Last update 10/25/2010 9:55:06 PM (GMT+7)

New Vinashin to be launched soon: says Government

VietNamNet Bridge - A new Vietnam Shipbuilding Industry Group, Vinashin, would be unveiled this month or early November at the latest, Deputy Prime Minister Nguyen Sinh Hung told reporters at the sidelines of National Assembly group discussion over the weekend.

Troubled shipbuilding group to be restructured for survival
The NA group discussed 2010 socio-economic target implementation and 2011 outlook.

The new shipbuilding group will focus on its core business, which are shipbuilding and repairing; supporting industries for shipbuilding; and providing training courses in the field.

Private and foreign firms are encouraged to join the group’s shipbuilding processes.

The Government will also review Vinashin’s workforce, dissolve ailing subsidiaries and recover core operations of the group, develop the domestic shipbuilding industry and the national marine economic strategy.

The Vietnam Shipbuilding Industry Group, Vinashin, should be able to build ships for the Ministry of National Defense.

What’s the government’s solutions to Vinashin's bad debts?

The Government is working with the shipbuilding group’s creditors to reschedule or reduce bad debts. Vinashin has more than 200 offshoots. The Government will transfer or equitize the group’s certain affiliates and projects to recoup capital.

Restructuring Vinashin has met the set requirements?

As I have said, the plan is on the track.

Has the process met any problems?

The most problem is to solve the shipbuilding group’s troubles at the same time like: working with Vinashin’s creditors to reduce bad debts; restarting the group’s operations and making profits.

The Government will continue to replace senior executives in the shipbuilding group by qualified persons and apply new governance.

The steering committee for the restructuring of Vinashin Group will support the shipbuilder to maintain shipbuilding contracts signed earlier and resume business of its plants.

The Government has transferred Vinashin Group’s ships to the Vietnam National Shipping Lines (Vinalines) and the Vietnam National Oil and Gas Industries Group (PetroVietnam).

The transfer has helped Vinashin recover core businesses and maintain jobs for workers. Vinashin’s outstanding debt stood at about VND90 trillion (US$4.5 billion).
The group’s leaders had kept making up financial reports to the Government since 2005 despite of many inspection and auditing by the both domestic and international agencies.

Source: Tuoi Tre