VIMC records 3.75 trillion VND in profit in 2021

The Vietnam Maritime Corporation (VIMC) had great performance in 2021, earning around 3.75 trillion VND (165 million USD), according to Nguyen Canh Tinh, general director of the shipping giant.

The Vietnam Maritime Corporation (VIMC) had great performance in 2021, earning around 3.75 trillion VND (165 million USD), according to Nguyen Canh Tinh, general director of the shipping giant.

By the end of 2021, the VIMC’s revenues hit over 19.6 trillion VND (862.5 million USD), up 24 percent year-on-year and 29 percent higher than the target.

Notably, its earnings took a steep turn for the better, soaring from a loss of 145.3 billion VND (6.4 million USD) in 2020 to a profit of trillions of dong.

Tinh said the disruption of global supply chains due to COVID-19 had been pushing freight rates up significantly. VIMC has switched from domestic to international transportation in order to turn the rising freight rates to its advantage and succeeded.

“Profits did not come out of thin air but due to our anticipation of rising freight rates since early 2021. We have re-arranged all our shipping routes and had our freighters engaging in international transportation in order to take advantage of the situation,” Tinh explained.

Seaport exploitation continued to be VIMC’s most profitable operation, contributing a lion’s share of 78 percent to total consolidated profit.

The Sai Gon Port, Quy Nhon Port and Hai Phong Port were among seaports that did well last year, Tinh added.

The general director also revealed that freight rates were quite low previously owing to a decade of depression.

It was the ongoing pandemic that has lifted transport costs up worldwide, especially on long routes. In 2022, freight rates are expected to rise at a slower pace but unlikely to drop to pre-pandemic levels.

By late 2021, VIMC has topped 36.6 trillion VND in market cap, with around 12,447 employees on its payroll./.