Vinashin takes two years to recover

The Ministry of Transport and the government’s Office Friday held a briefing on production and business operation of the state-run shipbuilding group, Vinashin.

Tuoi Tre: Vinashin’s debts reportedly stood 76 trillion dong. The group’s debts are estimated no less than 53 trillion dong after Vinashin is restructured. Of the figure, how much Vinashin’s foreign debts accounts for? Whether the shipbuilding group has to get the government loan again to pay such foreign debt?

Nguyen Ngoc Su, Chair of Vinashin: After restructuring, the government has transferred Vinashin Group’s ships to the Vietnam National Shipping Lines (Vinalines) and the Vietnam National Oil and Gas Industries Group (PetroVietnam), the group’s debts are reduced. Under the process, Vinashin’s debts will cut down to more than 63 trillion dong from 83 trillion dong. We will restructure the group’s 216 enterprises and the price of these enterprises like land or industrial zone is estimated about more than 23 trillion dong.

Many of those projects are very potential. If the market is going well, Vinashin will sell the projects at the initial investment rate. If it is, we will have sum of 23 trillion dong from selling the projects, so the total debts were down to 40 trillion dong.

To deal with the group’s debt of 40 trillion dong, we still focus on shipbuilding to make profits until next year. Besides, we are going to equitise some subsidies to get for debt payment. Vinashin is cable of paying debts.

SaiGon Tiep Thi: Some of Vinashin’s creditors have said they sent document to Vinashin authorities to ask measure the shipbuilding group will take to pay debts but they received no reply. Vinashin is going to have a debt of $60 million, which is required to pay, the shipbuilder is able to pay? Auditing company KPMG’s report said Vinashin’s debts are 96 trillion dong, the figure right?

Nguyen Ngoc Su, Chair of Vinashin: The figure is not correct. The correct one must be the figure we submitted to the government before invited KPMG to join auditing work. Vinashin’s total debts are estimated 86 trillion dong. This is correct figure.

On December 20, Vinashin is going to a debt. We meet creditors and ask for delay of debt payments until December next month.

The creditors have agreed in principle and required Vinashin to sent letter to others for debt discussion. It is not true to say that Vinashin has yet to reply some of creditors.

Vinashin borrowed money, Vinashin has to pay debts and none could pay for Vinashin’s debt.

Tuoi Tre: Vinashin’s leaders suggested the government should provide Vinashin with more capital which is equal to its registered capital of 14 trillion dong. So the shipbuilding group is asking for 5 trillion dong right in next year?

Nguyen Ngoc Su, Chair of Vinashin: Following the government’s decision, the government has transferred Vinashin Group’s ships to the Vietnam National Shipping Lines (Vinalines) and the Vietnam National Oil and Gas Industries Group (PetroVietnam). Vinashin’s assets are transferred to these groups under book. So Vietnam National Shipping Lines (Vinalines) and the Vietnam National Oil and Gas Industries Group (PetroVietnam) have received and operated the assets.

Tuoi Tre: What’s the situation and the value of two ships: Bach Dang Giang and Hoa Sen?

Ngo Tung Lam, deputy general director of Vinashin: Concerning Bach Dang Giang Ship, we don’t talk business plan of Nam Trieu Company is legal or illegal. About the value, we maintain the Bach Dang Giang Ship’s equipment and facilities in Nam Trieu warehouse. The equipment and facilities are valued about 109 billion dong and some 66 billion dong of which are collected.

Duong Tri Dung, chair of Vietnam National Shipping Lines (Vinalines): Hoa Sen Ship is one of 26 ships Vinalines receives from Vietnam Shipbuilding Industry Group (Vinashin). Over the past months, with experience and financial capacity, Vinalines put the 26 ships into operation. Regarding Hoa Sen Ship, we have negotiations with three foreign clients, who expect to jointly exploit the ship. So far we choose one of the three foreign firms. We will hand over the ship in the next moth. In 2010, the total revenue from Vinashin’s ship fleet have reached more than 1.4 trillion dong.

Tuoi Tre: Under the government’s resolution for Vinashin’s financial wrongdoings, the government members who are related to the case are required to clarify the responsibility for the case. How’s the ministry of transport implemented the resolution?

Ho Nghia Dung, minister of Transport: the government Inspectorate continues to its inspection at Vietnam Shipbuilding Industry Group (Vinashin) to clarify the full responsibility of individual or organisation for the shipbuilding group’s wrongdoings. The Ministry of Transport and relevant officials are required to seriously criticise themselves and propose disciplinary actions.

Tien Phong: After restructuring, what’s role of the Ministry of Transport in Vietnam Shipbuilding Industry Group (Vinashin)? The ministry has any measure to manage Vinashin after series of the group’s fake financial reports are not covered?

Ho Nghia Dung, minister of Transport: The government is considering and adapting the regulations. The government also clarified the duty of the transport ministry and relevant ministries and sectors as well. The Ministry of Transport is assigned to examine planning, development strategies of Vinashin and submit the report to the government.

Vinashin group will focus on core business, which is shipbuilding and repairing, following a restructure plan approved by prime minister Nguyen Tan Dung.

The plan of restructuring the shipbuilding group, Vinashin, will be implemented from 2011 to 2013.

The government’s move is aimed at stabilising Vinashin’s business and production; and making profits to pay the shipbuilder’s debts, which were estimated no less than 100 trillion dong. When the scandal first broke, the government put the debt at 86 trillion dong only to revise it to 90 trillion dong a few days later.

Under the plan, the new shipbuilding group will focus on its core business, which are shipbuilding and repairing; supporting industries for shipbuilding; and providing training courses in the field.

Private and foreign firms are encouraged to join the group’s shipbuilding processes. The government will also review Vinashin’s workforce, dissolve ailing subsidiaries and recover core operations of the group, develop the domestic shipbuilding industry and the national marine economic strategy.

The government is now working with the shipbuilding group’s creditors to reschedule or reduce bad debts. Vinashin has more than 200 offshoots. The government will transfer or equitise the group’s certain affiliates and projects to recoup capital.

The government will continue to replace senior executives in the shipbuilding group by qualified persons and apply new governance.

The steering committee for the restructuring of Vinashin Group will support the shipbuilder to maintain shipbuilding contracts signed earlier and resume business of its plants. – Tuoitrenews

Tags: Vietnam shipping industry, Vinashin restructure