VietNamNet Bridge – The losses of the Vietnam Shipping Lines Group (Vinalines) in the first half of 2012 is more than VND1.4 trillion ($70 million), 3.5 times higher than the total losses in 2011, according to a report of the Ministry of Transport.

Half of the losses came from businesses that were transferred from the Vietnam Shipbuilding Industry Group (Vinashin).

A Vinalines report shows that this group earned over VND11.6 trillion of revenue in the first half of 2012, equivalent to 97 percent of the same period of 2011. However, its total cargo transported by Vinalines – its main-core business – was only 15.3 million tons, equivalent to 85 percent of the corresponding period of 2011.

Vinalines also reports VND1.439 trillion of losses in the same period, compared to VND434 billion of the entire 2011. The total losses of the two businesses that were handed overed from Vinashin – Vinashin Shipping Transport Company and Bien Dong Shipping Transport are up to VND700 billion. Two among Vinalines’ leading firms – Falcon and Vosco, also incurred losses of VND267 and VND103 billion.

Vinalines said that it caused losses because of the downgrade of the shipping market and the fall of shipping fees in a long time. The maritime transport sector has to face over-supply in almost markets.

In addition, Vinalines had to deal with inner difficulties, which has affected its business.

Compiled by Le Ha