VEAM will this year focus on the market by developing a sales network, reducing costs and improving information shared between the producer and customers.— Photo xetaidonganh.com

HA NOI (Biz Hub) — The Vietnam Engine and Agricultural Machinery Corporation (VEAM) targets earning more than VND10.5 trillion (US$467.56 million) in revenue this year, a 6 per cent increase compared with last year.

Speaking at a conference on January 13, the corporation's deputy general director, Ngo Van Quyen, said his firm's industrial production growth this year would come from auto production.

The industrial production is expected to amount to more than VND5 trillion ($222.5 million) of the total revenue, showing 10 per cent growth.

VEAM, established in 1980, mainly produces agricultural equipment and machines, tractors, trucks and buses, as well as motorbikes and spare parts.

General Director Tran Ngoc Ha said VEAM would focus on the market by developing a sales network, reducing costs and improving information shared between the producer and customers.

Ha said VEAM would actively support new product research programmes and new production methods, particularly for thermal treatments, which will be part of the auto supply and production chain VEAM expects to join later.

VEAM will also emphasise training and improve the management system, which is seen as a condition of survival among its businesses. Joining the supply and production chain when Viet Nam signs up for international trade agreements is a natural first step for the company.

At the conference, Deputy Minister of Trade and Industry Cao Quoc Hung required VEAM to further raise competitiveness in the context of integration, focusing on corporate management and the restructuring of businesses to achieve effective results.

He wanted the corporation to concentrate on developing technology to create new, competitive products and raise the percentage of locally-produced parts.

The corporation earned more than VND9.9 trillion ($440.6 million) in revenue last year, a 7 per cent increase compared with its target and a 38 per cent increase compared with 2014. Its export value was $35.6 million, up 7 per cent over 2014.

It also sold 3,219 units in 2015, 34 per cent higher than the figure for 2014. — VNS