Vinashin looks for safe port to berth

The ministry (MoT) has recently proposed next steps for restructuring Vinashin. Accordingly, Vinashin will only retain effective shipbuilding companies and potential ship repair firms. These companies will be switched into joint stock companies, in which the parent company will be wholly state owned business taking charge of managing state investment into member companies and affiliates.

“Vinashin has proposed the prime minister allow it to keep the parent company, 12 shipbuilding enterprises and the Shipbuilding Science and Technology Institute,” said Nguyen Ngoc Su, Vinashin’s chairman.

It also means that Vinashin will have to continue divesting from at least 30 other member enterprises. Plus, the proposal can be done only when the group cuts down on 216 associated businesses as proposed in the restructuring plan first step.

Analysts said this will be a very tough mission, particularly under current context of economic vulnerabilities. Meanwhile, the outcome of the selling assets in three businesses, offering for sale 13 enterprises and the transferring capital at 32 joint stock companies Vinashin promised to solve after the second quarter this year is not yet available at this time.  

The black cloud of the shipbuilding industry is still acting a brake on seeking new contracts for Vinashin in 2013 and years ahead. It is reported that some ship owners have offered contracts to Vinashin, but at pretty low rates for acceptance.

“It takes at least three years for the sea transport market to recover completely on the back of current sinking demand. Shipbuilding industry will recover more slowly than transport industry,” said Nguyen Van Cong, vice minister of the MoT. With the technologies and the productivity available, retaining seven or eight shipbuilding factories was still difficult, he added.

The restructuring plan came on the heels of the proposal to transfer management of the “big four” Vietnam Airlines, Vinalines, Vietnam Railways and Vinashin to the MoT which has been submitted to the prime minister for approval.

It is unclear whether Vinashin will retain its business group status or not. Dinh La Thang, Minister of the MoT, said the proposal was important to improving the role and responsibility of the ministry towards businesses under its management.

According to the MoT’s report, Vinashin’s total revenue up to September, 2012 was estimated at $71.4 million, achieving 15.8 per cent of this year’s plan and dropping 71 per cent compared 2011 corresponding period. This result stemmed from the delivery of 8 ships and barges worth $55 million in which 3 ships were sold for only $10.6 million.