Gov’t gives nod to Vinashin loans

Workers of Pha Rung shipbuilding company, a member of Vinashin, construct a 34,000 tonne vessel to export to England. Vinashin has been granted permission to issue corporate bonds worth US$182 million to expand its core business. — VNA/VNS Photo Thuy Quynh

HA NOI — Deputy Prime Minister Nguyen Sinh Hung on Wednesday allowed the Viet Nam Ship-building Industry Group (Vinashin) to access financial resources totalling more than US$1.18 billion to realise its key projects.

Of the funds, Vinashin will be permitted to issue corporate bonds worth VND3 trillion ($182 million) and get commercial loans from local banks for VND10 trillion ($606 million), according to the Government website.

In addition, it will be permitted by the Government to access foreign commercial loans valued at $400 million.

The financial resources will be used to implement ship-making contracts for overseas partners, deals with the Viet Nam National Oil and Gas Group; projects for the Dung Quat ship-making factory in the central province of Quang Ngai; and other infrastructure construction works.

According to the website, Hung asked the Vinashin management board to scrutinise all important projects, build up specific routes for each project to find out appropriate commercial loans and then work with each bank for financing.

According to the deputy prime minister’s requirement, the Viet Nam Development Bank (VDB) and commercial banks will take responsibility for carrying out commitments with Vinashin, specially warranting essential financial resources for its contracts.

Particularly, the Bank for Investment and Development of Viet Nam will bankroll some VND2.7 trillion, the Viet Nam Bank for Industry and Trade funds VND2 trillion, around VND3 trillion from VDB, VND2 trillion from the Bank for Agriculture and Rural Development and other financial institutions will handle the remaining VND300 billion.

Over the past decade of operation, Vinashin raised its ownership capital from VND100 billion to approximately VND6 trillion.

It is slated that next month the Ministry of Finance (MoF) will co-ordinate with Vinashin to appraise and make the official announcement of its charter capital basing on audited financial reports.

Hung also requested that the MoF co-operate with the Steering Committee for Enterprise Renovation and Development, and other relevant State bodies to valuate its assets; classify its ownership capital and State-owned capital, suggest solutions for adjusting and supplementing charter capital and then report to the Government for approval.

Additionally, he asked the MoF to issue guiding documents to evaluate its trademark as a visible asset for contribution to joint ventures.

Vinashin plans to notch up a revenue of VND24.9 trillion in the second half of this year, from ship-making, construction, transportation, trade and services. —