Debt-ridden Vinashin cuts 14,000 jobs

The loss-making shipbuilder Vinashin has laid off nearly 14,000 employees during its restructuring plan to escape from collapse, its executives told reporters on Wednesday.

As of the end of July, Vinashin had 26,242 employees, more than 8,000 of which had nothing to do as the shipbuilding industry remains frozen, while the company is still struggling to find capital to maintain production.

As of the end of July, Vinashin had 26,242 employees, more than 8,000 of which had nothing to do as the shipbuilding industry remains frozen, while the company is still struggling to find capital to maintain production.

Vinashin thus decided to keep only 8,000 employees.

In a separate development, the Social Insurance Agency of Khanh Hoa has reported that many Vinashin subsidiaries operating in the province have failed to pay social insurance for their employees.

Le Hung Chinh, deputy director of the agency, said on Wednesday that the total unsettled insurance debt is more than VND9 billion.

Specifically, the Cam Ranh Shipbuilding Co Ltd owes VND3.6 billion worth of insurance debt, while the respective figures of the Nha Trang Shipbuilding Co Ltd and Nha Trang Shipbuilding Industry Co are VND2 billion and VND306 million.

Most of these companies have failed to pay insurance for 20 to 45 months, while their debts have become increasingly larger due to overrun expenses from late payments.

On a larger scale, as many as 902 businesses operating in Khanh Hoa currently have a combined unpaid social insurance debt of VND52 billion.

The insurance agency said it is taking 47 of these debtors to court.

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