Team effort to aid troubled Vinashin

A Vinashin ship repair facility in the northeastern province of Quang Ninh. The troubled shipbuilding group will receive support from the State Capital Investment Corporation and Debt and Asset Trading Corporation. — VNA/VNS Photo Huy Hung

>> Vinashin to lay off 14,000 workers

Vinashin's restructuring plan was approved in 2010, after Government inspectors uncovered the group's financial malpractices. At the end of 2009, the group was more than VND86.7 trillion (US$4.1 billion) in debt.

In a meeting between Minister of Transport Dinh La Thang and Minister of Finance Dinh Tien Dung on Wednesday, representatives of the two sides listed Vinashin enterprises that would be transferred to SCIC and DATC.

A representative from Vinashin reported that the group had supplied files and documents of 30 enterprises to SCIC. However, SCIC said it is only considering taking over six.

According to a draft regulation prepared recently by the Ministry of Finance, the SCIC's charter capital will likely be increased eight fold to VND40 trillion ($1.81 billion), but the corporation will be dissolved if it loses money for a long time or fails to meet tasks assigned by the State.

Vinashin and DATC have agreed that DATC will buy Vinashin's debts and sell them to credit institutions and other debt owners.

"DATC has been working with more than 50 of the 234 Vinashin units on the list for restructuring," said a DATC representative.

However, acting General Director of Vinashin Vu Anh Tuan said the number of units transferred to SCIC and DATC was not as high as expected because there were still many difficulties.

At the meeting, the two sides discussed several issues related to Vinashin's restructuring process.

These included issuing bonds for Vinashin and dealing with the tax balance sheet and other sums paid to the State budget when dissolving or merging enterprises.

"This work must be carried out as quickly as possible, though we must ensure commitments with foreign credit institutions and follow the Government's guidelines," said finance minister Dung.

In another meeting with representatives of commercial banks on the same day, transport minister Thang asked banks to work with Vinashin in selling and buying businesses and funding effective projects to restructure and recover the group.

Thang highly praised Ocean Bank, Maritime Bank and Petrovietnam Finance Joint Stock Corporation for their recent support for the transport sector, especially in restructuring Vinashin.