>> Vinashin set to build 20 ships for Vinalines

>> Vinashin takes measures to pay off massive debts

>> Prime Minister approves restructuring plan for troubled Vinashin

>> NA deputies urge accountability for Vinashin’s problems

The case of troubled Vinashin once again topped the agenda at the NA with intense questioning for Minister of Finance, Vu Van Ninh.

Finance Minister Vu Van Ninh

NA deputies questioned Minister Ninh about his responsibility in managing capital and he assured that Vinashin’s capital was not a dead loss.

Vinashin has to make itself responsible for capital mobilisation

The questions were mainly focused on Vinashin’s debt and massive non-core investments. Minister Ninh explained that Vinashin had an initial registered capital of VND100 billion (USD5 million) when it was set up. In 2006, it was turned into a corporation and then was developed into a group with a total registered capital of VND2.174 trillion (USD108.7 million).

Operating mainly in the shipbuilding industry, Vinashin made limited net profits during its operation. When detecting problems of Vinashin, the prime minister set up an interdisciplinary task force to restructure Vinashin, aiming to rearrange the firm’s operations and add capital for its activities.

Regarding Vinashin’s total assets, Ninh said they reached VND104 trillion (USD5.2 billion) as of June 20, 2009, including a VND86 trillion debt (USD4.3 billion). The debt includes the shipbuilder’s investments for underway projects and 110 plants, with 28 among those being operated well. Vinashin violated the state management regulations when it bought old ships without the prime minister’s permission. “Vinashin hasn\'t lost all of its capital, but the exact value of loss needs a comprehensive evaluation. We have asked agencies to audit the value of Vinashin’s current assets to define the real loss.”

Answering questions of deputies on the Finance Minister’s responsibility for violations of Vinashin, Ninh said, “Under the Law on State Enterprises from 2003, state-owned enterprises are allowed to mobilise capital by bond issuance and have to take responsibility for their mobilisation. The Ministry of Finance is responsible for supervising the group\'s financial activities, but does not decide what it invests in.”

Ministry informed the government of Vinashin’s violations

Minister Ninh also noted, “We found wrongdoings of Vinashin in massive non-core business and its ineffective capital use and requested the shipbuilder to tackle the situation. We also informed the government of the group’s old ship purchase and sales.” In June 2009, the PM asked Vinashin to cut down its non-core investments.

In July 2009, Vinashin faced difficulties partially due to the world economic downturn. The PM requested Vinashin reduce its projects from 104 to 40 and then allowed it to invest in only two companies and eight projects. In 2010, the PM decided to restructure Vinashin, permitting it to transfer a number of projects to PetroVietnam and Vinalines.