Sinking Ship Builder Restructures

According to a July 9 report from Thanh Nien News, loss-making shipbuilding giant Vinashin has admitted its massive expansion efforts over the past few years had been overconfident and had led to restructuring it is now undergoing. The government said that the shipbuilder’s debts totaled more than $4.2b. As a result, it has to be restructured so that it can focus only on its core business, the government said. Projects that are not necessary to the company’s development will be transferred to other state-owned enterprises, like Vietnam Oil and Gas Group (PetroVietnam) and Vietnam National Shipping Lines (Vinalines).

(Source: Thanh Nien News)