Vietnamese shipbuilder moves on with equitisation SBIC, formerly known as Vinashin, is bracing for large losses as it proceeds with plans to change into a joint stock company in 2015.
The Shipbuilding Industry Corporation (SBIC) is the new name of the state-owned Vietnam Shipbuilding Industry Group (Vinashin) following its restructuring. The corporation was set up last year and will be responsible for the equitisation of Vinashin next year, said the chairman of the SBIC board, Nguyen Ngoc Su. In 2014, SBIC will complete the equitisation process for four of its subsidiaries and plans to equitise five others are in place for early next year. Su said most of their member companies are incurring losses and have negative equity. In order to successfully implement the equitisation process, they have proposed that the Ministry of Finance provide enough charter capital and tax exemptions. "Our current problem is how to restructure debts for our subsidiaries when they have negative equity. SBIC is seeking permission to transfer those debts to the parent company. We can gradually erase the debts by selling shares after the equitisation. If that is not enough, we'll have to ask for the government's help," he said. Su went on to say that they would create business plans, re-organise their staff and search for potential investors. Two of the most important issues in the restructuring of Vinashin are dealing with debt and the redundant workforce. This is part of Ministry of Transport's plans to restructure state-owned enterprises. Vneconomy |
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