Prime Minister Nguyen Tan Dung has approved the restructuring plan of the Vietnam National Shipping Lines (Vinalines) which includes withdrawing capital from various non-core areas.
Vinalines to focus on marine shipping, seaport operations and marine services
Under the restructuring plan, by 2015 the corporation will focus on its three main areas of marine shipping, seaport operations and marine services.
In terms of seaport operations, Vinalines must concentrate on operating current ports with priority given to Haiphong and Quang Ninh in the north and Cai Mep - Thi Vai and HCM City in the south.
The corporation was asked to reduce their expenditures and increase the efficiency of port operations.
The PM also requested that Vinalines halt the implementation of the Van Phong international depot project in order attract more domestic and foreign investment.
In addition, Vinalines must restructure its shipping fleet, make plans to sell off old and inefficient ships to cut losses and focus on domestic market. The corporation set a target to help increase the entire country's share in the shipping market for imports and exports by 25%-30%.
Vinalines will scrutinise their plans to build new vessels, taking into account their financial capacity and market demand.
Six new ships that were planned for construction will be halted, the schedule for building 11 other ships will be extended, while those already under contract for construction will be accelerated.
Vinalines will boost its development of shipping support services, especially in the field logistics, with an aim to provide package services and expand the operations of its support services to foreign markets. There are also plans to establish clusters of inland ports around the country.
The corporation will be allowed to transform shipbuilding industry companies into firms that focus on marine support services and privatise them when possible.
After restructuring Vinalines will become a holdings company.
Vinalines must withdraw its stakes in 37 other companies operating in various fields by 2015.
The company's branch in Can Tho City and Vina-STC, a joint venture between Vinalines and STC Group will be closed. It will have to file for bankruptcy for Vinashin Ocean Shipping Co., Ltd (Vinashinlines) and Falcon Shipping Joint Stock Company.
Last year, Vinalines incurred losses of VND2.439 trilion (USD111.9 million). This year, it is expected to continue to this trend, with losses of around VCND2.1 trillion (USD100.6 million).