Vietnam giant shipbuilder strives for restructure

The Vietnam Business Group (Vinashin) has sold five ships worth $75 million and plans to sell additional three and five others totaling $160 million by end-2010 in a move to restructure, Chairman of the Government Office Nguyen Xuan Phuc said.

Phuc announced the information at the cabinet monthly meeting in Hanoi September 30, the government said on its website.

Currently, up to 70,000 workers at the Vietnam’s shipbuilding giant resume their works, he added.

Earlier, Vinashin poured VND400 billion ($20.51 million) into helping its units and affiliates stabilize their operations. It also mobilized the VND400-billion amount from loans and sales of its asset under the government’s restructure plan.

Vinashin is seeking the government’s nod for $300 million from the sovereign bond fund to help it settle debt with the France-based bank Natixis.

The group has run into debts totaling VND86 trillion as of end-June, including a $600-million foreign loan without the government guarantee.

Tags: Vietnam Shipbuilding industry, Vinashin restructure