Companies disassociate from “Vinashin” name

As the Vietnam Shipbuilding Industry Group (Vinashin) is now on the verge of bankruptcy, and a series of Vinashin’s key persons have been arrested, the brand “Vinashin” has become “mud”.

In early 2008, Tan Quang Minh Investment and Tourism Development Joint Stock Company, the developer of the culture-sport-ecological tourism complex in Hai Phong City, changed its name into Quang Minh-Vinashin Investment and Tourism Development Joint Stock Company.

Vinashin became a shareholder of the company and contributed 20 percent of Quang Minh-Vinashin’s chartered capital.

Prior to that, in Hai Phong City, some other companies also accepted Vinashin as a shareholder when Vinashin made capital contributions, including Shinec Information Technology Joint Stock Company, Cuu Long-Vinashin Steel Corporation, Duyen Hai-Vinashin Construction Company.

At that time, many companies wanted to have “Vinashin” in their names, because Vinashin was once a big brand that helped them more easily access bank loans and made them more valuable.

Now the situation is reversed. Since Vinashin has been discovered as bogged down in debt, these companies want to remove “Vinashin” from their names.

At a recent meeting with the Hai Phong City’s People’s Committee, representatives from joint-stock companies complained that banks have refused loans to companies related to Vinashin.

According to Duong Ngoc Tuan, Deputy Director of the Hai Phong City Planning and Investment Department, it is not easy to remove the “Vinashin” name. The removal can only be implemented when both sides agree, while joint-stock companies cannot do this unilaterally.

Tuan went on to say that elimination of Vinashin’s capital contribution cannot be implemented, because under the Enterprise Law, companies do not have the right to cut down the volumes of capital contributed by founding shareholders.

Therefore, the Planning and Investment Department has asked the Hai Phong City’s People’s Committee to ask for opinions from the Ministry of Finance and Steering Committee on Enterprise Renovation and Development.

According to Tuan, firms should discuss the name change with Vinashin. If Vinashin agrees, the names will be changed, but Vinashin will still be a shareholder.

Nguyen Van Thanh, Chair of Hai Phong City’s People’s Committee, observed that involved parties agreed on Vinashin’s capital contribution, so no one will be able to eliminate the capital contribution if involved parties do not agree.- Phap luat TP HCM

Tags: Vietnam Shipbuilding industry, Vinashin