Sea and River Transport Corporation (VISERITRANS) which is the predecessor of Dongdo Marine Joint-stock Company (DONG DO MARINE) is first-class State-owned Enterprise under the administrative control of the Viet Nam Ministry of Transport, was established and operated on base of Decree No.274/HĐBT adopted on 04th December 1985 by Viet Nam Council of Ministers (whereof, the Viet Nam Ministry of Transport had to be re-orgainized in pusuant to Decision No.1068/QĐ/TCCB-LĐ, dated 01st June1993). By October 2003, VISERITRANS’s Head Office addressed at No. 80B, Tran Hung Dao Street, Hoan Kiem District, Hanoi.
According to Decision No.250/TTg adopted on 29th April 1994 by The Prime Minister and Decision No.578/QĐ-HĐQT issued on 21th June 1996 by VINALINES' Board of Directors, VISERITRANS had to transform into a member company (subsidiary) that has, so far, been partially under the management of VINALINES and also re-organized by being lisenced to more operational functions and some other business activities in the maritime industry.
In October 2003, according to Decision No. 778/QĐ-HĐQT issued on 10th October 2003 by VINALINES' Board of Directors, VISERITRANS was renamed to "Dong Do Maritime Corporation" and moved its head office to No. 58, Nghi Tam Street, Tay Ho District, Hanoi.
As per Decision No. 180/2005/QĐ-TTg dated 18th July 2005 by the Prime Minister regarding "Adjustment on arrangement plan and renovation of State-owned enterprises who are under the management of Vietnam Maritime Corporation from the year 2005 to 2006", upon completing conversion procedures, by 25th December 2006, it has been officially operated in the terms of "Joint-stock Company" under the current name.
After nearly 30 years from establishment, company’s formation and development process can be devided in followed periods:
1. The establishment from 1985 to 1988:
In order to perform urgent political and social tasks required by the Government and the Ministry of Construction of Viet Nam: Carriage of goods from the northern river ports to the South, then transporting food in the backhaul routes, VISERITRANS was in a favor by the Government for subsidized privileges in forms of capital investment, fuel prices, freight rates and other availabilities. Thus, after a short time, VISERITRANS had a fleet counting for up to 24 vessels with a total tonnage of about 20,000 DWT, size of each ranged from 400 to 1200 DWT, provided with suitable draft and engine capacity that were built domestically and funded by the State budget. Besides that, VISERITRANS was also authorized to take over for deployment of a number of river ports such as Khuyen Luong port (Ha Noi), Nam Dinh port, Binh Thuy wharf (Can Tho) and many other facilities which helped provide 1500 men with employment etc… synchronously creating local businesses in accordance with the "sea-river transport" method at that time.
2. From 1989 to 1996:
In the beginning of this period, VISERITRANS continued to develop favorably and started to plan its investment on specific type vessels with bigger tonnage towards the domestic maritime demands. However, amid the country is changing from centralized economic model to free market economic one, it is also when VISERITRANS truely experienced the huge difficulty in its history.
Thus, no futher previleges could be granted by the Government, viewing new challenges arised in the shipping market in addition to the loss caused by a number of incorrect decisions in financial investment, management and operational activities as a whole, at the end of 1993, VISERITRANS was suffered by recession. In addition, an other considerable reason is that the domestic fleet revealed worse like fuel consumption getting higher while prices of diesel oil (DO) escalates, technology and equipment getting backwards, sea-going performance was poor. As a consequence, low commercial efficiency was something unavoidable.
From mid-1994, VISERITRANS really fell further into the extending crisis circumstance, completely lost the ability to balance finance and investing direction. Moreover, high tonnage and dedicated fleet development lost heavily (typically the purchase of New Hope vessel – 7620 DWT caused serious internal disunity). These were the main reasons for stagnant operating management, overdue debt and worst conditions, all that might get it closer to legal proceedings for bankruptcy in quite a predictable not far future etc…
However, the Prime Minister's decision to change VISERITRANS into an independent member of VINALINES in late 1996 was a turning point in its history.
3. From 1997 to 1999:
By the collective efforts by the employees as well as the willingful support by VINALINES’ leaders, other partner enterprises, traditional customers and related Governmental Agencies at the time, VISERITRANS completed its “2 year schedule for bankruptcy prevention” plan optimically, thus somehow helped push the bankruptcy risk down whereof an basis was staged for recovery.
From late 1999, VISERITRANS initiated fundamental innovation for structural re-organization, covering human resouce, capitals, managing and operating methods. In particular, the new Board of Directors has reformed human resource throughout the company, determined to carry out major policy “resolutely removing the backward sea-river shipping method, gradually expanding operations on international routes…” It was one among other important factors that ensured the success of the enterprise in the first renovative period (1997-2000).
4. From 2000 to 2006:
Promoting the success of 1997 - 1999 period with the principles “unity, combine forces”, collective leadership and staff of Dong Do Marine Company had fully utilized any business support offered by homeland and foreign partners, took a good chance for further investment, development, expand production scale as well as thoroughly overcome the existing weaknesses. Anyways, the company did not forget to care for improving quality of management, operation, capital and human resources in order to become a 'medium enterprise – developing stably and owning identifiable trademark in maritime sector”.
Until 2004, Dong Do Marine increased the total tonnage of seagoing fleets up to 61,350 DWT in terms of commercial loans and acquiring counterparts' shares. Since 2005, in order to rejuvenate the fleet, expand the trade areas beyond Southeastern Asia and Northern Asia to South America, West Africa ..., the company proceeded locally new shipbuilding contracts for such as MV Dong Ba – 6,500 DWT, Dong Phu - 12,500 DWT, then buying Japan-based MV Dong Tho - 10,094 DWT, besides it was planning to build handy size vessels (under 40,000 DWT) for 2008-2010 stage so as to replace existing fleet.
Along with the fleet upgrading scheme, the company also focused on expanding the operating scales, diversified different kinds of business and strengthens competitive abilitiy for branches in Hai Phong and Ho Chi Minh etc...
5. From 2007 onwards:
The company officially operated in formity of “Joint Stock Company” from 25th December 2006, DONG DO MARINE was marked by achieving somehow improvement in corporate governance, business management and investment. The first two years after equitization, the company has run its business according to a new model and criteria imposed by the internal controlling system which were consistently based on regulations and resolutions outlined by of the Shareholders' Annual Meeting. Consequently, the 2007 - 2008 annual report showed that business achivement went better than expectation.
However, like other firms in the economy, since the end of 2008, the company's business activities have affected negatively from the global recession. Although applying many solutions such as maximum cutting costs, manage strictly technical conditions of the fleet, strengthen supporting business activities ... but in the declining and fluctuating circumstance of maritime transport market during the past 3 years, the company’s business situation are still difficult.
According to achievements on the developing process, DongDo Marine was honored to be awarded the “Third-Class Labor Medal” by the government. In addition, the company and some individuals who have excellent achievements has been received many different awards from Prime Minister, Ministry of Transport, General Confederation of Labor, Vinaline … Among them, “ISO Golden Cup” awarded by the Ministry of Science and Technology was recognized as the company’s success in applying international standards to the management system that contribute to the development and growth of Vietnam business community during the integration period