Government says will launch a new Vinashin soon

The Vietnamese government will unveil a new Vietnam Shipbuilding Industry Group (Vinashin) this month or in early November after a restructuring period so that the group can maintain its leading role in the domestic shipbuilding industry, said Deputy Prime Minister Nguyen Sinh Hung.

Hung made the announcement last Friday on the sidelines of the National Assembly group discussion on 2010 socioeconomic target implementation and 2011 outlook over the weekend.

The new Vinashin will focus on its core operations, which are shipbuilding and repairing, support industries for shipbuilding, and training a skilled workforce in this field.

Private and foreign businesses are encouraged to join the group’s shipbuilding processes, and Vinashin should be able to build ships for the Ministry of National Defense as well.

To lift the sinking group out of the hot water of debts, the government is working with Vinashin’s creditors to reschedule or reduce bad debts.

The government will also review its workforce, dissolve ailing subsidiaries and recover key businesses of the giant shipbuilder to ensure employment for laborers, and develop the domestic shipbuilding industry and the national marine economic strategy.

Hung, also head of the steering committee for the restructuring of Vinashin Group, said the government would continue to replace senior executives in the group by qualified persons and apply new governance.

“The schemes will help Vinashin maintain shipbuilding contracts signed earlier and resume operation of its factories. Besides, we should keep and develop Vinashin’s engineering factories as it has a strong advantage for the sector,” Hung said.

The government has transferred Vinashin’s ships to the Vietnam National Shipping Lines (Vinalines) and the Vietnam National Oil and Gas Group (PetroVietnam) to serve maritime and oil transport.

The transfer helped Vinashin recover operations and maintain jobs for workers.

Concerning the government’s solutions to Vinashin’s bad debts, Hung stressed that the group itself would have to restart its business and make profits to pay debts.

The government will transfer or equitise the group’s certain affiliates and projects to recoup capital.

The deputy prime minister said that Vietnam as a coastal nation will attach importance to the shipbuilding industry in its long-term development strategy.

“Shipping demand in the world will recover after economic recession and that will facilitate Vinashin’s business in the future,” he said. – Dantri

Tags: Vietnam Shipbuilding industry, Vinashin