Vinashin to lay off 14,000 workers

According to the state-owned shipbuilding company Vinashin’s plan to restructure and revamp, the company intends to keep only a workforce of 8,000 workers and lays off nearly 14,000 others.

The launch of a ship built by Vinashin.

By July 31, the workforce at Vinashin comprised of 26,242 people and Vinashin plans to gradually ease the number by first laying-off 30 percent of redundant workers.

In past months, the company had formed groups to carry out the company’s restructuring work, and four units are expected to complete the task of restructuring by end of September, increasing the number of units that have finished the process of restructuring to 50.

Vinashin is also struggling to withdraw capital contribution by brands from 105 units.

On September 16, the Ministry of Transport held a meeting with Vinashin on implementation of changes in the company restructuring process.

Transport Minister Dinh La Thang ordered Vinashin to settle all workers dues before terminating work contracts. The Ministry will help Vinashin to coordinate with local authorities and ease any red tape to speed up the restructuring process.

Vinashin reported that in the first eight months of the year, production exceeded VND4 trillion, accounting for 112.11 percent of that in the same period last year, and 65.26 percent of this year’s plan. Eight-month revenue was more than VND2.7 trillion, accounting for 106.56 percent of that in the same period last year, and 39.67 percent of this year’s plan.

By late August, the company handed over 20 of the 69 vessels to the ship owners. By end of September, Vinashin plans to establish the Vietnam Shipbuilding Industry Corporation–as a foundation for rebuilding a sustainable shipbuilding industry in Vietnam.