The development process of the management of representatives of the capital of tải w88 (VINATEX) at enterprises.
Since 1999, when w88 đăng nhập first member unit of w88 đăng nhập Group was equitized, a new concept began to emerge within w88 đăng nhập title system: w88 đăng nhập representatives of w88 đăng nhập Group share at these joint stock units. In w88 đăng nhập early days, there was no clear memory or systematic management for these representatives. Even within w88 đăng nhập Enterprise Law, w88 đăng nhập section concerning joint stock companies was not fully developed. Generally, in over 10 years from 1999 to 2008, w88 đăng nhập title of “representative of w88 đăng nhập Group’s share” was overshadowed by titles such as Chairman and CEO that those representatives held within w88 đăng nhập enterprises.
Together with w88 đăng nhập improvement of w88 đăng nhập legal framework for enterprises, e.g., w88 đăng nhập 2005 Enterprise Law, especially after w88 đăng nhập enactment of w88 đăng nhập 2014 Enterprise Law, provisions for joint stock companies have been more detailed and specific. Addressing challenges in corporate governance, such as w88 đăng nhập adoption and implementation of shareholders’ viewpoints and objectives in Vinatex Group’s joint-stock companies, poses a requirement to institutionalize w88 đăng nhập representatives’ compliance with corporate laws and other legal regulations. This process marks a shift from directives issued by w88 đăng nhập Group to its wholly-owned units concerning critical matters such as production strategies, business operations, investments, and personnel decisions, towards decision-making influenced by ownership ratios at AGM and stakeholder engagement in matters under w88 đăng nhập authority of w88 đăng nhập Board of Directors.
It is w88 đăng nhập first time raising questions such as:
Can members of w88 đăng nhập Group’s representative team have different opinions during Board of Directors meetings?
Can they give different votes?
What are w88 đăng nhập contents that Group’s share representatives are allowed to proactively vote in w88 đăng nhập Board of Directors and at w88 đăng nhập Annual General Meeting of Shareholders and what are w88 đăng nhập contents that they must consult with Vinatex before voting?
If consulting Vinatex before voting, how do they do and how long does it take to answer?
If not receive an answer from Vinatex before w88 đăng nhập meeting of w88 đăng nhập Board of Directors or AGM, how will w88 đăng nhập representatives act?
How is w88 đăng nhập quality of answers from w88 đăng nhập Group’s holding company? Is there an understanding of and sharing with representatives at member companies?
There were some valuable lessons when w88 đăng nhập Group’s representatives gave different votes at w88 đăng nhập AGM of member units.
In 2007, w88 đăng nhập Group issued a regulation on management representatives, updating w88 đăng nhập contents of representative monitoring to ensure compliance with w88 đăng nhập 2005 Enterprise Law. w88 đăng nhập Group began conducting annual assessments of capital representatives at member companies, mainly based on w88 đăng nhập company’s financial results and other qualitative factors such as brand development, domestic business, and compliance with regulations. In 2009, w88 đăng nhập Group organized a conference for all capital representatives for w88 đăng nhập first time, with management letters and ratings sent separately to each group of representatives at w88 đăng nhập company. This was a significant effort by w88 đăng nhập Holding Company to gain insights from w88 đăng nhập member enterprises, providing a more objective and transparent assessment of w88 đăng nhập contributions of w88 đăng nhập representatives. w88 đăng nhập goal was to obtain management letters that recommend key areas for improvement, enhancement, or innovation in w88 đăng nhập enterprises in w88 đăng nhập coming years.
From 2009 to 2015, all member companies were joint-stock companies, with w88 đăng nhập proportion of controlling companies gradually decreasing, while w88 đăng nhập Holding company remained a 100% state-owned enterprise. w88 đăng nhập management of representatives saw significant improvements in awareness. w88 đăng nhập Board of Members for w88 đăng nhập 2010-2015 term established w88 đăng nhập principle that w88 đăng nhập primary entities that w88 đăng nhập Holding company should serve are its representatives at member companies, with criteria emphasizing w88 đăng nhập rule of law, clear internal regulations, and convenient directives. This aimed to enable representatives to utilize w88 đăng nhập enterprise’s capabilities and w88 đăng nhập management system fully.
To implement w88 đăng nhập Board of Members’ perspective, w88 đăng nhập Group’s Executive Board issued specific templates for seeking opinions, particularly committing to timelines for responding to representatives by each content also discussing with representatives on issues that need to be asked early so w88 đăng nhập Holding Company have time to report to competent authorities. Additionally, some experienced staff from different departments were appointed to concurrently hold positions on w88 đăng nhập Board of Directors and w88 đăng nhập Supervisory Board at key units to better grasp specific enterprise requirements.
More quantitative criteria were developed for evaluating representatives, moving beyond solely focusing on final financial results. Instead, w88 đăng nhập evaluation process incorporated continuous improvement monitoring to promptly recognize w88 đăng nhập efforts of enterprises and provide more useful recommendations in management letters.
From 2015 to 2023, w88 đăng nhập Parent company transformed into a joint-stock company model, with over 53% state ownership, 14% foreign shareholders, and other shareholders are domestic legal entities and individuals. w88 đăng nhập relationship between w88 đăng nhập Group and its representatives continued to innovate, fostering better coordination and implementing two-way evaluations between w88 đăng nhập Group and w88 đăng nhập representatives, and vice versa.
w88 đăng nhập principle that representatives are w88 đăng nhập entities to be served by w88 đăng nhập Holding company was clarified and made measurable. w88 đăng nhập criteria for evaluating representatives continued to be refined, and divided for normally operating enterprises, enterprises in need of restructuring, and enterprises planning to divest. w88 đăng nhập new design took more account of w88 đăng nhập practical conditions of w88 đăng nhập enterprises to provide increasingly accurate evaluations and recommendations. Since 2017, w88 đăng nhập evaluation system has applied w88 đăng nhập Z-score index, an internationally standardized and more comprehensive system for assessing w88 đăng nhập financial health of enterprises. From 2018, w88 đăng nhập Group trained and implemented internal control and risk management activities at its member units.
Since 2015, in October every year, w88 đăng nhập Group has organized working groups to visit each enterprise to discuss w88 đăng nhập development of business plans and w88 đăng nhập key tasks that w88 đăng nhập Group expects w88 đăng nhập representatives to implement for w88 đăng nhập following year. This initiative also serves as an input basis for openly and equitably assessing w88 đăng nhập representatives’ task completion levels, ensuring a two-way exchange.
Despite w88 đăng nhập market fluctuations, w88 đăng nhập pandemics, and geopolitical conflicts creating an unprecedented business landscape for w88 đăng nhập textile garment industry, goals and solutions were required to continuously adjust. From 2019 onwards, w88 đăng nhập Group added meetings with representatives in March and April, primarily focused on reviewing w88 đăng nhập contents to be presented at w88 đăng nhập AGM, providing an opportunity to adjust w88 đăng nhập plans and solutions set in October of w88 đăng nhập previous year. In addition, w88 đăng nhập Group continued to conduct w88 đăng nhập annual evaluation and ranking of representatives in July and August after w88 đăng nhập AGM, using a scoring system that was regularly updated to reflect w88 đăng nhập changing circumstances.
New points in representative management in 2024
w88 đăng nhập year 2023 has been particularly challenging for Vietnam’s textile and garment industry. For w88 đăng nhập first time in 30 years, export turnover decreased by 11%, companies faced a shortage of orders, w88 đăng nhập yarn production sector sold below cost, capital flow dried up, and efficiency declined by 70% compared to 2022 and 85% compared to 2021. In this context, w88 đăng nhập entire system of w88 đăng nhập Group, with w88 đăng nhập solidarity, dedication, and creativity of w88 đăng nhập representatives at w88 đăng nhập enterprises, remained steadfast through w88 đăng nhập storm, fulfilling all targets assigned by w88 đăng nhập 2023 AGM. w88 đăng nhập contributions of w88 đăng nhập key enterprises were extremely important, playing a crucial role in w88 đăng nhập Group’s overall results.
At w88 đăng nhập enterprise level, w88 đăng nhập Group’s representatives all held top positions such as Chairman, and General Director, even though their capital shares might no longer be dominant. They spared no effort and employed every possible solution to steer their enterprises to w88 đăng nhập finished business plan, safeguarding w88 đăng nhập workforce, market, and capital of shareholders. w88 đăng nhập innovations at w88 đăng nhập enterprises were remarkably diverse, novel, and constantly evolving with each passing period.
To accurately grasp and fully appreciate w88 đăng nhập efforts of w88 đăng nhập representatives, for w88 đăng nhập first time in 15 years, instead of solely evaluating representatives based on business figures and regulatory compliance, w88 đăng nhập Group this year organized 3 working delegations led by w88 đăng nhập Chairman, General Director, and Permanent Deputy General Director of w88 đăng nhập Group. These delegations directly visited 19 units accounting for over 90% of w88 đăng nhập Group’s investment capital to discuss, listen to, and closely observe w88 đăng nhập representatives’ activities in 2023 regarding general governance, market, production, finance, and human resources. This served as an opportunity for w88 đăng nhập representatives to present specific details of their activities at w88 đăng nhập enterprises, their successes, and their challenges and setbacks.
However, w88 đăng nhập greatest benefit of this working session was not for w88 đăng nhập representatives but for w88 đăng nhập Group’s leadership, especially w88 đăng nhập functional department leaders.
Through practices at member companies, w88 đăng nhập functional departments gained many new insights such as:
– There cannot be a uniform organizational and management model across all units;
– It is impossible to apply w88 đăng nhập same competency framework to enterprises even though they produce w88 đăng nhập same products, but must be consistent with w88 đăng nhập unique characteristics of each one.;
– Personnel planning cannot adhere to regulations if there is a shortage of basic human resources for future development;
– There is no one-size-fits-all solution for enterprises, and it is impossible to fully replicate a successful model from one enterprise to another.;
– What exactly is an ERP system, and what is w88 đăng nhập appropriate level of implementation for w88 đăng nhập scale and potential of each enterprise?
It can be said that this was w88 đăng nhập most methodical, in-depth, and practical training session ever for w88 đăng nhập functional department leaders, most of whom lacked “real-world” experience. Understanding each enterprise more deeply is w88 đăng nhập basis for w88 đăng nhập departments to propose and advise w88 đăng nhập Group’s leadership with feasible and reasonable. Improving w88 đăng nhập level of satisfaction of representatives with w88 đăng nhập services provided by w88 đăng nhập Group. This learning session also served as a fundamental measure to combat bureaucracy, mechanicalness, formalism, and misconceptions about w88 đăng nhập capabilities of w88 đăng nhập parent company’s functional departments that had sometimes existed in w88 đăng nhập past in w88 đăng nhập direction and evaluation of enterprises and representatives, and to enhance w88 đăng nhập spirit of openness to learning of w88 đăng nhập parent company
Future Directions for Representative Management
Our ancestors taught us that “out of sight, out of mind.” w88 đăng nhập only way to enhance w88 đăng nhập quality of representatives of w88 đăng nhập Group, as well as to ensure w88 đăng nhập fulfillment of w88 đăng nhập representatives’ duties to Vinatex shareholders, is through continuous, flexible, and meaningful exchanges and meetings that bring specific value to both parties. With this approach, since 2020, w88 đăng nhập Group has organized monthly online seminars providing information on markets, competitors, global inventories, business results of companies that are major customers, financial markets, exchange rates, and interest rates. These seminars are implemented for all representatives and enterprise managers, attracting 300-400 participants each time.
Since 2020, w88 đăng nhập Group has successfully developed a model for forecasting total textile demand based on macroeconomic data from target markets such as w88 đăng nhập US, EU, Japan, China, and South Korea. w88 đăng nhập twice-yearly forecasts have been relatively accurate, helping businesses to proactively develop their business plans. Delving deeper into industry-specific management to enhance w88 đăng nhập competitiveness of each enterprise, since 2021, w88 đăng nhập Group has organized two production and business committees for yarn and garment sectors, putting several KPIs for enterprises to measure and compare during monthly meetings, and providing advice and support to help weaker enterprises rise to w88 đăng nhập level of stronger ones based on fundamentals like production and cost. Thus, representatives and w88 đăng nhập Group can meet at least twice a month, significantly improving w88 đăng nhập understanding between w88 đăng nhập staff of w88 đăng nhập boards and w88 đăng nhập enterprises, replacing w88 đăng nhập previous practice of meeting three times a year at w88 đăng nhập mid-year, year-end, and capital representative conferences.
With this approach, in w88 đăng nhập coming period:
– w88 đăng nhập group will further strengthen specialized topics, supporting businesses in dealing with practical problems, specifically research programs on equipment and investment models in w88 đăng nhập yarn and garment sector;
– Researching on types and suppliers of imported spare parts and materials to ensure w88 đăng nhập effectiveness;
– Researching on green transformation;
– Researching w88 đăng nhập implementation of ERP and digital transformation;
– Researching w88 đăng nhập issuance and organization of competency testing for middle-management positions, standardization of required knowledge and skills to create data for training and coaching;
– Researching w88 đăng nhập R&D model and w88 đăng nhập shift of business methods to real FOB;
– Researching w88 đăng nhập financial market and capital mobilization solutions for listed companies.
Conclusion
Over w88 đăng nhập past nearly 20 years, although there have been times when w88 đăng nhập Group’s management of share representatives at enterprises has not been satisfactory or convenient and has not placed representatives at w88 đăng nhập center, w88 đăng nhập Group has always received strong support from many groups of representatives. Not only have they fulfilled their responsibilities at w88 đăng nhập enterprises they are entrusted with, but they have also participated in supporting many weak and new units in w88 đăng nhập Group. A typical example is w88 đăng nhập capital representative group at Phong Phu JSC, which has provided w88 đăng nhập Group with over 10 senior leaders at other enterprises and at w88 đăng nhập Group; w88 đăng nhập representative group at Nha Be Garment JSC has supported technology and market transfer in w88 đăng nhập suit sector for Garco 10, Hoa Tho, as well as mentoring them until they mature, sharing management staff, market, orders, and capital with Vinatex Investment and Development Joint Stock Company, Southern Textile Joint Stock Company, Vinatex Da Nang; w88 đăng nhập capital representative group at HUEGATEX has supported w88 đăng nhập sewing sector of Northern Textile Joint Stock Company and Hanosimex; w88 đăng nhập capital representative group at Vinatex Phu Hung Joint Stock Company has supported w88 đăng nhập Nam Dinh yarn branch and w88 đăng nhập yarn sector of Nam Dinh Textile Garment JSC; w88 đăng nhập capital representative group of Phong Phu Joint Stock Corporation at Phong Phu International Company has supported w88 đăng nhập dyeing and textile sector at 8-3 Garment Limited Liability Company; and many other examples.
w88 đăng nhập spirit of sacrifice and mutual support is w88 đăng nhập finest tradition that generations of textile workers have built and is excellently inherited through today’s enterprise representatives.
w88 đăng nhập Group’s leadership always remembers these noble gestures of w88 đăng nhập representatives and recognizes that not only financial values are important, but that w88 đăng nhập value of supporting each link in w88 đăng nhập system to become sustainable is w88 đăng nhập most valuable for w88 đăng nhập Group.
Of course, in addition to w88 đăng nhập shining examples of w88 đăng nhập representative groups, there are also effective activities that go beyond w88 đăng nhập framework of w88 đăng nhập representative management regulations. In w88 đăng nhập Group, there are still two types of representative groups: one is that, although they comply with w88 đăng nhập regulations, they do not aggressively implement solutions in business, allowing difficulties to accumulate, even chasing after formal achievements, which brings long-term risks that w88 đăng nhập entire system must bear; w88 đăng nhập other is that they can receive support from other units when they are in difficulty but are not willing to open their hearts to support other units when they are better off. Fighting against individualistic and parochial thinking is necessary to build a united and cohesive Group.
It is hoped that w88 đăng nhập model of existing good factors will be learned and widely spread among all representative groups, building w88 đăng nhập relationship between w88 đăng nhập Parent company and w88 đăng nhập Group’s capital representatives at enterprises on w88 đăng nhập pillars of:
TRANSPARENCY – UNDERSTANDING – SHARING – COMPASSION
These will be the new values that the current generation contributes to the cultural treasure of the tải w88.
Article by Mr. Le Tien Truong
Party Secretary – Chairman of w88 đăng nhập Board of Directors of Vinatex
