The chairman o f broad o f directors and three deputy directors o f the company indicate that shareholders o f Vietfracht are the real bosses or ovvners o f the Corporation and thus their rights and obligations associate with business results o f Vietfracht. If the goals o f the tuture changes are to improve business performance, and increase dividends, most o f the minority shareholders will support the changes. For the dominant shareholders like the State shareholder, they wi 11 supporl changes that relate to sell old vessels because the vessels have small residual value and Vietfracht wi 11 gain interests from the sale o f the assets. Board o f Managers are individuals who represent shareholders and three fifths o f the members o f the Board o f Managers are Representatives o f State C a p i t a l , so they will also coincide with the view points o f dom inant shareholders. Board o f Directors’ main responsibility is to ensure business proíìtability, and improve business effíciency. Thereíbre, future changes are suitable to expectations o f the Board o f Directors receive lots o f supports from them. However, with three fifths o f the members o f the Board o f Directors vvorking in Sea Transport Block, the issue o f changes is a doubt related to abandoning business operations o f bulk and general cargo sea transport which have been already familiar and establishing business
operations related to Container ships called advanced forms o f transport.
Therefore, the Board o f Directors will still have many issues that need to be updated, supplemented in the operating process. Leaders and employees o f all business blocks o f Vietữacht expect Sea Transport Block will surely support future changes, especially leaders and employees in branches and subsidiary companies which have Vietfracht’s vessel calling the ports weekly. Domestic customers will surely support future changes but marketing issues related to developing rnore domestic customers will be a big challenge o f Vietíracht.
The chairman o f broad o f directors and three deputy directors o f the company indicate that dominant shareholders like the State shareholders will not necessarily support or have strong opposition to changes related to sellỉng dry cargo vessels with high residual value because the sale o f assets causes losses.
Leaders and employees o f Sea Transport Block are the victims o f the change and thus the place will inevitably receive the strongest opposition for the change. Thirdly, banks that loan Vietfracht for purchasing vessels will not support future changes because 03 vessels which has not been tìnished debt payment o f the banks. The vessels were invested at the period prior to economic crisis with high purchase prices. At present, Vietíracht undoubtedly repay the total o f principal bank loans and thus in the tuture banks wi 11 have to study very caretully and provide some attached conditions to Vietíracht.
Foreign customers o f Vietfracht will not support the future changes. The current Vietíracht fleet mainly operates on international routes and thus if the tleet o f the Corporation only operates inland, Vietfracht w ill deĩinitely lose the relationship vvith this íoreign customer base.
12. VVhat the capacity and w illingness o f V ietfracht’s leaders in conducting the changes?
Three deputy directors o f Vietữacht indicate that Vietữacht has the traditional solidarity o f overcoming difficulties and thus the Corporation considers employees and leaders’ supports for tuture change as the most important
element o f the changes. In other vvords, actors involved in íuture changes are the vvhole leaders and employees o f Vietíracht. VietíVacht has lots o f capability and competences to create competitive advantages to maintain and develop its grovvth o f husiness operation in the severely difficult economic period. Viettracht is a Corporation vvith lo n g history o f business in the Vietnamese maritime industry and thus its brand name is íầmous in both domestic and intemational market in marine and logistics íields. When customers in Vietnam have demands o f shipping goods, they often choose shipping services o f V ietíracht because the Corporation has high position in c u sto m e rs’ m inds. The Corporation has built a good brand im age in thoughts oí' customers through provide quick and exact shipping services and other services, tbcusing on providing services that meet all demands o f customers, pay much attention to customer values, and handling custom ers’ problems related to shipping issues o f their cargos quickly.
13. w hat are the m echanism s and m easu res that are used to s u p p o r t these changes?
Three deputy directors o f Vietíracht indicate tliat the mechanisms and measures that are used to support these changes are as follows:
Tim e: I he Vietnamese maritime in d u stry is engulíìng in the global economic crisis and it is predicted that the gloomy Vietnamese maritime industry will continue to prolong in at least the next tvvo years. Theretbre, changes needs to start right now through liquidation or sale o f dry cargo old vessels with poor technical condition to promptly cut losses o f Sea Transport Block o f the Corporation.
Scope: The changes are mainly conducted in Sea Transport Block o f the Corporation. Hovvever, the Sea Transport Block wi 11 need have the co- operation with all other rem aining business blocks o f the Corporation to enhance the effectiveness o f the changes and the business efíìciency im provem ent o f the vvhole Corporation.
Preservation: young dry cargo vessels with good technical condition need to be maintained in order to continue the work o f operation.
Diversity: Vietfracht conducts the changes one condition: the changes ensure that various em ployees and divisions vvithin the Corporation are h om ogeneous in terms o f positive attitudes tovvards the changes, and positive supports for the changes.
C a p a b ility : The team o f operators, ship managers, and crew members will be available to conduct the changes. The Corporation will conduct training o f new employees and nevv managers, and retraining o f existing employees and m anagers vvhile w aiting for investing in 2 Container ships.
C ap acity : Timely liquidation o f old dry cargo vessels will transfer from the tìxed assets to liquid assets (cash). The cash amount o f selling the old dry cargo vessels is not used to compensate for business losses but is used to invest in 2 Container vessels and upgrade present Container warehouse systems.
R eadiness fo r ch an g e: Business tleets are not effective and less involved in the business logistics chain that the Corporation is developing. M oreover, business íleets are focusing more resources that have become the burden o f the vvhole husiness system.
P ow er: This is a maịor issue that iníluences on all business units in the vvhole system o f the Corporation. T hereíore, it is necessary to ensure full implementation o f legal procedures. The Board o f Directors íìrst needs to set up the plan for change vvith the participation o f Sea Transport Block and other business units in the vvhole system and then it is necessary to report to the Board o f Managers and Shareholders General Meeting for approval to the plan for change.