return icon Vietnamnet.vn

Vinalines restructuring gets a further boost

 VietNamNet Bridge – Strong measures are being proposed to put struggling Vinalines, once a leading player in the shipping business, back afloat.

VietNamNet Bridge – Strong measures are being proposed to put struggling Vinalines, once a leading player in the shipping business, back afloat.



{keywords}

 

 

 

In a recent document sent to the prime minister, the Ministry of Transport (MoT) sought government approval for state-run Vinalines to scale down its holdings in the key ports of Haiphong, Quang Ninh, Danang and Saigon from a current 75 per cent to 51 per cent.

Similarly, Vinalines’ holdings in other ports including Can Tho, Nghe Tinh and Cam Ranh was proposed to be reduced from a current 75 per cent to 49 per cent, and the firm’s holding in Khuyen Luong and Nam Can ports would fall from 50-65 per cent to below 50 per cent.

The MoT also asked for Vinalines to entirely exit Nha Trang Port JSC.

Earlier, Vinalines claimed that the initial public offering (IPO) for its four major ports in Haiphong, Quang Ninh, Nha Trang and Danang had generated modest income, as only 5 per cent of the available shares were sold, a fifth of the target.

Vinalines’ general director Le Anh Son attributed the poor IPO result to overly high state capital stakes in the firms, which had discouraged investors.

Son expected that the shares in port businesses retained by Vinalines would become more appealing to investors if the MoT proposal to lower state ownership in these ports was approved.

“Our firm expects to garner VND2 trillion ($96 million) to feed financial restructuring and at the same time bolster the management efficiency of these ports,” said Son.

In parallel to lowering state ownership in port businesses, the MoT also proposed taking stronger action to deal with Vinalines’ underperforming member units.

The MoT has proposed Ca Mau Shipbuilding Industry Limited go bankrupt, increasing the number of Vinalines’ members to go bust in the upcoming time to three, including Vinashinlines, Falcon and Ca Mau Shipbuilding Industry Limited.

Three other members were proposed to be dismantled instead of divested from. They were Ben Dinh-Sao Mai Port Development JSC, Vinalines training college and ship repair firm Vinalines-Dong Do Limited.

Loss-making Northern Shipping and Dong Do Marine will be downsized in terms of state ownership following a Vinalines proposal, with the state stake in these firms falling from above 50 per cent to less than half.

According to Son, the three issues of foremost importance to Vinalines at present were market expansion, equitising the Vinalines parent company and debt rescheduling.

In terms of debts, the company reportedly received approval from several creditors to convert its debts into creditor capital holdings in the company, a move that would offer the firm a new way out of its current problems.

 

VIR/VNN

MORE NEWS

Former State President Nguyen Xuan Phuc explains his resignation

Former President Nguyen Xuan Phuc decided to resign and retire as he was fully aware of his responsibilities before the Party and the people when a number of officials under him committed violations during his stint as prime minister in 2016-2021.

Vietnam remains third largest seafood supplier to RoK

The nation remained the third largest seafood supplier to the Republic of Korea (RoK) last year with the country’s seafood market share as part of the RoK’s total imports reaching 10.2%, according to statistics released by the Korea Customs Service.

Airline agencies asked to tighten control over smuggling by air

The Civil Aviation Administration of Vietnam (CAAV) has asked agencies under its wing to strengthen inspection and supervision to promptly detect and handle smuggling by air.

Vietnamese FM meets Cambodian, Philippine, Malaysian counterparts

Foreign Minister Bui Thanh Son met with his Cambodian, Philippine and Malaysian counterparts on February 3 on the sidelines of the 32nd ASEAN Coordinating Council Meeting (ACC-32) in Jakarta, Indonesia.

Vietnam to help Timor Leste soon become official member of ASEAN: FM

Vietnam will work with other ASEAN member states to discuss, agree on processes, procedures and necessary measures to support Timor Leste to become an official member of the group soon, Foreign Minister Bui Thanh Son said.

Vietnamese circus artists Quoc Co, Quoc Nghiep set new world record

Circus artists Giang Quoc Co and Giang Quoc Nghiep on February 3 (Vietnam time) set a new head-to-head balancing walk plus blindfold record in Milan, Italy.

HCM City faces shortage of teachers at all levels

The Ho Chi Minh City People’s Committee has held a press conference to provide information about socioeconomic issues and epidemic prevention and control in the city.

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.
back_to_top