After restructuring, Vinashin’s debt stands at 53.054tr dong

Latest news on Vietnam Shipbuilding Industry Group (Vinashin) was announced at the press conference held on late November 19 by the Ministry of Transportation (MoT).

One day ago on November 18, prime minister Nguyen Tan Dung signed a Decision No 2108/QD-TTg officially approving the restructuring plan for this group.

Information from MoT showed that after the first restructuring phase, the shipbuilder’s current number of offshoots reduced from 289 units to 259 units including the holding company along with 38 one-member limited companies, another 38 joint stock companies with over 51% stake held by the group, three joint venture companies, 23 associated companies and 156 arms of Vinashin’s subsidiaries.

Till August 30, 2010, Vinashin’s total labour force decreased from 49,454 people to 42,660 people and the group’s total liabilities also fell from 86.565 trillion dong on the group’s total asset of 104.649 trillion dong, to 76.241 trillion dong on the group’s total asset of 95.672 trillion dong.

Implementing the overall restructuring plan approved by PM, Vinashin’s total number of offshoots will be only 43 firms including one holding company, 19 subsidiaries, one associated company and 22 arms of the group’s subsidiaries.

The shipbuilder’s total labourers under the new organisation model are 29,660 people. The group’s total debts are 53.054 trillion dong on total asset of 68.243 trillion dong.

The group has started restructuring 216 offshoots since November 2010 and expected to complete in 2013, Nguyen Ngoc Su, Vinashin’s member association chair, said.

As for business and production situation of Vinashin, according to the information of the press conference, Vinashin’s total output value in Jan-October reached 12.395 trillion dong, equalling to 38% of the year’s target. Of which, the total value of ship building and repairing was 7.519 trillion dong or 45.8% of the year’s plan.

Currently, the shipbuilder has a total number of valid contracts of 130 ships worth US$2.1 billion.

From now till the end of December, 2010, the group will hand over 21 ships, bringing the total number of ships being handed over in 2010 to 57 units valued at US$573 million.

As expected, in next year, the shipbuilder will hand over 75 ships, earning 15.6 trillion dong.

Till date, Vinashin’s large shipyards have completely made paying off all salaries and social insurance for workers with average income of 2.83 million dong per person per month.

However, Vinashin’s small shipyards and members operating in non-core sector still owe salaries and social insurance of labourers till September 2010 with the total debts of about 102 billion dong of salaries and 134 billion dong of social insurance.

The group is mapping out plan to borrow 100 billion dong to pay salaries for workers in 2010, according to representative of Vinashin. – TBKTVN

Tags: Vietnam shipping industry, Vinashin restructure