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Dong Nai Port JSC: More attention on risk management, ensuring service quality

(VLR) Risk management is a core part in an enterprise’s business activities. For stableand safe activities and for efficinent uses of assests and resources, Dong Nai Port JSC (PDN) has set up and maintained the System of Risk Control in the whole company. PDN is able to prevent and limit risks thanks to well maintaining the system. Even in some cases, it is possible to change risks into opportunities, ensuring PDN to provide customers its best- quality services.

Nguyen Ngoc Tuan, General Director of PDN

Nguyen Ngoc Tuan, General Director of PDN

Nguyen Ngoc Tuan, General Director of PDN, talked with the Vietnam Logistics Review Magazine about efficiency of the System of Risk Administration and Control and other strategic solutions PDN has been applied to have good results, aiming at improving service quality.

There are many risk-potential changes in economic situation both in the country and in the world, the latest is the outbreak of COVID-19, which has interrupted productions and business of many enterprises’. But, PDN’s business has maintained it growth. How did PDN do it?

As a pioneer enterprise of Dong Nai province, the work of port exploitation and logistics services has been PDN’s orientation for many years. From the end of 2019 now, the outbreak of COVID-19 has spred out and has had bad impacts to financial market and global economy, interrupting supply chains of various products in the world and in Vietnam or causing production shut-down. Having a long border with China and having a large economic openness, Vietnam has had no small impacts from the pandemic. Vietnam’s enterprises are currently trying their best efforts to maintain themselves and overcome the pandemic. For example, in PDN the Board of Leaders has had timely solutions: increasing local service activities to compensate international transport service suffered from the pandemic.

In the first four months of 2020, the total turn-over reached VND 230.1bn year-over-year and annual plans reached 101.4% and 30.7% in succession. Profit before tax reached VND 51.4bn- 98,7% year-over year- and 32.1% compared to 2020 plan. Beside moderlizing facilities and improving human resources, we have been paying attention to forecasting and evaluating risks, so that we can deal with them to ensure smooth activities of the port, minimizing losses as we have done in the pandemic.

Can you make it clear about the system of risk administration and control the company are applying? In macroeconomic level, do you have any ideas about opportunities and risks that may happen to Vietnam’s economy in the year of 2020?

In PDN, we built a system of risk administration and control of 3 levels with independent protection and cross check. The first step is carried out right at production and business departments, responsible for identifying, controlling and minimizing risks deriving daily in the process of operation. There will be timely reports when risks are found; The second step is carried out at functional departments where are responsible for setting up regulations and central administration policies in accordance to various fields, ensuring good compliance of legal regulations and company’s regulations as well. There will be measurements and error-fixing activities after being checked; The third step is carried out by the Board of Internal control, which are responsible for setting plans and quarterly checks. The system of risk management is provided with enough resources and tools for efficient operation. All process is carried out comprehensively by all- from the highest level to each staff member.

In 2020, the global economy is forecast to have slow blooming back due to serious impacts from the pandemic. Besides, there are risk potentials from trade war, changing rates, interests and terrorist attacks. In the country, besides difficulties as unstable economic growth, labor capacity, weak competition abilities, Vietnam’s economy has had its bright spots as production shift from China to Vietnam. Vietnam started to implement free trade agreements as CPTPP, EVFTA... in deep and wide level, so there will be opportunities to attract FDI flows, e-trade and retail logistics eruption and M&A activities... and based on these forecast, we have particular plans to make use of them for development opportunities and risk minimizing.

According to experts, international economic integration through new-generation free trade agreements as EVFTA will bring opportunities of developments to Vietnam’s logistics sector. As a leading brand in the logistics sector, what has PDN prepaired to make use of these opportunities?

In term of facilities, in 2020, PDN has invested in bidding procedures of building a terminal of 30,000DWT (Terminal B5), and expanding 8.0ha more in the area of Go Dau Terminal, 5.0ha leased at neiboring area of Ba Ria - Vung Tau to receive cargo for years to come. At the same time, PDN built a terminal of 5,000DWT and installed 2 Liebherr cranes with capacity of 30 tons in Long Binh Tan serving cargo from industrial zones of Dong Nai, Binh Duong and HCMC. Until now, Long Binh Tan Terminal has a size of 178,000m2 with 03 berths of the length of 294m, enabling to receive vessels with capacity of up to 5,000DWT; Go Dau Terinal has a size of 549,400m2 with 06 berths of the total length of 782m, enabling to receive vessels up up to 30,000DWT.

In term of human resources, the Board of Leaders and PDN staff are creative and whole- hearted with the company’s activities. It is our strength, our fortune so that PDN is able to overcome difficulties to go far to the great seas, to go together with customers and partners to sustainable development in the future.

Thank you!

Nguyen Bao

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