400 other stores in 2022. According to Kido, despite many difficulties, the pandemic has helped it get many convenient premises at a lower cost.

According to General Director of Kido, Tran Le Nguyen, the group’s two main items of ice cream and cooking oil both achieve growth rates of 25-30% per year, but they want to promote the retail segment through the Chuk Chuk chain to access a larger market. Recently, Kido signed a cooperation agreement with the Son Kim Group to bring Chuk Chuk products and GS25's store system to the market. In addition, the two sides also aim for cooperation in long-term investment in real estate.