Vinashin is to be renamed Shipbuilding Industry Corp (SBIC), and will be a stated owned company with eight subsidiaries and a registered capital of VND9.52trn ($451m) Vietnam’s Ministry of Transport announced.
“Vinashin ceases operation from the day SBIC is granted business registration certificate,” the ministry said. The date of the transfer was not given.
Under the restructuring plan 234 subsidiary companies of Vinashin will be reduced to just eight, and the workforce reduced by 14,000.
The eight subsidiaries of SBIC will include Pha Rung Shipbuilding Company, Bach Dang Shipyard, Ha Long Shipyard; Thinh Long Shipyard, Cam Ranh Shipyard, Sai Gon Shipbuilding and Maritime Industry Company, and Song Cam Shipbuilding JSC.
Vinashin, once considered a shining success, ran up debts of $4.5bn as the group over-diversified and struggled to deliver newbuildings. Former chairman Pham Thanh Binh is now behind bars serving a 20-year sentence, while eight other senior officials were also jailed, after they were convicted of directly causing a $43m loss.
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