Vinashin Should Transfer More Projects to Other Firms

Vinashin Business Group should hand over a number of uncompleted projects to other firms to help ease its debt burden, said Vice Chairman and General Secretary of Vietnam Association of Mechanical Industry Dao Phan Long.

The shipbuilder needs to transfer its steel sheet project in Haiphong city to the Vietnam Steel Corporation, Long suggested, adding that the shipboard cable plant worth hundreds of USD in Danang city should be moved to Vietnam Electric Cable Corporation (Cadivi).

Many local businesses can meet Vinashin’s production demand, thus, the group should not expand to non-core areas, leading to its ineffective operations.

It is time for the government to stop ineffective projects which are the cooperation between Vinashin and other non-state enterprises in order to save the shipbuilder’s operations from the verge of bankruptcy.

Under the prime minister’s decision, Vinashin will operate as a limited company with 12 affiliates to be transferred to PetroVietnam and Vinalines.

PetroVietnam will take over Lai Vu Shipbuilding Industry Co., Nghi Son shipbuilding industrial park, Nhon Trach Specialized Shipyard, Dung Quat Shipbuilding Co., Soai Rap Shipbuilding Industry Corp and Hoang Anh Shipbuilding Industry JS Co.

Meanwhile, six others to be transferred to Vietnam National Shipping Lines (Vinalines) are Hai Ha Seaport-Industrial Zone, Vinashin Dinh Vu port, Hau Giang Shipbuilding Industry Development Co., Ltd, Nam Can Shipbuilding Company, Vinashin Ocean Shipping Company and Bien Dong Shipping Company.

Vinashin total debts have climbed up to VND80 trillion (US$4.2 billion), with half of this from local state-owned banks like BIDV and Agribank.

Tags: ,

Posted by VBN on Jul 21 2010. Filed under Shipbuilding. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

You must be logged in to post a comment Login

Stay informed everyday

Subscribe to free RSS and email updates from Vietnam Business News

Subscribe via Email Subscribe in a Reader Follow us on Twitter Connect on Facebook

RSS China Business News

  • India gold futures recovered partially on Thursday afternoon
  • Gold price stood above VND47 million a tael (1.2 ounces) on September 8
  • UBS AG hiked its gold forecast for next year by 50% to $2,075 a troy ounce
  • U.S. gold futures contract rose 1.6 percent to $1,846.6 after 3 pct drop
  • Gold price witnessed a decline of Rs 240 per sovereign on Thursday
  • Gold futures regained strength on Thursday
  • Russia’s gold and foreign exchange reserves rose to $543.4 billion
  • Gold price rebounds after overnight dips as bargain hunters step in

Sponsored

Looking for an overseas forex broker?