Vinalines’ head to step down amid restructuring delays

The firm’s deputy general director Le Anh Son will likely replace Viet at the helm of the state firm.

The change is expected to wrap up this month.

The change started to take shape after a February meeting on state-owned enterprise (SOE) restructuring where Minister of Transport Dinh La Thang criticised Vinalines executives for not showing consensus on the restructuring process.

“Vinalines’ leaders were not determined to undergo the restructuring process and were not reporting obstacles from the process to the government in a timely manner,” Thang said.

Unmet restructuring targets are allegedly the primary reason behind the management shake-up.

In fact, as of mid-March this year Vinalines had only equitised two businesses (Khuyen Luong port and Quy Nhon port). It was supposed to equitise seven within last year.

A new completion date for the remaining units, including Haiphong and Quang Ninh ports and Vinalines Nha Trang Maritime Co, was set for June this year, reported Son.

According to industry experts, delays have burdened Vinalines as this year it will have to finalise its IPO of the parent company and eight other businesses, including three major seaports – Saigon, Cam Rang and Nghe Tinh.

The company has also been asked to start bankruptcy procedures for two of its subsidiaries – Vinashin Ocean Shipping Company (Vinashinlines) and Vietnam Oil and Gas Transportation Company (Falcon).

Additionally, the firm needs to divest from 37 other businesses by 2015 including Bao Minh Joint Stock Corporation, Hanoi Maritime JSC and Transportation and Trading Service JSC.

To deal with colossal debts surpassing VND54.7 trillion ($2.6 billion) of the parent company and member units, the company has come to debt rescheduling agreements for $196 million from foreign creditors and VND 43 trillion ($2.04 billion) from domestic lenders.

Accordingly, the firm will have its debts frozen and interest payment exempted from one to three years. It claimed it would need at least six years before resuming its payment obligations.

“Unrevised debts and a short grace period is the major financial burden holding Vinalines’ restructuring process back,” said a senior transport expert.