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Vinalines to embark on overhaul

Update: February, 07/2013 - 00:00

A corner of a Vinalines' shipbuilding plant. The corporation will review shipbuilding projects in accordance with its financial capacity and market demand. — VNA/VNS Photo Huy Hung

HA NOI (VNS) — Viet Nam National Shipping Lines (Vinalines) will focus on three core business areas of maritime transportation, seaports and services, as part of its restructuring plan recently approved by the Prime Minister.

Under the plan, Vinalines will have to restructure its fleet and sell outdated ships to offset losses, while concentrating on exploiting the domestic maritime transport market to raise its shipment share to 25-30 per cent.

The corporation will review shipbuilding projects in accordance with its financial capacity and market demand, as well as developing full-package services especially in the logistics sector.

Besides making better use of its seaports, particularly those in Hai Phong, Quang Ninh, Ba Ria-Vung Tau and HCM City, the plan requires Vinalines to halt construction of the Van Phong international seaport project and seek domestic and foreign investors to continue funding for the project.

Furthermore, Vinalines will be required to hold certain amounts of charter capital in its 36 affiliates while divesting capital from its non-core businesses in 37 companies from now to 2015.

As of last year, Vinalines had managed 143 ships with a total capacity of more than 3.17 million tonnes.

However, the firm suffered from fund mismanagement and its top officials had violated Government instructions and investment laws, cusing heavy economic loses and eroding the public's trust, precipitating the restructure. — VNS

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