New corporation replaces Vinashin Group

The Ministry of Transport on October 31 announced the establishment of the Shipbuilding Industry Corporation (SBIC) in a bid to reorganise the Vietnam Shipbuilding Industry Group (Vinashin) and its members.

The wholly State-owned SBIC, with a registered capital of VND9.52 trillion (US$452 million), will operate with a parent company and its eight subsidiaries.

The corporation will focus on building new ships, repair services, port and wharf operations, supporting industries for the shipbuilding, and recycling or breaking up old ones.

The corporation will be responsible for the rights, obligations and legal benefits of Vinashin. It must accelerate the restructuring of the 234 units and affiliates of Vinashin through different measures such as merge and capital transfer. Among those, 165 companies will be sold and liquidated, according to the Ministry of Transport.

Vinashin’s restructuring plan was approved in 2010 after Government inspectors uncovered its financial problem. The group had a debt of more than VND86.7 trillion ($4.1 billion) at the end of 2009.

Source: VNA

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