Orien-Hanel, a producer of television cathode ray tubes, is filing for bankruptcy following unsuccessful rescue efforts, bringing to a close a famous chapter in Ha Noi’s economic history.
Nguyen Huu Tuong, deputy chairman of the Ha Noi People’s Committee, said December 22 that city authorities have concurred with the joint venture’s management on initiating bankruptcy procedures.
The committee is the managing body of Ha Noi Electronics Company (Hanel), the Vietnamese partner in the joint venture.
Orion-Hanel, in which South Korea’s Orion is the other partner, was established in 1993 with a capital of US$178 million, with the Vietnamese side holding 30 percent. It made picture tubes and other components for TVs and computers.
In October 2004 the joint venture opened a second factory in Sai Dong B industrial zone, but it was not as successful as initially hoped.
Meanwhile, the traditional CRT television was being replaced by LCD and Plasma TVs, worsening Orion-Hanel’s difficulties.
The company had to stop production for three months in September 2007 before resuming with just one production line.
Within three months, in April 2008, it laid off workers indefinitely.