Vinashin signs contracts for building 16 new ships in 2011

On January 6, deputy prime minister Hoang Trung Hai chaired the meeting between the Steering Committee for restructuring Vietnam Shipbuilding Industry (Vinashin) and representative of Vinashin on the implementation of Decision 926, 2108/2010/QĐ-TTg of the prime minister.

Focus on building and repairing ships

In 2010, with strong steps of restructuring, the group has completed a series of delayed contracts, handed over 64 ships ships with total contract value of $577 million, actively implemented localisation strategy, and carried out investment projects for support industries such as Cai Lan steel mill project, Mitsubishi diesel engine factory, ship cable factory, and welding material factory, etc.

In the plan for 2011, the group has valid contracts with 87 ships worth $1.387 billion; contracts for building 16 new ships have recently been signed with value of $377 million.

In addition, Vinashin will further promote ship-repairing contracts as this is a favourable market and the efficiency is generally higher than shipbuilding.

The group will focus on investing into the remaining items of the facilities for support industries, improving product quality to meet the requirements of building ships for export, supplementing equipments and enhance the capacity of the shipyards.

The group will drastically improve management through regular inspection and monitoring. Separate monitoring and accounting will be carried out for each product, and warnings will be given to products with high costs, and risk of loss to have timely adjustment, avoiding continuous loss.

Regarding the implementation of restructuring policy of the government, to date, Vinashin has completed the transference of units and projects to Vietnam Oil and Gas Corporation, and some units to Vietnam Maritime Corporation. In 2011, the group plans to complete the restructuring of 117 units and complete overall restructuring by 2013.

Ensure efficiency, quality and progress

Closing the meeting, the deputy prime minister specified three criteria that need to be ensured in all production and business plans, as well as in restructuring process in 2011 of Vinashin, including efficiency, quality and progress.

Acknowledging the positive changes of Vinashin, the deputy prime minister also requested thorough assessment on the weaknesses to more drastically overcome those.

Especially, clearer division of responsibilities from leaders to each employee in the upcoming operation activities as well as in management and accounting model for each project and contract is needed.

The deputy prime minister stressed that Vinashin needs to specify the responsibilities and interests of each shipyard and production team.

He also gave specific comments to solve some problems and difficulties of Vinashin such as issues on capital, infrastructure, brand capital as well as the general and specific mechanism. – Chinhphu

Tags: Vinashin