Committee set up to restructure giant Vinashin

Prime Minister Nguyen Tan Dung has decided to establish a steering committee for restructuring the country’s largest ship builder, Vinashin, to help it rapidly stabilise and develop after financial problems.

Under a decision signed on August 13, the PM appointed Deputy PM Nguyen Sinh Hung as head of the committee, Deputy PM Hoang Trung Hai as the deputy, and Minister of Transport Ho Nghia Dung as a standing member of the committee.

The committee is comprised of 14 other members, who are representatives from relevant ministries, branches and sectors. It will study, propose and facilitate implementation of policies and remedies for Vinashin to ensure it develops efficiently and sustainably.

As of June 2010, Vinashin faced debts totalling VND86 trillion due to a sudden drop in the global shipbuilding and maritime market and Vinashin leadership’s weaknesses and wrongdoings.

The group’s leadership made numerous decisions contrary to laws, inaccurately reporting the use of capital for investment, the establishment of new companies, business lines and production performance, and even made wrong decisions relating to the use of investment capital.

At a recent press briefing on Vinashin’s situation, Deputy Prime Minister Hung said the Government will work to halt the group’s losses by 2012 and help it develop in a stable manner by 2015. – VOV

Tags: Vietnam shipping industry, Vinashin restructure