The Vietnamese government has decided to restructure Vinashin Business Group for its ineffective operations as a result of squandering investments.
The move aims to limit the group’s non-core business which is among the major cases of its bad performance over the recent years; the newspaper cited a local government official.
Under the government’s decision, Vinashin will operate as a limited company from July 1 and 12 affiliates of it will be handed over to Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Shipping Lines (Vinalines) before end-September this year.
PetroVietnam will take over Lai Vu Shipbuilding Industry Co., Nghi Son shipbuilding industrial park, NhonTrach Specialized Shipyard, Dung Quat Shipbuilding Co., Soai Rap Shipbuilding Industry Corp and Hoang Anh Shipbuilding Industry JS Co.
Meanwhile, six others to be transferred to Vietnam National Shipping Lines (Vinalines) are Hai Ha Seaport-Industrial Zone, Vinashin Dinh Vu port, Hau Giang Shipbuilding Industry Development Co., Ltd, Nam Can Shipbuilding Company, Vinashin Ocean Shipping Company and Bien Dong Shipping Company.
As Vinashin completes its restructure, the government will continue issuing bonds to raise funds for the group to implement its major projects.
The group will also receive US$500 million funded by the Asian Development Bank (ADB) annually to complete shipbuilding projects canceled by its partners.
Vinashin’s total debts reached nearly VND19.9 trillion (US$1.04 billion) by the end of 2008, the State Bank of Vietnam said in a report released last November.
By that time, the firm’s total overdue loans were estimated at VND3.81 trillion, accounting for 19.17% of its outstanding loans and 91.4% of local seven state-owned groups covered in the report.
Vinashin total debts have accumulated to more than VND70 trillion since 2006, according to the report. (STD, Vnexpress)
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