Vietnam: Government Announces Restructuring of Vinashin
In an effort to reorganise the debt-laden national shipbuilder Vietnam Shipbuilding Industry Group (Vinashin), the Ministry of Transport has announced the birth of a new corporation, the Shipbuilding Industry Corp. (SBIC).
Vinashin, together with its subsidiaries, will be restructured into SBIC. The company will be state-owned with eight subsidiaries and registered capital of approx $451 million, the Ministry said. The eight subsidiaries include: Pha Rung Shipbuilding Company; Bach Dang Shipyard, Ha Long Shipyard; Thinh Long Shipyard; Cam Ranh Shipyard; Sai Gon Shipbuilding and Marinetime Industry Company; Song Cam Shipbuilding JSC.
As VietnamNet reports, Vinashin will end operations from the day SBIC is granted with the business registration certificate. Once being established, SBIC will assume the legal rights and obligations and legitimate interests of the parent company – Vinashin.
But first, and under the order of Vietnamese Govt, Vinashin will have to restructure its 234 units. Among those, 165 companies will be sold and liquidated or placed into bankruptcy, according to the Ministry of Transport.
SBT Staff, November 1, 2013