New shipbuilding corporation debuts, replaces Vinashin model

SBIC's debut terminates Vinashin's operations beginning January 1, 2014.

SBIC’s debut terminates Vinashin’s operations beginning January 1, 2014.

Nhan Dan – The Shipbuilding Industry Corporation (SBIC) officially made its debut on December 30 and is set to begin operations on January 1 to dismiss the economic model of the Vietnam Shipbuilding Industry Group (Vinashin).

The Ministry of Transport issued a decision dated October 21 announcing the establishment of SBIC on the basis of restructuring the heavily indebted Vinashin Group.

The new corporation, bankrolled with VND9.5 trillion (US$ 446.5 million) in registered capital, is to operate under the parent-subsidiary model, with one parent company and eight members to carry out the main business of building and repairing ships.

Under the newly released document, Nguyen Ngoc Su and Vu Anh Tuan have been elected chairman and general director of the SBIC, respectively.

According to Su, Vinashin’s debts have been restructured, with the total amount of the principal reduced from VND77 trillion to VND10 trillion, to be settled in the near future during its restructuring process.

He went on to reveal that the group has recorded VND7.9 trillion in profit during 2013, and maintained sound capital thanks to debt restructuring and interest rate reductions.

In 2014, the SBIC aims to achieve a total output value of nearly VND7.5 trillion, an increase of 120% over 2013, of which shipbuilding is predicted to enjoy a 125% growth with 78 ships handed over and output value of more than VND5.2 trillion.

The SBIC’s shipbuilding capacity now accounts for 70-75% of the national total, though the number of its member companies is down from 234 to just eight after the reorganisation, Su added.