The Government has just passed a resolution to approve the Plan to implement the policy of handling the Shipbuilding Industry Corporation (SBIC).

According to this plan, the parent company SBIC and 7 subsidiaries (Shipbuilding LLCs: Ha Long, Pha Rung, Bach Dang, Thinh Long, Cam Ranh; Saigon Shipbuilding Industry LLC; Saigon Shipbuilding and Maritime Industry LLC) are required to urgently review and complete documents and procedures according to legal regulations to submit a request to open bankruptcy proceedings.

Expected implementation time from Q1/2024.

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The Vinashin case left many consequences decades later.

Regarding Song Cam Shipbuilding Joint Stock Company, the Government requests the recovery of the capital contribution of the parent company - SBIC, Bach Dang Shipbuilding One Member LLC at Song Cam Shipbuilding Joint Stock Company during the bankruptcy process of the parent company - SBIC, Bach Dang Shipbuilding One Member LLC according to the procedures of the Bankruptcy Law, legal regulations on the transfer of state capital and other relevant legal regulations.

The implementation time will be based on the approved handling plan, in line with the bankruptcy roadmap of SBIC parent company and Bach Dang Shipbuilding One Member Co., Ltd., expected to be implemented from the second quarter of 2024.

For enterprises under the former Vinashin structure that were not retained in the SBIC structure but have not completed the restructuring process, the Government requires the parties to continue handling to recover assets.

The Government's plan requires agencies and units to closely coordinate with the National Assembly, the Supreme People's Court, and the Supreme People's Procuracy to strive to completely handle SBIC.

"Maximum recovery of capital and assets, minimum use of state budget, in case state budget must be used, comply with legal regulations; minimize loss of money and assets of the State, related organizations and individuals as well as the shipbuilding and repair industry", the Government requested.

The plan requires research to apply appropriate mechanisms and policies within the authority of the Government and Ministries; propose to the National Assembly, the Supreme People's Court , the Supreme People's Procuracy to supplement and promptly issue instructions, mechanisms, policies, and amend legal regulations within their authority to handle difficulties and problems arising in the bankruptcy process of the Parent Company - SBIC, 7 Subsidiaries and recover capital, assets, and property rights of the Parent Company - SBIC, 7 Subsidiaries at Song Cam Shipbuilding Joint Stock Company and at the remaining enterprises in accordance with the provisions of law.

"Pay attention to and ensure the legitimate and legal rights of workers, avoid negative ideological impacts, causing complaints and destabilizing politics and social order and safety," the Government requested.

On August 30, 2012, the appeal trial of the case of "intentionally violating State regulations on economic management causing serious consequences" occurring at the Vietnam Shipbuilding Industry Group (Vinashin) ended.

The Supreme People's Court declared the 8 defendants guilty of "Intentionally violating State regulations causing serious consequences", according to Clause 3, Article 165 of the Penal Code. Specifically:

Defendant Pham Thanh Binh, former Chairman of the Board of Directors (BOD) and General Director of Vinashin Group, was sentenced to 20 years in prison.

Defendant Tran Van Liem, former Head of the Group's Control Board, former Director of Vien Duong Company, 19 years in prison.

Defendant To Nghiem, former Chairman of the Board of Directors of Cai Lan Shipbuilding Industry One Member Co., Ltd. (MTV), General Director of Hai Ha Economic Zone Development Investment Joint Stock Company, was sentenced to 18 years in prison.

Defendant Nguyen Van Tuyen, former Director of Hoang Anh Vinashin IT Joint Stock Company, 16 years in prison.

Defendant Trinh Thi Hau, former Chief Financial Officer of Vinashin Information Technology One Member Co., Ltd. (VFC) was sentenced to 14 years in prison.

Defendant Hoang Gia Hiep, former Deputy General Director of VFC Company, Director of IT Financial Leasing Company, 13 years in prison.

Defendant Tran Quang Vu, former General Director of Vinashin Group, former General Director of Nam Trieu IT Company, 11 years in prison.

Defendant Do Dinh Con, former chief accountant, Deputy General Director of Hoang Anh Vinashin IT Joint Stock Company, 10 years in prison.

Regarding civil liability, the panel of judges held that the appraisal procedure was conducted in accordance with the law, the damage appraisal was objective, the compensation calculation was in accordance with regulations, there was no basis to believe that the calculation was disadvantageous to the defendants, nor was there any basis to reduce the compensation penalty. The defendants were required to reimburse the amounts related to their violations in each case. Accordingly, the defendants Pham Thanh Binh and Tran Van Liem were required to jointly compensate Vien Duong Transport Company Limited - Vinashin, each defendant more than 495 billion VND. The defendants Pham Thanh Binh, Nguyen Van Tuyen and Do Dinh Con were required to jointly compensate Hoang Anh IT Joint Stock Company nearly 35 billion VND: of which, Binh and Tuyen each had to compensate nearly 14 billion VND; the defendant Con nearly 7 billion VND. Pham Thanh Binh and To Nghiem also had to compensate Cai Lan IT Company Limited more than 16.8 billion VND each. Defendants Binh and Nghiem must also compensate Cai Lan-Vinashin Thermal Power Company more than 16.4 billion VND. Defendant Tran Quang Vu must compensate Nam Trieu IT Corporation more than 25 billion VND (Vu has compensated 1 billion VND).

In addition to the prison sentence and civil compensation, the Court of Appeal also banned the defendants from holding positions in state agencies and economic organizations for a period of 5 years from the date of completion of the prison sentence.

In June 2019, the Hanoi People's Court again tried and sentenced the defendants in the case of abuse of power and position to appropriate property that occurred at the Vietnam Shipbuilding Industry Group (Vinashin).

The People's Court sentenced defendant Nguyen Ngoc Su (former Chairman of Vinashin's Board of Directors) to 13 years in prison; Tran Duc Chinh (former Chief Accountant and Head of Vinashin's Finance Department): 17 years in prison; Truong Van Tuyen (former General Director of Vinashin): 7 years in prison; Pham Thanh Son (former Deputy General Director of Vinashin): 6 years in prison.

Prohibit defendants Chinh and Son from holding management positions for 3 years from the date of completion of the sentence.

Desolate scene inside the billion-dollar steel rolling mill from the Vinashin era Once considered the leading steel supplier for Vietnam's shipbuilding industry, the Cai Lan Hot Rolling Mill built during the Vinashin era is now deserted and severely degraded.