Top officials of Vinashin violated regulations and sent inaccurate reports regarding their operations for years, the government reported.
A report submitted by the Vietnamese government on September 19, handed to the National Assembly, blamed Vinashin’s infringements on for the shipbuilder’s downhill.
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| Bad performance of Vinashin hidden for a long time |
Top officials at Vinashin (Vietnam Shipbuilding Industry Group) were proven to have sent inaccurate reports on the group’s operations. In 2009, Vinashin had losses of VND1.6 trillion (USD 80 million), yet they reported a VND750-billion (USD 32.5 million) profit. The same situation occurred in the first quarter of this year with an announcement of VND100 billion (USD 5 million) profit while incurring further losses.
Meanwhile, the shipbuilder carried out massive investments, even projects, all using loans. It also had to pay the interest of many projects, which were still under construction. Additionally, Vinashin provided loans for associated businesses, while it incurred a huge debt.
By late June of this year, the group’s total debt was estimated to be VND86 trillion (USD4.41 billion).
The government admitted that it held some responsibility for the situation of the nearly-bankrupt shipbuilder in regards to state management. Concerned ministries and agencies did not accurately dissect Vinashin’s false reports.
The government also affirmed to restructure Vinashin to prevent negative impacts on the national shipbuilding industry as well as the investment environment. The newly- reorganised shipbuilder will focus on three main areas of shipbuilding and repair, supporting industry development and training shipbuilding human resources.
According to the government, Vinashin will continue incurring losses this year and is expected to earn profits only after 2015.
Three months after being restructured, Vinashin has produced five ships. It plans to hand over an additional 35 ships from now to the year-end and launch a 104,000-tonne oil tanker in January 2011.
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