New corporation takes charge of Vinashin Group

Vinashin will be replaced by SBIC which is expected to push up Viet Nam’s shipbuilding industry in the future.

HA NOI (Biz Hub) — The Ministry of Transport announced the establishment of the Shipbuilding Industry Corporation (SBIC) today.

The corporation will take charge of restructuring of the Vietnam Shipbuilding Industry Group (Vinashin) and its members.

Vinashin’s restructuring plan was approved in 2010 after Government inspectors uncovered financial malpractices. At the end of 2009, the group was more than VND86.7 trillion (US$4.1 billion) in debt.

The ministry said the wholly State-owned SBIC would operate as a parent company for the group.

The corporation will focus on building and repairing ships, and recycling and breaking up old vessels. It will also develop ports, harbours, waterworks and shipbuilding factories. It  will be state-owned with eight subsidiaries and registered capital of approx $451 million, the Ministry said. The eight subsidiaries include:

1. Pha Rung Shipyard

2. Bach Dang Shipyard

3. Ha Long Shipyard

4. Thinh Long Shipyard

5. Cam Ranh Shipyard

6. SSIC Shipyard

7. Saigon Shipmarin Shipyard

8. Song Cam Shipyard

The SBIC will be responsible for the continuing rights, legal obligations and interests of Vinashin. It plans to equitise or merge 69 units, and sell or close the remaining 165. — VNS