Vietnam National Shipping Lines (Vinalines) will dissolve two subsidiaries, let two others go bankrupt and sell out its shares in 37 companies by 2015 under its restructuring plan approved by Deputy Prime Minister Vu Van Ninh on February 4.
According to a Government decision approving the plan, Vinalines will focus on three main sectors, namely sea transport, port operation and shipping services.
The two subsidiaries to be dissolved under the restructuring plan are Vinalines’ branch in Can Tho City and Southeast Asian Maritime Human Resources Center (Vina-STC). Meanwhile, Vinashin Ocean Shipping Company Limited (Vinashinlines) and Vietnam Petrol Shipping Joint Stock Company (Falcon) will file for bankruptcy.
Vinalines will divest its capital from 37 companies by 2015 and merge Petrol Marine Trading Company and Vinalines Petrol Company together.
As per the restructuring plan, Vinalines is wholly State owned and will be equitized in 2015.
In the period from 2012 to 2015, Vinalines will hold 100% ownership in only two companies, 75% in nine others, and 50-65% in many member units.
Financial restructuring will focus on settling the debts owed to Vietnam Development Bank and other credit institutions by way of interest rate freeze, reduction and exemption.
Vinalines will have to complete loan applications for debt restructuring in the second project under the program of State-owned enterprise reform and corporate governance support with US$100 million financed by the Asian Development Bank.
During the restructuring process, Vinalines will have to lay off staff, especially indirect laborers, ensuring that 70% of the remaining work force is trained, with 20% of them having professional qualifications.
In the seaport sector, Vinalines will concentrate on the existing ports, particularly the Cai Mep-Thi Vai port complex and the ports in Haiphong, Quang Ninh and HCMC. The firm will stop the Van Phong Port project.
In the shipping sector, Vinalines is asked to sell old ships to cut losses, restructure its fleet to meet the needs of the market and focus on the domestic market to raise its share to 25-30%.
As for shipbuilding, Vinalines will only carry out the projects meeting its financial capability and the market demand. In the short term, it will have to stop building six ships, reschedule the construction of 11 ships and try to promptly finish seven ships and put them into operation under the shipbuilding programs signed with Vinashin.
Furthermore, Vinalines will promote shipping services with an aim of introducing complete service packages, targeting overseas markets. It will develop a number of inland ports and cargo distribution centers in the transport hubs.
The Saigon Times Daily