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CMC: Never Stops Going Ahead

Posted: Thursday, November 06, 2008

Starting operations as a small production and trading unit under the Ministry of Transport, CMC Investment Joint Stock Company has overcome all difficulties and challenges to become one of fastest-growing and best performing companies. The fruit is attributed to the sound policies and bold business strategies of the companyâ?Ts leaders and employees.
Turning point
CMC Investment Joint Stock Company (CMCI JSC) was formerly the Construction and Mechanical Company No. 1 (COMECHCO) under the authority of the Ministry of Transport. Previously, the companyâ?Ts operations mainly relied on repairing vehicles and equipment provided by the ministry and the Vietnam Motors Industry Corporation (Vinamotor). When the State applied new management regime over state-owned companies, the company had less work to do. Many employees had to leave the company.

Before that circumstance, the company introduced many solutions such as shifting to trading and leasing construction machines like bulldozers, power shovels, rollers and asphalt scatters bearing the worldâ?Ts famous trademarks like Komatsu, Sakai, Hitachi, Hyundai, Caterpillar as well as Chinese products like XCMG and LIUGIONG. Mr Ngo Trong Vinh, Chairman of the Board of Directors, said: â?oIn addition to seeking an outlet, the privatisation was also considered. This move, first of all, helped link and promote the working spirit of the company. Then, it helped mobilise more outside resources for development.â? After one year of preparation, Construction and Mechanical Company No. 1 went public in 2005 and was renamed to Construction and Mechanical Joint Stock Company No. 1.â?
Acceleration
Apart from traditional automobile engineering, CMC also manufactures car bodies from simple to complicated units. Staffed with professional and skilful engineers and workers, the company is committed to providing best products of reasonable prices as well as related services like delivery. Vinamilk has ordered the company to manufacture freezing car bodies and Viettel needs information vehicles. They are regular customers of CMC.

Additionally, CMC won many big projects like building infrastructure systems in industrial zones in Bac Giang and Hai Duong provinces. The firm is preparing to build an office block for lease covering 3,000 square metres on Pham Hung Street.

In 2005, the companyâ?Ts shareholder equity was only VND7.5 billion and revenues were only VND3 billion. However, the company made total revenues of VND100 billion in the first nine months of 2008, 30 per cent more than the initial target set for the whole year, and bagged a pre-tax profit of VND5.3 billion. The owner equity jumped to VND66.6 billion. The average salary of more than 100 employees was increased from VND1.2 million in 2005 to VND2.5 million in 2008.
On April 24, 2008, the Construction and Mechanical Joint Stock Company No. 1 was renamed to CMC Investment Joint Stock Company. On December 11, 2006, shares of the company, with ticker of CMC, were listed on the Hanoi Securities Trading Centre (HASTC).