Debt-ridden Vinashin ends operation

November 01, 2013 | 10:01

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The Ministry of Transport has decided to effectively cease operations of the giant state-owned Vietnam Shipbuilding Industry Group (Vinashin), which had been laden with debt for a long time.

The ministry has set up the Shipbuilding Industry Corp (SBIC) to replace the Vietnam Shipbuilding Industry Group as a part of its efforts to speed up the restructuring of the group.

SBIC, with a registered capital of VND9.52 trillion ($452 million), will operate under a parent company and its eight subsidiaries.

The corporation will focus on shipbuilding and repair services, port and wharf operations and supporting industries for the shipbuilding sector.

SBIC will take over the rights, liabilities and legal benefits of the Vinashin. It must accelerate the restructuring of the 234 units and affiliates of Vinashin through different measures such as merge and capital transfer. Among those, 165 companies will be sold and liquidated.

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