Vinashin directed where to focus its future

Prime Minister Nguyen Tan Dung has come to a decision regarding the future of ship-building giant Vinashin, limiting it to three focal points.

Prime Minister Nguyen Tan Dung has come to a decision regarding the future of ship-building giant Vinashin, limiting it to three focal points. The PM signed a directive on the implementation of Conclusion 81-KL/TW, issued by the Politburo for Vietnam Shipbuilding Industry (Vinashin) yesterday.

All future Vinashin activities must fall into one of the following categories: 1) Ship building and repairing, 2) Support industry for the building and repairing of ships 3) Providing skill-based training for Vinashin’s staff and shipbuilding workers.

The Ministry of Transportation (MOT) has been assigned to urgently re-evaluate accurately, objectively and honestly the current operational state of the mother company, its subsidiary companies, associated companies and the group’s investment projects in order to find a suitable solution for the restructuring of Vinashin. Once the solution has been found, the MOT must chair and co-ordinate with related agencies to report back to the PM in the fourth quarter of 2010.

The MOT has also been asked to build a strategy and development plan from now until 2015, orientating towards 2020 and focusing on the 3 main areas.

In addition, the MOT must work with the Ministry of Interior to consolidate the Group’s manpower in stablising its organisation and focusing on performing its duties in accordance with the law. Any changes to the Group’s Board of Directors and the Board in charge of appointing Vinashin’s new General Manager must be submitted to the PM for approval.

The MOT will be responsible for the implementation of solutions that maintain, stabilise and develop Vinashin’s business production as well as guarantee jobs and income for its employees.

The Ministry of Finance (MOF) has been assigned to direct and supervise the restructuring of Vinashin, handle its debts, evaluate its ability to pay off debts, balance the sources of debt and ensure enough funding for its business production.

The MOF is also expected to re-evaluate Vinashin’s charter capital accordingly to its assigned duties and make sure the charter capital amount be adequate in accordance with the law.

The State Bank will direct credit institutions to consider and restructure Vinashin’s debts and new loans in accordance with the law and the PM’s decision on the restructuring of the Group.

Vinashin will hold a responsibility to build and implement effectively its production, business and investment plans. The company must also perform well on its current shipbuilding contracts and important investment projects that have not been completed and prepare to sign new shipbuilding contracts for the next few years.

Vinashin has also been required to review all of the projects that it had invested in and only work within the 3 main areas mentioned above. Thus, Vinashin must find a solution to sell, transfer and equatise (converting state-owned enterprises into limited liability companies) the remaining areas in accordance with the current law as well as quickly recover the capital for use in the group’s business production and debts payment.

The Ministries of Transport; Finance; Planning and Investment; Interior; Labour, War Invalid and Social Affairs; Industry and Trade; Construction; Natural Resources and Environment; Vietnam’s State Bank and the Government Office, have all been ordered to intently review and assess the relationship with state-owned companies, and of Vinashin in particular. This includes the implementation of assigned jobs, duties and responsibilities related to state management.

They will propose complete solutions for the evaluation, inspection and supervision in the fields of investment development, mobilising and using capital. The agencies must report back to the PM in October. – Dtinews

Tags: Vietnam Shipbuilding industry, Vinashin