The Vietnam Shipbuilding Industry Corporation (Vinashin) is expecting to have its business organisation and financial investments restructured for stability.
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| Vinashin Group is expecting to be restructured. |
According to the Decision No. 926/QĐ-TTg issued by the Prime Minister, businesses and unfinished projects relating to industries that are not associated with the main business line of Vinashin (shipbuilding and support industries such as sea transport and construction of ports and industrial areas) and companies under the management of Vinashin Group that do not have necessary conditions to continue its operation, will now be transferred to other enterprises that are more suitable and capable of managing these businesses, invest in them and utilise them more effectively. This move will enable Vinashin to pay off its huge debt and add more capitals to its current shipbuilding projects.
Previously, on June 21, the Ministry of Transport and Government Office held a meeting with the Vinashin Group setting out to deploy the decision mentioned above. Vinashin is required to continue normal operations at its other establishments, while promptly transferring the ones appointed by the Prime Minister to other enterprises in accordance with the decision.
Vietnam Shipbuilding Industry Corporation, founded in 1996 with a capital of over VND 100 billion (USD 5.2 million), has developed into a powerful economic group in mechanical engineering (shipbuilding industry). However, in mid-2008, Vinashin fell into a fiscal crisis which has significantly impacted the group's business activities and financial position.
With a goal of improving the mechanical engineering industry and shipbuilding in particular, the Prime Minister's decision aims to maintain and develop the industry of building and repairing ships; utilising projects that have been invested in and are now being invested in more effectively; and preventing negative impacts on activities of credit institutions.
Related ministries and industries were also directed to work in coordination with the Vinashin Group to restructure it in terms of finance and business plans of the group; resolving manageable problems or report proposed solutions for problems that require evaluation from higher authorities; completing the goal strategy for the shipbuilding industry's development; maintaining business and production activities; and last but not least, ensuring employees job security.
