Enterprises and projects transferred from Vinashin suit PVN

Enterprises and projects that have been transferred from the Vietnam Shipbuilding Industry Group (Vinashin) fairly suit the objectives to develop support industries for oil and gas sector of PVN. That is the opinion of Vu Quang Nam, deputy director general of Vietnam Oil and Gas Group (PVN) while talking to reporters of chinhphu.vn about the transference of six enterprises and projects from Vinashin under Decision No.
926/QĐ-TTg of the prime minister on comprehensive restructuring of Vinashin.

Talking about the progress of the transference, Nam said under Decision No. 926/QĐ-TTg of the prime minister on restructuring Vinashin, PVN takes charge of Vinashin’s six companies and projects, including:-

(1) Lai Vu Shipbuilding Complex in Hai Duong province (including Lai Vu Shipbuilding Industry Company);

(2) Nghi Son Shipbuilding Industrial Zone in Thanh Hoa province (including the Project Management Board);

(3) Nhon Trach Specialised Shipbuilding and Equipment Manufacturing Plant in Dong Nai province;

(4) Dung Quat Shipyard in Quang Ngai province

(5) Soai Rap Shipbuilding Industrial Zone in Tien Giang province;

(6) Vinashin’s share in the Hoang Anh Shipbuilding Joint Stock Company (in Nam Dinh province) and other Vinashin investments
Nevertheless, since Vinashin did not contribute capital in Hoang Anh Shipbuilding Joint Stock Company (Nam Dinh), only made contribution by its brand name, PVN has reported to the government and been approved to not receive the contribution of Vinashin in this company (Notification No. 298/TB – VPCP dated November 9, 2010).

Thus, in fact, PVN takes charge of only five enterprises and projects. On October 21, 2010, PVN and Vinashin have signed record statement on the transference of the above enterprises and projects.

Nam said the projects transferred from Vinashin are consistent with the objectives to develop support industries of PVN.

For example, the Dung Quat Shipyard of Vinashin, the largest shipyard in Vietnam, agreed to build for PVN two 100,000 dwt crude oil tankers, but it has made no progress in three years.

They have only completed part of the volume of those works. PVN is now taking charge of this shipyard, thus it could accelerate the construction schedule to ensure the demand for crude oil tankers for Dung Quat Oil Refinery.

In addition, PVN also has members such as PetroVietnam Technical Services Corporation (PTSC), PV Shipyard operating in oilrig building and repairing. These members have recently succeeded in building two 3000-4000 HP service vessels and seting up 90-metre water-depth drilling jack-up rig, etc.

Therefore, the transference of Dung Quat Shipyard and Nhon Trach Specialised Shipbuilding and Equipment Manufacturing Plant is suitable to increase resources for the field of building oil tankers and other types of floating facilities for oil and gas sector, and gradually meet the needs of the markets outside oil and gas industry in the country as well as in abroad.

The reception and integration of those enterprises and projects into PVN took place relatively conveniently, did not affect the business results of PVN. Furthermore, that also contributes to accelerate the construction progress of unfinished products of PVN such as oil tankers at Dung Quat Shipyard.

Regarding PVN’s plan to restructure those enterprises to match the overall development orientation of the group, Nam said after the reception, PVN has assigned some of its members to directly manage and conduct appropriate business, production and investment plans in line with functions and duties of those transferred units.

Currently, PVN has assigned PetroVietnam Construction Joint Stock Corporation (PVC) to directly manage Soai Rap Shipbuilding Industrial Zone (Tien Giang). PVC has completed procedures to convert the purpose of use and function of the zone to oil and gas service industrial zone, and to deploy a number of projects in the zone such as straight welded steel pipe manufacturing plant and major petroleum storage.

PTSC takes charge of the Nghi Son Shipbuilding Industrial Zone in Thanh Hoa province and Nhon Trach Specialised Shipbuilding and Equipment Manufacturing Plant in Dong Nai province. For Nhon Trach Specialised Shipbuilding and Equipment Manufacturing Plant, PTSC and other shareholders have established PTSC Shipyard, which has charter capital of 300 billion dong to build and repair the service fleets operating in the fields of PTSC, Vietsovpetro corporation (VSP) and other ship owners.

Regarding Nghi Son Shipbuilding Industrial Zone, PTSC has merged with two existing ports no.1 and no.2 to form a large-scale dedicated and integrated port, meeting the demand for delivering and receiving equipments and goods of the Nghi Son Petrochemical Refinery construction project in Nghi Son Economic Zone (Thanh Hoa province) as well as of the North Central region.

Lai Vu Shipbuilding Complex (Hai Duong) has been assigned for Ocean Bank to continue investing and constructing into a complete industrial zone.

PVN decided to restructure the Dung Quat shipbuilding industry company (DQS). Accordingly, some member companies have been transferred the status quo to PVN’s members that are operating in similar areas, such as PetroVietnam Transportation Corporation (PV Trans), PetroVietnam general Services Joint Stock Corporation (Petrosetco), PVC, etc. In addition, PVN directs DQS to focus on shipbuilding, not to run other business lines, in order to fully use the resources to meet the demand for building and repairing oil tankers, drilling rigs, barges, etc. for the units in the industry and serve the needs of domestic and foreign markets.

Predicting the effectiveness of the production and business activities under new operating mechanism, Nam said, PVN takes charge of four shipbuilding industrial zones and Dung Quat shipyard. The projects on shipbuilding industrial zones are all in the beginning stage, the completed works are not much, so PVN would have advantages when converting the purpose of use and functions of those zones to be in line with its strategic objectives to ensure effective business.

Particularly for Dung Quat shipyard, since Vinashin had at the same time carried out investment and deployed shipbuilding of oil tankers, and due to lack of investment capital the efficiency was low. After taking charge and restructuring, PVN has provided guidance in the portfolio classification and ranking to give priority to urgent works in the first phase, such as completed piers, dry dock no.1, assembling yards, etc. to meet the requirements for completion of unfinished vessels.

In addition, PVN has issued resolution assigning DQS to provide repair services for ships, floating facilities, drilling rigs for the units in the industry in order to maximise the capacity of existing technical facilities and skilled workers of the plant, then help DQS to gradually overcome the difficulties.

Finalising the discussion, Nam confirmed that PVN takes charge of those enterprises and projects not merely because of being assigned by the government but PVN has also actively worked with top management of Vinashin to discuss the plan to support one another in production and business, and requested Vinashin to cede some of the projects which Vinashin had been investing such as Nghi Son in Thanh Hoa, Soai Rap in Tien Giang, Nhon Trach in Dong Nai, etc. but due to some reasons, Vinashin has not agreed.

Therefore, it is now very convenient for PVN when the government decided to transfer those projects to PVN. – Chinhphu

Tags: Vinashin