Vinashin instructed to report debt solution

The Government yesterday directed the State-owned shipbuilding giant Vinashin to report its existing bank credit debt and propose debt solutions.

Vinashin must deliver the report by next Monday.

Deputy Prime Minister Hoang Trung Hai instructed relevant ministries and agencies to stabilise production and operations, pay its employees and restructure personnel.

The group’s managers and member companies conduct online meetings every week to review tasks and to solve emerging problems. The group was instructed to provide social insurance to its employees.

More than 5,000 Vinashin workers, or almost 10 per cent of its workforce, lost their jobs when the company failed to pay VND234 billion (US$12 million) in salaries and social insurance in June.

Newly-appointed Vinashin General Director Nguyen Quoc Anh said that Viet Nam’s shipbuilding industry had potential. He said the group was working to overcome the hard times.

The Government Office reported that Vinashin’s total debt was VND86 trillion ($4.41 billion) at the end of last month. – VNS

Tags: Vietnam shipping industry, Vinashin debts, Vinashin restructure