Vinalines’ losses catch State Inspectorate’s eyes

Vinalines - illustration photo

>> Vinashin gets loans to cover payroll

>> Vinashin pulling down banks

>> Vinashin takes measures to pay off massive debts

>> Vinashin to restructure before it can repay corporate bonds

Dan Tri reported that the State Inspectorate had just decided to inspect Vinalines’ capital and asset usage and management following its first ever loss in 16 years of operation when the latter reported losses of VND660 billion ($31.88 million) in 2011’s first half.

Inspections will run 75 days from September 7 and cover Vinalines’ long-term investments from January 1, 2007 to December 31, 2010.

Of Vinalines’ VND660 billion ($31.88 million) losses in 2011’s first half, VND507 billion ($24.5 million) came from Vinalines’ member units while five businesses the group took over from embattled Vinashin, another state group, following Vinashin’s restructuring scheme suffered VND153 billion ($7.4 million) in losses.

Vinalines’ general director Nguyen Canh Viet attributed the losses to plummeting transport fares during the last three years.

Viet said current tough business conditions had pushed shipping firms to the wall.

After a slight rebound in 2010, the shipping market deeply plunged in the first six months of 2011. Besides, pirates in South Africa, the Aden Gulf and Malacca Strait had all adversely impacted on shipping activities and Vinalines’ shipping fleet, according to Viet.

Reality shows that when Vinalines’ maritime and port services firms reported upbeat business figures in the first six months of 2011, its shipping firms all claimed losses.

As of late June 2011, Vinalines injected VND3.460 trillion ($167.1 million) into 53 businesses, of which VND1.556 trillion ($75.16 million) pumped into shipping firms, VND885 billion ($42.7 million) poured into seaport logistics firms and around VND370 billion ($17.87 million) went to diverse fields of securities, insurance and property.