Report of the Board of Management
Members and structure of the Board of Management
The Board of Management of the 5-year term from 2018 to 2023 includes 11 members elected by the General Meeting of Shareholders at the meeting on May 30, 2018.
In 2019, the General Meeting of Shareholders elected 1 member to replace 1 member who resigned.
In 2020, the Board of Management operated with 11 members, including:
- 6/11 members are currently working at Gemadept.
- 5/11 members are from investment organizations.
- 4/11 members have foreign nationality.
- 3/11 members are female.
The Board of Management has assigned the main tasks to members since May 2018. In 2020, there is no change in the assignment of tasks in the Board of Management, in which:
- Chairman: Mr. Do Van Nhan
- Vice Chairman: Mr. Chu Duc Khang
- Vice Chairman: Mr. Phan Thanh Loc
- General Director: Mr. Do Van Minh
- PIC of Management: Mr. Vu Ninh
Evaluation of the Board of Management on all aspects of Gemadept's activities
REVENUE IN 2020 Reached
2,606
Billion VND
PROFIT BEFORE TAX IN 2020 Reached
513
Billion VND
Some ports in the North and Central region had a slight decrease in volume. Due to competition and some shipping lines moved their ships to the newly built ports in the Lach Huyen area, the revenue and profit of the Ports located in Hai Phong did not meet the set plan. The Ports in the South, including Phuoc Long Port and Binh Duong Port, have taken advantage of the opportunities in the last few months of the year by actively opened more chain services, improved their customer services, etc., thus increasing their output and achieved good growth in both revenue and profit.
Gemadept's Logistics includes 6 different sectors. Despite the strong impact of the Covid-19 pandemic, Gemadept’s Logistics still successfully completed the plan in terms of volume, revenue, and profit. Notably: OOG cargo transport service has done many big projects in 2020, including the transporting of Metro carriages in HCMC that has been reported by many media; The cold chain logistics also has a strong growth in profit in 2020 due to the sudden increase of inventory.
The Company has focused resources to implement the construction of Gemalink Deep-sea Port. The construction and installation of equipment were completed at the end of the year and the first commercial vessel was welcomed right in January 2021. In 2020, the Company has also invested in increasing the capacity of Binh Duong Port and Nam Dinh Vu Port, increasing the capacity of the port to accommodate 48,000 DWT vessels by expanding the area of the CY yard and purchasing more RTG cranes. Gemadept also invested in building the S1 river container ship with a capacity of up to 240 TEUs.
In 2020, the Company continued to promote the centralized governance model, setting up centers for operation, technical, and marketing in Hai Phong. Well implemented projects on BSC/KPI; increased the efficiency of internal services; enhanced the strengths of the comprehensive integrated Port and Logistics system; increased the application of technology such as Smart Port, Webportal, using green fuel and solar power at Tan Son Nhat Airport SCSC and Mekong Logistics cold storage in the Mekong Delta.
Evaluation of the Board of Management on the activities of the Board of Directors in 2020
Gemadept's Board of Directors consists of the General Director and 4 Deputy General Directors. In 2020, the General Director assigned specific tasks and responsibilities to the Deputy General Directors to manage each segment of Port, Logistics, Office, Marketing, and Investment, thus improving the efficiency in directing, having the full authority and responsibility to handle troubles arising in the process of production and business.
In 2020, due to the outbreak of the pandemic, social distancing was required. This stopped the large-scale annual business conference from being held. Right in the middle of March 2021, the Board of Directors had a meeting with key Directors and Heads of Departments to agree on guidelines, assign targets, action scenarios, and solutions to cope with the Covid-19 pandemic. During the year, the Board of Directors actively applied production measures, alternately working from home so work can go smoothly and ensure stability to production; drastically cut costs, reduce wages, and manage debt well; extending and reducing loan interest rates, asking suppliers to reduce prices, etc. The combination of these measures has brought good results.
The Board of Directors regularly consults with the Board of Management on senior personnel; Organizing extended meetings with the participation of a number of the Board of Management members that are in charge; Carry out several surveying trips and works in Hai Phong, Quang Ngai, Da Nang, Vung Tau, Dong Nai, etc.
Through questioning and monitoring activities at regular meetings, through coordination and directions, the Board of Management highly appreciated the flexible and timely management measures of the Board of Directors in dealing with the different situations, overcoming difficulties, and ensuring business activities.
With the results achieved in 2020, the Board of Management gave positive feedbacks to the management of the Board of Directors on all four aspects: implementation of business targets, project implementation, internal management, and the preparation for the 3rd 5-year plan.
Comply with regulations on corporate governance
In 2020, Gemadept has properly implemented the regulations on corporate governance for listed companies such as:
- Holding the General Meeting of Shareholders on June 22, 2020, already postponed 1 month due to the pandemic situation, which required social distancing.
- Organizing periodical meetings for the Board of Management, online meetings were held and written opinions were collected.
- Complete the 6-month, 1-year management reports on time as prescribed by the Securities Commission.
- Adequately completing the annual report and sustainable development report.
- Properly implementing the internal control regulations, risk prevention, HSSE works - Health Security Safety Environment throughout the system.
- Disclosing sufficient, accurate, and timely information to the state management agencies and shareholders. Gemadept's website has published many articles reflecting the situation of business activities.
Changes and improvements in the Group management policy in 2020
In order to cope with the new situation and be consistent with the policy and orientation on general governance, right from the beginning of 2020, Gemadept has made many changes. Specifically:
- Promote the centralized management of the production group in Hai Phong including 3 segments: Marketing, operating, and technical.
- Continue to expand the scope and categories in centralized management in the head office departments with member units in terms of procurement, human resources, legal, Marketing, and have cut costs, saving billions of VND.
- Applying adjustments and reduction of wages for several months to respond to the pandemic situation to ensure business activities and preventing unemployment.
- Change in personnel arrangement: The Board of Directors has assigned the transfer of Directors for the units in Hai Phong and Da Nang - Dung Quat.
Plan to enhance management activities in the coming time
To implement the 5-year goals, right in 2021, Gemadept will implement management projects to carry out the goals and vision of 2025, change to be the best and serve customers better.
- Implement human resource strategy, focusing on successors, human resource quality, salary framework, and corporate culture.
- Promote research and development to have more projects, increase services, properly implementing Port projects Phase 2 and Logistics projects.
- Deploying BSC/KPI projects in new directions, dividing tasks into groups for all 4 scorecards of the Balanced Scorecard system.
- Reviewing production processes, promulgating a number of guidelines and regulations on aspects of accounting, internal audit, procurement, etc.
Changes in the Board of Directors during the year
In 2020, the Board of Directors has no change in the number of personnel. There is an adjustment in the assignment of tasks to the 4 Deputy General Directors in order to be flexible with the new situation of the market, operation, and building new ports.