Vietnam Daily News

Vinashin asks for more loans to pay wages

Written by Dailynews.vn Wednesday, 14 December 2011 17:16

Vinashin, the country's shipbuilder, had received the Vietnamese prime minister's approval to borrow a soft loan at zero interest rate from Vietnam Development Bank (VDB) to pay employees' salaries and wages till the end of December 31, 2011. But a recent governmental document stated that this group asked for more loans to pay wages again.

Vinashin reportedly continued facing difficulties in financial sources for paying salaries and wages as well as other welfares to employees. So, the government ordered VDB to keep disbursing and supporting Vinashin in terms of wages, social insurance, health insurance, unemployment allowances. The loan has a maximum maturity of 12 months and will expire by the end of this December.

But in fact, even after receiving the funding from VDB, the salary and wage payment of many affiliates of Vinashin remained difficult. At some member companies, employees got only the minimum salary of 830,000 dong within the last 2-3 months. The sums were not paid on time and Vinashin leaders said the time to pay remaining salary debts had not been defined yet.

A report on Vinashin restructuring pursuant to prime minister's Decision 926 and 2108 showed that Vinashin transferred its 15 affiliates to PetroVietnam and Vinalines. However, the process is facing many hardships and complex procedures, especially the affiliates and projects taken over by Vinalines.

For example, at Binh Dinh Shipbuilding Industry Co, Vinalines only took over the real cash contribution of 109 billion dong from Vinashin, accounting for nearly 2.2 percent of the affiliate's charter capital. Meanwhile, Vinalines did not recognise the capital contribution in form of Vinashin brand name (which was appraised at the value equaling to 30 percent of Binh Dinh shipbuilder's charter capital). This led to the complication in defining the contribution units and caused barriers for the monitoring. Vinalines also agreed to take over two projects of building two 1,730 TEU ships of Vinashin, provided that Vinashin is able to obtain the government's permission on benefiting preferential loans from VDB.

Regarding 42 remaining affiliates, Vinashin reported receiving the restructuring plan for 14 and approval on the similar plan for other 13 units. Vinashin asked to retain two companies Chan May Port Co and Vien Dong Shipping Co.

For other 216 companies which are not retained in the group's restructuring model, Vinashin withdrew capital, liquidated and transferred ownership at 54 units due to inefficient operation, and high bank debts.

Source: www.intellasia.net/news/articles/business/111350719.shtml