Member units operate dependently, leading to many limitations. Member units lack initiative in exploiting the market and cannot mobilize capital to invest in necessary equipment and means to serve market needs. Therefore, the efficiency in production and business is not high. Faced with the challenges of innovation in production and business activities, the country has truly opened its doors to all investors. Many foreign investors have come to do business in Vietnam. Many large economic groups and famous brands have penetrated our market. With the innovation mechanism, the acumen of foreign enterprises combined with the flexibility of non-state enterprises has created a constantly developing and sensitive Vietnamese market. Moreover, Vietnam has joined the WTO, which is a very important innovation factor for the country.
The business field of specialized equipment for radio - television - information is also not outside the country's innovation policy and the general market economy law of the country and the world. In order to enhance the leading, core and leading role of state-owned enterprises in bringing information to the grassroots for people in remote areas, border areas and islands, the need to innovate to keep up with new trends and be competitive, EMICO needs to build a model that is consistent with the Party and Government's policy and guidelines for innovation and development of state-owned enterprises to both ensure the good implementation of important political tasks of the industry and at the same time increase competitiveness in the market.
To overcome the limitations of the current management model and organizational structure as analyzed above, the company needs to choose a new, modern management model with an appropriate management structure in terms of financial capacity.
main, in terms of industry and management level. This new model must bring complete initiative to the affiliated units, truly "unleashing" the units in the production and business process. In this new model, the connection between the Corporation and its member units is only investment, financial control, not direct intervention in the daily production and business activities of the units through administrative orders, creating motivation and development capacity for the Corporation and its member units on the basis of creating independence, autonomy, creativity, and decisiveness in the production and business activities of each unit in the Corporation. Improve the operational capacity of the Corporation through many resources, diversify the form of ownership by equitizing some effective operating units with development potential of the Corporation.
The application of the parent company - subsidiary model also aims to achieve the goals of the Corporation such as:
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Fulfill obligations to the State and localities, carry out political tasks on developing radio, television, and information, and ensure good service to essential needs for production development and improve the spiritual life of ethnic minorities in mountainous, remote, isolated, and island areas.
Develop and improve production capacity, competitiveness and business efficiency of enterprises in the trend of international integration of the country, research and apply the development achievements of science and technology to serve the industry and remote areas, border areas, islands... to improve the effectiveness of propaganda work of the Party and State, improve people's knowledge and the level of enjoyment of spiritual culture in the field of mass information.
Ensure and improve all aspects of life for workers, do good social work. Expand other business lines to effectively use existing technical staff, facilities, capital and attract businesses with similar operating criteria to join the association.
Member companies converted into joint stock companies operating under the Enterprise Law have the advantage of mobilizing capital from shareholders, organizations and individuals outside the enterprise, combining existing State capital at the enterprise, establishing a strong enough financial source to invest in additional technical equipment, innovate technology, and meet market requirements. In addition, the parent company - subsidiary model will create the right for companies to be proactive, dynamic, and have the conditions to plan timely, correct and specific business strategies.
2.2.2. Some general information about EMICO Corporation
EMICO Information Broadcasting and Television Development Corporation is a state-owned enterprise under the Voice of Vietnam, established in 1969. Its predecessor was the Radio and Television Technical Materials Company, the first unit to produce, supply and install technical equipment and materials for the radio and television industry nationwide.
In August 1992, implementing Decree 388/HDBT of the Council of Ministers (now the Government) on re-establishing state-owned enterprises, the company was renamed Information Equipment and Materials Import-Export Company, trading name is EMICO, under the Ministry of Culture and Information.
On November 1, 2005, the Prime Minister agreed to approve the project to transfer EMICO Information Equipment and Materials Import-Export Company under the Voice of Vietnam to operate under the parent company - subsidiary model.
On April 10, 2006, the General Director of Voice of Vietnam issued Decision No. 171/QDTNVN to establish the parent company: Broadcast Information Development Corporation, international transaction name: Broadcast Information Development Corporation, abbreviated name with the brand name EMICO.
Since September 25, 2006, EMICO Information Equipment and Materials Import-Export Company has operated with a new name and new seal: Information Broadcasting and Television Development Corporation.
2.2.3. Current status of parent company - subsidiary model at EMICO Corporation
2.2.3.1. The move of Information Equipment and Materials Import-Export Company in switching to operating under the parent company - subsidiary model
To operate under the parent company - subsidiary model, Information Materials Equipment Import Export Company has prepared for itself a lot of experience as well as resources. Specifically:
Over the years, the company has been the leading unit in implementing important political tasks of the radio and television industry nationwide, especially for projects on technological equipment of the Voice of Vietnam as well as target programs on radio and television, bringing information to the grassroots for remote areas, borders, islands... and promptly serving unexpected political tasks. Carrying out the reserve of equipment, materials, and components at the request of the General Director of the Voice of Vietnam to promptly provide information and propaganda for areas with complicated political situations, serving and rescuing areas of natural disasters, floods...
Effectively carry out the cooperation of the Voice of Vietnam with the Lao and Cambodian national Radio and Television Stations under the direction of the Prime Minister and the General Director of the Voice of Vietnam. Provide materials, components, equipment and timely repair equipment systems for friendly stations to serve the internal and external propaganda of friendly countries.
Based on and comparing the criteria and classification list of state-owned companies and independent accounting member companies of state-owned corporations in Decision 155/2004/QD-TTg dated August 24, 2004 of the Prime Minister, the Information Materials Equipment Import-Export Company meets the conditions to remain an independent state-owned company with 100% state capital, belonging to the type of enterprise "ensuring essential needs for production development and improving the material and spiritual life of the whole society, especially for ethnic minorities in mountainous areas, remote areas... in the field of mass media (radio - television - information).
Pursuant to Decree 153/2004/ND-CP dated August 9, 2004 of the Prime Minister regulating the organization and management of state-owned corporations and the conversion of state-owned corporations and independent state-owned companies into the parent company - subsidiary model. The Information Equipment and Materials Import-Export Company has submitted to the General Director of the Voice of Vietnam a plan to arrange and convert the operating model into the parent company - subsidiary model. The conversion steps are as follows:
First: Arrange and convert Information Materials Equipment Import-Export Company and its affiliated units into a parent company - subsidiary model.
Second: Expand and accept units in the same industry and units with the same operating criteria to effectively utilize the technical team.
techniques, facilities, and existing capital to develop production and business. Carry out procedures to equitize member units (subsidiaries).
2.2.3.2. Current status of operations under the parent company - subsidiary model of EMICO Corporation
The parent company - subsidiary model of EMICO has been operating since the end of the third quarter and the beginning of the fourth quarter of 2006.
a. Organizational structure
Currently, the Corporation has 5 functional departments and 9 member units of the parent company. Regarding human resources, the total number of employees of the Corporation is 450 people, including: 7 people with post-graduate degrees; 295 people with university degrees; 23 people with intermediate degrees; and 125 people with other workers. In addition, there are many collaborators in fields related to the regular activities and functional departments of the company such as: consulting, technology, science, engineering. EMICO Corporation has a team of technical staff with a lot of experience in researching, applying and manufacturing equipment to supply and install to meet and satisfy all needs of the radio - television, information and social industries.
Arrange specific activities as follows:
Board of Directors
General Director, Deputy General Directors, Chief Accountant and support staff.
The parent company's apparatus is the apparatus of the Corporation.
Functions, duties and powers of the Board of Directors, General Director, Deputy General Directors, Chief Accountant and supporting staff: are specifically stipulated in the Charter of organization and operation of the parent company.
+ Relationship between parent company and subsidiaries:
Although the parent company and its subsidiaries are identified as independent legal entities; the Corporation is subject to the State Enterprise Law and its subsidiaries are subject to the Enterprise Law, there is a very close economic relationship between the parent company and its subsidiaries, which is fundamentally different from the current management model. That economic relationship is stipulated in the Corporation Charter and the Charters of its subsidiaries as follows:
* For parent company:
- The parent company and its subsidiaries are independent legal entities. In addition to preparing its own financial statements, the parent company must also prepare consolidated statements for the entire system (including the parent company's financial statements and the subsidiaries' financial statements).
- In addition to its production and business functions, the parent company also performs the function of representing the owner (investor) for its subsidiaries in the following main aspects:
++ Exercise the rights of shareholders and capital contributors through their representatives at subsidiaries in accordance with the provisions of law and the charter of the subsidiary.
++ Appoint, dismiss, reward, discipline... representatives of the capital contributed by oneself to the subsidiary.
- Organize inspection and control of the use of the parent company's capital in subsidiaries according to the provisions of law and the charter of the parent company and subsidiaries.
- Coordinate between parent company and subsidiaries on marketing, survey, investment planning... Divide production and business stages and products for subsidiaries to implement through economic contracts.
- Training and fostering professional skills for management staff to meet human resource needs at the parent company and subsidiaries.
- Support subsidiaries with capital at internal interest rates when subsidiaries have sudden needs.
- Support, rent experts and specialized equipment when subsidiaries have needs.
- Invest capital in subsidiaries based on the subsidiaries' proposals through technical and economic arguments or guarantee for subsidiaries to borrow capital from banks for investment according to the principles of efficiency, preservation and development of capital sources.
- Earning profits from the Corporation's capital contributions to its subsidiaries.
- The Corporation's profit is the parent company's direct operating profit and the profit earned from capital invested in subsidiaries (dividends).
* For subsidiaries:
- Subject to inspection and supervision by the parent company in accordance with the provisions of law and the charter of the subsidiary.
- Flexibly organize the use of capital that the parent company invests in the subsidiary, and be responsible to the parent company as well as other capital contributors for the use of the subsidiary's capital.
- Participate in implementing stages in the parent company's production and business chain according to commitments in the economic contract.
- Receive support from the parent company in terms of capital, training, and professional development of staff through economic contracts.