Vinashin Gets Nod for Restructuring

The Government Office announced a proposal to establish the Vietnam Shipbuilding Industry Economic Group (Vinashin Group) by restructuring the Viet Nam Shipbuilding Industry Corporation (Vinashin) had been approved. The Vinashin Group would become a multiple-owner business with the State holding a majority stake, comprised of State-owned and equitised subsidiaries, it said. Under the plan, the group would function as the financial investor for its other concerns, and control the capital holdings, technology, trademarks and markets of its subsidiary companies. The Government also issued official approval of the establishment of a holding company for the Ha Noi-based Viet Nam Shipbuilding Industry Group. The group is to maintain its board of management, a general executive manager and other general managers after the restructuring is complete. Last year Vinashin earned $481m from building cargo vessels for domestic and international clients, a 41 percent increase over 2004. Most of the contracts were signed with international shipbuilding firms using technology from the UK, Denmark and Poland. The company, which recently launched a 13,000-ton oil tanker, is to begin construction this July on the largest oil tanker ever built in Viet Nam, a 100,000-tonne vessel commissioned by the Viet Nam Oil and Gas Corporation (PetroVietnam). A recent increase in building capacity means Vinashin will be able to routinely build 80,000-ton cargo ships and 300,000-ton oil tankers by 2010, it said. As of January 2006, Vinashin had secured contracts worth a combined $2 billion, and has targeted $1 billion in revenue this year, up from last year’s $690 million. Vinashin and its 20 subsidiaries have made Viet Nam the world’s 11th-largest shipbuilder. Source: VNS