The Ministry of Transport is implementing the bankruptcy of the Shipbuilding Industry Corporation.

A representative of the Ministry of Transport confirmed the information with VTC News on the afternoon of January 10.

The Ministry of Transport said that the bankruptcy of the Shipbuilding Industry Corporation (SBIC, formerly Vinashin) in the first quarter of 2024 is inevitable, helping subsidiaries operate effectively, to eliminate responsibility for old debts.

“ In fact, some shipbuilding companies under SBIC operate very well and still make profits every year, but the money earned is not enough to pay interest and repay old loans from the Vinashin period ,” the Ministry of Transport informed.

The Ministry of Transport is carrying out the bankruptcy process of the Shipbuilding Industry Corporation (SBIC, formerly known as Vinashin). (Illustration photo: An ninh Thu do)

After bankruptcy, the proceeds from liquidating the company and assets will be used according to bankruptcy laws such as paying debts, salaries and social insurance for employees still remaining from the Vinashin period.

At the working session with the parent company - SBIC and its member companies in the first days of 2024, Deputy Minister Nguyen Xuan Sang said that the Ministry of Transport is finalizing the implementation plan to determine the roadmap and specific responsibilities of the agencies and units under the Ministry of Transport in the process of bankrupting SBIC.

“The goal of Resolution 220 is to recover maximum capital and assets; to minimize the use of the state budget. In cases where the state budget must be used, it must comply with legal regulations; to minimize the loss of money and assets of the State, related organizations and individuals as well as the shipbuilding and repair industry,” Deputy Minister Sang emphasized.

Working with SBIC member units, the Deputy Minister of Transport analyzed that SBIC's bankruptcy is essentially selling the business to a new owner. Completing the bankruptcy will open up opportunities for SBIC member shipbuilding companies to enter a new phase, seizing opportunities for development. After bankruptcy, the new business owner will not have to bear or be bound by old debts, will have more proactive conditions in production and business, ensuring more efficiency.

According to the roadmap, SBIC will soon complete its human resources, review difficulties and obstacles to coordinate with the Department of Enterprise Management - Ministry of Transport to remove them, creating maximum conditions for member companies to carry out bankruptcy procedures. During the above process, SBIC member companies must comply with legal regulations, market principles, minimize losses of money and State assets; ensure transparency, enhance the responsibility of related organizations and individuals; pay attention to ensuring the legitimate rights and interests of employees; the inspection and supervision mechanism must be strictly ensured during the implementation process...

Ha Long Shipbuilding Company - one of 7 subsidiaries of SBIC. (Photo: SBIC)

Regarding the workers, Deputy Minister Sang said that SBIC’s bankruptcy is to create conditions for businesses to revive and reorganize their operations. Therefore, regardless of who owns the business, there is still a great need for experienced managers and workers in existing units.

According to the process, member units and SBIC will file bankruptcy proceedings with the court. When the court opens the file and declares bankruptcy, the liquidation of assets, obligations, and payment priorities will be carried out according to the court's judgment. During this process, operating units with contracts will still perform normally.

The first two units to be disseminated by the Ministry of Transport regarding Resolution No. 220 are Pha Rung Shipbuilding Company Limited and Bach Dang Shipbuilding Company Limited.

According to the plan, the Ministry of Transport is continuing to organize delegations to disseminate and thoroughly understand Resolution 220 to employees of the remaining 5 bankrupt companies, including: Ha Long Shipbuilding Company Limited (Quang Ninh); Thinh Long Shipbuilding Company Limited ( Nam Dinh ); Cam Ranh Shipbuilding Company Limited (Khanh Hoa); Saigon Shipbuilding Industry Company Limited and Saigon Shipbuilding and Maritime Industry Company Limited (HCMC).

Previously, the Ministry of Transport sent a document to SBIC requesting a full review and assessment of the current situation of each enterprise; a compilation of records and documents and a development of a specific treatment plan for each enterprise. The units expected to be affected include: the parent company - SBIC; its subsidiaries (7 companies); and 147 enterprises and member units of Vinashin that have not yet completed restructuring.

The Government has issued Resolution No. 220 on handling the Shipbuilding Industry Corporation (SBIC) towards bankruptcy of the parent company - SBIC and 7 subsidiaries, which are 5 shipbuilding LLCs Ha Long, Pha Rung, Bach Dang, Thinh Long, Cam Ranh; Saigon Shipbuilding Industry LLC and Saigon Shipbuilding and Maritime Industry LLC.

At the same time, recover the capital of the parent company - SBIC at Song Cam Shipbuilding Joint Stock Company; Continue to handle the enterprises under SBIC, recover the assets and property rights of the parent company - SBIC and 7 subsidiaries at these enterprises.

The requirement is to recover maximum capital and assets, minimize the use of the State budget, in case the State budget must be used, it must be implemented in accordance with legal regulations; minimize the loss of money and assets of the State, related organizations and individuals as well as the shipbuilding and ship repair industry.

Regarding implementation time, the Resolution requires the Parent Company - SBIC and 7 subsidiaries to urgently review and complete procedural documents according to legal regulations, to submit a request to open bankruptcy proceedings in the first quarter of 2024.

In 2010, the Government Inspectorate announced the conclusion of the inspection of the Vietnam Shipbuilding Industry Group (Vinashin) and pointed out a series of violations, shortcomings, and losses. Afterwards, Vinashin restructured.

In 2013, the Shipbuilding Industry Corporation was established under the parent company - subsidiary model. In which, the parent company - SBIC is a limited liability company with 100% state-owned charter capital, operating under the Enterprise Law.

SBIC has 8 subsidiaries, including: Pha Rung Shipbuilding Company Limited; Bach Dang Shipbuilding Company Limited; Ha Long Shipbuilding Company Limited; Thinh Long Shipbuilding Company Limited; Cam Ranh Shipbuilding Company Limited; Saigon Shipbuilding and Maritime Industry Company Limited and Song Cam Shipbuilding Joint Stock Company.

In particular, Song Cam Shipbuilding Joint Stock Company operates effectively and has no bad debt, so according to Resolution 220, it is not subject to bankruptcy.

Thanh Lam

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