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Political Bureau urges restructuring of Vinashin

In Uncategorized on August 9, 2010 at 3:20 pm

Political Bureau urges restructuring of Vinashin

QĐND – Monday, August 09, 2010, 21:37 (GMT+7)

The Political Bureau of the Communist Party of Vietnam Central Committee has decided to set up a steering committee in charge of assisting the country’s largest shipbuilder Vinashin to settle its operation and financial problems as soon as possible.

This was part of the Political Bureau’s conclusion on Vinashin on July 31 after hearing the Party Delegation of the Government reporting the group’s situation and opinions from the Party Central Committee Office, the Party Central Committee’s Inspection Commission, the National Assembly’s Economics Committee, the Ministry of Public Security and other central ministries and agencies.

The Steering Committee consisting of representatives of relevant ministries, sectors, branches of the Government and a number of Party units, is headed by Nguyen Sinh Hung, a Politburo member and Permanent Deputy Prime Minister.

It is tasked to work out policies and measures to help Vinashin develop its business line after getting stabilised.

In the conclusion, the Political Bureau recognised the wide-ranging and fast developments Vinashin has made since its foundation in 1996.

It cited the group’s important infrastructural facilities that enabled the ship building industry to grow at an annual average growth rate of 35-40 percent during 1996-2006 and its contingent of 70,000 experts and technicians capable of building various types of ships for economic, defence, security purposes and for export.

However, Vinashin is currently facing a lot of difficulties and due to management, weaknesses and some serious wrongdoings, the Political Bureau said.

It referred to the group’s reckless expansion and scattering investment, financial problems that made it end up on the brink of bankruptcy and come to a standstill in business and its investment projects, as well as its internal troubles that caused 17,000 of its workforce to leave the group.

The Political Bureau pointed out objective and subjective reasons behind the Vinashin case, underscoring subjective causes as the main ones.

It said direct responsibility in the case must be held by the group’s Management Board and its leadership, including the Chairman of the Management Board while laying stress on the lack of responsibilities among number of concerned State management agencies at the central and grassroots levels.

To remedy Vinashin’s weaknesses and fix its wrongdoings, the Political Bureau assigned the Party Delegation of the Government to take the lead in instructing such works as follows:

– Promoting what Vinashin has achieved in the past years, continuing to affirm the mechanical engineering industry as the major sector in the national strategy on industrialisation and modernisation and the ship building and repairing industry as the spearhead sector for the development of maritime economy and the country’s sea strategy through 2020 and the following years.

– Quickly restructuring Vinashin to stabilize its production and business and step by step strengthening its trademark to prevent it from going bankruptcy and collapsing as it will have adverse effects on the ship building industry’s development confidence rate and international debt payment as well as the country’s investment environment. 

– Urgently re-evaluating the performance of Vinashin’s parent company, its affiliates, integrated companies and invested projects in an accurate, objective, and honest manner to take specific and appropriate rearrangements.

In dealing with Vinashin’s debts and its increase of charter capital, especially those relating to the State budget, the Political Bureau asked the Government to work out feasible measures in line with Vietnam’s laws and international rules.

It asked the Government to ensure the harmony of interests of concerned parties and not to cause difficulties for other groups, corporations as well as credit organisations.

Besides, the Political Bureau requested that other economic groups and corporations are examined, inspected and evaluated accurately and their financial situation and production and business performance are disclosed publicly and transparently. 

It also urged the Government to promptly keep a close watch on these groups and corporations when they expand their investment into other fields out of their main business line.

Source: VOV

Source: QDND

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