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Dung Quất shipbuilding company may declare bankruptcy

Update: December, 14/2016 - 09:00
Dung Quất Shipbuilding Industry Co., Ltd (DQS) may declare bankcruptcy when having huge losses. - Photo
Viet Nam News

HÀ NỘI – Dung Quất Shipbuilding Industry Co. Ltd (DQS) may declare bankruptcy, one of the possible solutions for the company, due to the huge losses it has incurred over the past years.

This was stated in the Ministry of Industry and Trade’s report submitted to the prime minister recently.

Two other solutions are to restructure DQS to resolve its difficulties in production and business or to transfer DQS to other companies to manage. Under the ministry’s report, this transfer would be planned by Việt Nam National Oil and Gas Group (PetroVietnam), the parent company of DQS.

Bankruptcy according to existing regulations is the last choice for DQS, the ministry said.

The ministry reported that DQS was established in 2006 and was a member of Shipbuilding Industry Corporation (SBIC), formerly Vinashin. In 2010, the company was transferred under the management of PetroVietnam.

According to the financial statement as of June 30, 2010, when DQS was transferred to PetroVietnam, the former had chartered capital of VNĐ3.758 trillion and total losses of VNĐ7.44 trillion, including bank loans worth VNĐ4.8 trillion. DQS did not have the ability to pay its debts, reported.

When PetroVietnam took over management of DQS, it pumped VNĐ5.095 trillion into DQS, including chartered capital of VNĐ1.99 trillion and VNĐ3.104 trillion for paying its debts.

However, by June 30, 2016, DQS still had a total loss of VNĐ6.893 trillion, including loans at banks worth a total of VNĐ1.227 trillion.

DQS made profits in 2014 and 2015, but it was expected to incur a loss of VNĐ103.7 billion in 2016 because of the current difficulties in business.

This shipbuilding company still has three large loans pending -- a loan of VNĐ490 billion from Vinashin Finance Company (VFC), a loan of VNĐ528 billion from Việt Nam Development Bank (VDB) and a loan of VNĐ548 billion from YMC-Transtech, a contractor of DQS. - VNS

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