Vietnam’s Vinashin sells 4 ships worth $110 million

Vietnam Shipbuilding Industry Group sold four newly-built ships worth almost $110 million, as the government tries to restructure and stabilize the state-owned company that almost went bankrupt due to losses.

The shipbuilder, also known as Vinashin, is trying to complete ongoing ship-building projects, according to a statement on the government’s website Friday.

Vietnamese leaders requested the company to focus on finishing projects after orders valued at about $700 million this year faced a threat of cancellation, according to a statement on Aug. 4.

Projects that were transferred to Vietnam Oil & Gas Group, or PetroVietnam, have been restarted, according to today’s statement. More than 1,000 workers have returned to work at Dung Quat Shipbuilding Factory, out of a total 6,000 that left. The company expects to finish a 104,000-ton oil tanker by October, the statement said.

Vinashin didn’t have enough funds for some projects after the global recession hit its customers and lenders, the Ministry of Transportation said on July 1. The group’s total debt was VND86 trillion ($4.5 billion), while total assets were VND104 trillion as of June, according to an Aug. 4 statement.

Ships that have been transferred to Vietnam National Shipping Lines, or Vinalines, have also resumed operations, according to today’s statement.Bloomberg

Tags: Vietnam shipping industry, Vinashin restructure