Prime Minister Nguyen Tan Dung on August 13 signed Decision 1470/QD-TTg to establish a steering committee for restructuring the country’s largest ship builder, Vinashin, to help it rapidly stabilize and develop after financial problems.
Minister of Transport and Communications Ho Nghia Dung was appointed as a standing member of the committee, which also consists of 14 other members, who are representatives from relevant ministries, branches and sectors.
The committee’s task is to study and propose policies and remedies for Vinashin, as well as organize and deploy the implementation of these policies and measures to enable it to stabilize and develop its business.
The committee also gives instructions to the mass media in disseminating information on Vinashin’s situation and the Government’s plans and measures to handle the case in an objective, accurate and prompt manner.
It is composed of two working groups and a coordinating section.
Working group No. 1 is in charge of organizational restructuring, development strategy, and orientations of investment, production and business lines for Vinashin.
Working group No. 2 is responsible for reshaping Vinashin’s financial structure to ensure that it is guaranteed with capital sources to cover debts, production, business and investment activities.
As at June 2010, Vinashin faced debts totaling 86 trillion VND, while its total assets were worth VND104 trillion , due to a sudden drop in the needs of the shipbuilding and maritime market in the world following the global financial crisis, and Vinashin leadership’s weaknesses and wrongdoings.
The group’s leadership made numerous decisions contrary to laws, inaccurately reporting the use of capital for investment, the establishment of new companies, business lines and production performance, and even made wrong decisions relating to the use of investment capital.
At a recent press briefing on Vinashin’s situation, Deputy Prime Minister Hung said the Government will work to halt the group’s losses by 2012 and help it develop in a stable manner by 2015.