PM orders restructuring of State-owned shipping firm

HA NOI — State-owned Vinalines would restructure its operations to focus on three core businesses: maritime transportation, seaports and services, Prime Minister Nguyen Tan Dung said.

The development of maritime transportation and ship-building was critically important to the nation's socio-economic development, considering the country's coastal advantages and its sea strategy, Dung said.

He acknowledged Vinalines' progress in providing stable income to workers, contributing to the flow of domestic, import-export goods, and the development of the nation's seaport infrastructure system.

By December 2011, Vinalines managed 154 ships with a total capacity of more than 3.4 million tonnes, Dung said.

However, Vinalines had suffered from investment and fund mismanagement and its top officials had violated Government instructions and investment laws, causing heavy economic losses and eroding the public's trust.

The Government has now ordered Vinalines to equitise its seaport companies, focusing on exploiting Lach Huyen port in Hai Phong, Cai Mep-Thi Vai port complex in HCM City, finding out ways to cut down costs and maximise their potential.

The company must also restructure its fleet of ships to meet demand and improve ship operations – selling unprofitable ships to reduce losses.

Vinalines has also been ordered to withdraw funds from outside its core business.

Dung told Vinalines to conclude its restructuring plan for presentation to the Ministry of Transport and submission to the Government. — VNS