Vinashin takes measures to pay off massive debts

November 20, 2010 | 23:18

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Vinashin hopes to pay all debts after completing its restructuring plan in 2013, said the group’s newly-appointed Chairman Nguyen Ngoc Su.

Operation of Hoa Sen Ship to be resumed this December

Vinashin’s total debts of VND86 trillion ($4.4 billion) have been reduced to VND63 trillion ($3.23 billion) after the shipbuilder transferred a number of its subsidiary companies to Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Shipping Lines (Vinalines), Su said.

According to the chairman, “After restructuring 216 affiliates, Vinashin can recover VND23 trillion ($1.17 billion), thus, its total debts will be cut to around VND40 trillion ($2.05 billion). The group will try to implement the shipbuilding plan as soon as possible to make profit to start paying its debts.

Vinashin has single-member limited liability companies which run wholly on its own capital. These firms will be equitised next year, therefore, the group will be able to settle the debts,” Su said with the confidence.

Under the Vinashin restructuring plan approved by the prime minister, localisation rate of the group’s supporting industries will reach at least 50 per cent by 2015. The group aims to reach revenues between VND50 trillion ($2.56 billion) and VND60 trillion ($3.08 billion) by 2015.

In the first ten months of this year, total production value of Vinashin was estimated to be VND12.395 trillion ($635.64 million), fulfilling 38 per cent of the full-year target. Of that figure, VND7.519 trillion ($385.58 million) came from building new ships and repair, meeting 45.8 per cent of the year plan.

As of September 30, Vinashin had 42,200 labourers. Up to 174 units of Vinashin still owed salaries totaling VND102.6 billion ($5.23 million) to their staffs. The group’s total debts to social insurance were VND134 billion ($6.87 million).

Vinashin’s two troubled ships

Chief Technical Officer of Vinashin Ngo Tung Lam said body of Bach Dang Giang Ship has been sold at VND66 billion ($3.38 million). Other equipment is now being kept at stores of Nam Trieu Shipbuilding Industry Corporation (Nasico).

Duong Chi Dung, Chairman of Vinalines, said “We have received 26 ships from Vinashin, including Hoa Sen (Lotus) Ship, which has brought us revenues of nearly VND1.5 trillion ($76.9 million). We have cooperated with foreign partners to resume operation of the ship this December.”

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