The new-look Ha Long Shipbuilding One-member Co., Ltd, is taking shape, with its equitisation process is expected to be completed in September this year.

According to General Director Nguyen Tuan Anh, the company, which is an affiliate of the Shipbuilding Industry Corporation (SBIC), has reached a deal with the Damen Shipyards Group of the Netherlands - one of the leading European groups in manufacturing high-capacity ships.

With its effective cooperation with other shipbuilding companies in Vietnam, such as the Song Gam Company and Corporation 189, Damen wishes to become a strategic investor that holds a dominant power at Ha Long Shipbuilding.

After equitisation, the company will operate under the new model, focusing on building oil and gas service ships with high quality and added value, he said.

Damen will assist the company in management technology, equipment and warehouses in order to create high-quality products as well as ensure the safety for workers, he added.

In 2013, Ha Long Shipbuilding posted an output value of over 1.3 trillion VND (63 million USD), or 100.56 percent of the yearly plan, and a revenue of nearly 1.45 trillion VND (69 million USD), equivalent to 99.8 percent of the target.

Despite good business results, the company’s equitisation process still faces a lot of difficulties as the shipbuilding market in the world, and Vietnam in particular, is in decline. Low demand has created a shortage of orders at most SBIC shipbuilding companies.

If the equitisation is not conducted drastically and seriously, State capital may be lost, Anh warned.

As of May 2014, the company has received a contract to build four tugs for Damen Group, while the first car carrier ship will be handed over soon. It will build another four transport ships for a Venezuelan investor and is negotiating for the construction of two oil and gas service ships for another partner.

In 2014, Ha Long Shipbuilding targets an output value of over 890 billion VND, a revenue of about 1.4 trillion VND and per capita monthly income of 4.8 million VND.-VNA