Government vows to bail out insolvent shipbuilder Vinashin

Permanent Deputy Prime Minister Nguyen Sinh Hung reiterated the Government’s policy to restructure insolvent State-owned shipbuilder Vinashin and to make shipbuilding a core of the national marine strategy, at a working session of the Vinashin Group Restructuring Steering Committee here on Saturday.

Hung also called for a review of Vinashin’s current projects and a restructuring of its subsidiary companies as the first step in the reconstruction process.

“A new Vinashin should focus on shipbuilding and maintenance, developing supporting industries and training a skilled workforce in shipbuilding in order to meet market demands at home and abroad,” said Hung.

The steering committee would work with creditors to determine the best solutions for Vinashin’s current financial shortfall, he said, vowing that the Government would meet Vinashin’s capital needs after recalculating the basic needs of its affiliates.

“The group’s capital structure will be restructured to include both State capital and private investments,” Hung said.

The steering committee met just one day after the Government moved to establish it, aimed at quickly helping the shipbuilding giant recover massive debts of about VND86 trillion (nearly US$48 billion).

Hung was named to chair the committee, while another deputy prime minister, Hoang Trung Hai, was named as vice chair, demonstrating the Government’s determination to restructure the shipbuilder and the nation’s shipbuilding industry.

Leaders of the city of Hai Phong and Quang Ninh Province attended the meeting and received promises of assistance for Vinashin subsidiaries in their localities, including the Ha Long shipyard, Cai Lan Steelmaking Limited Liability Co, and the Bach Dang Shipping Industry Corporation, the leaders of which were also present at Saturday’s session. — VNS

Tags: Vietnam shipping industry, Vinashin restructure