The Political Bureau of the Communist Party of Vietnam Central Committeehas decided to set up a steering committee in charge of assisting thecountry’s largest shipbuilder Vinashin stabilise its operation soonafter trapped in financial problems.
This was part of thePolitical Bureau’s conclusion on Vinashin on July 31 after hearing theParty Delegation of the Government reporting the group’s situation andopinions from the Party Central Committee Office, the Party CentralCommittee’s Inspection Commission, the National Assembly’s EconomicsCommittee, the Ministry of Public Security and other central ministriesand agencies.
The Steering Committee consisting ofrepresentatives of relevant ministries, sectors, branches of theGovernment and a number of Party units, is headed by Nguyen Sinh Hung, aPolitburo member and Permanent Deputy Prime Minister.
It is tasked to work out policies and measures to help Vinashin develop its business line after getting stabilised.
Inthe conclusion, the Political Bureau recognised wide-ranging and fastdevelopments Vinashin has made since its foundation in 1996.
Itcited important infrastructural facilities for the ship buildingindustry the group built, an annual average growth rate of 35-40 percentit posted during 1996-2006, and a contingent of 70,000 experts andtechnicians capable of building various types of ships for economic,defence, security purposes and for export.
However, Vinashin iscurrently going through huge difficulties and revealing scores ofweaknesses and serious wrongdoings, the Political Bureau said.
Itreferred to the group’s reckless expansion and scattering investment,financial problems that made it end up on the brink of bankruptcy andcome to a standstill in business and its invested projects, and internaltroubles that caused 17,000 of its workforce to leave the group.
ThePolitical Bureau pointed out objective and subjective reasons behindthe Vinashin case, underscoring subjective causes as the main ones.
Itsaid direct responsibility in the case must be held by the group’sManagement Board and its leadership, including the Chairman of theManagement Board while also mentioning to responsibilities of a numberof concerned State management agencies at the central and grassrootslevels.
To remedy Vinashin’s weaknesses and fix its wrongdoings,the Political Bureau assigned the Party Delegation of the Government totake the lead in instructing such works as follows:
+ Promotingwhat Vinashin has achieved in the past years, continuing to affirm themechanical engineering industry the major sector in the nationalstrategy on industrialisation and modernisation and the ship buildingand repairing industry as the spearhead sector for the development ofmaritime economy and the country’s sea strategy through 2020 and thefollowing years.
+ Quickly restructuring Vinashin to stabilizeits production and business and step by step strengthen its trademarkand prevent it from going to bankruptcy and collapsing as it will haveadverse impacts on the development of the ship building industry,lending confidence rate, international debt payment and the country’sinvestment environment.
+ Urgently re-evaluate theperformance of Vinashin’s parent company, its affiliates, integratedcompanies and invested projects in an accurate, objective, and honestmanner to take specific and appropriate rearrangements.
Indealing with Vinashin’s debts and its increase of charter capital,especially those relating to the State budget, the Political Bureauasked the Government to work out feasible measures in accordance withVietnam ’s laws and international rules.
The Government is alsoasked to ensure the harmony of interests of concerned parties and notto cause difficulties for other groups and corporations as well ascredit organisations.
Besides, the Political Bureau requestedthat other economic groups and corporations are examined, inspected andevaluated accurately and their financial situation and production andbusiness performance are disclosed publicly and transparently.
Italso asked the Government to promptly keep eyes on these groups andcorporations when they expand their investment to other fields out oftheir main business line./.
This was part of thePolitical Bureau’s conclusion on Vinashin on July 31 after hearing theParty Delegation of the Government reporting the group’s situation andopinions from the Party Central Committee Office, the Party CentralCommittee’s Inspection Commission, the National Assembly’s EconomicsCommittee, the Ministry of Public Security and other central ministriesand agencies.
The Steering Committee consisting ofrepresentatives of relevant ministries, sectors, branches of theGovernment and a number of Party units, is headed by Nguyen Sinh Hung, aPolitburo member and Permanent Deputy Prime Minister.
It is tasked to work out policies and measures to help Vinashin develop its business line after getting stabilised.
Inthe conclusion, the Political Bureau recognised wide-ranging and fastdevelopments Vinashin has made since its foundation in 1996.
Itcited important infrastructural facilities for the ship buildingindustry the group built, an annual average growth rate of 35-40 percentit posted during 1996-2006, and a contingent of 70,000 experts andtechnicians capable of building various types of ships for economic,defence, security purposes and for export.
However, Vinashin iscurrently going through huge difficulties and revealing scores ofweaknesses and serious wrongdoings, the Political Bureau said.
Itreferred to the group’s reckless expansion and scattering investment,financial problems that made it end up on the brink of bankruptcy andcome to a standstill in business and its invested projects, and internaltroubles that caused 17,000 of its workforce to leave the group.
ThePolitical Bureau pointed out objective and subjective reasons behindthe Vinashin case, underscoring subjective causes as the main ones.
Itsaid direct responsibility in the case must be held by the group’sManagement Board and its leadership, including the Chairman of theManagement Board while also mentioning to responsibilities of a numberof concerned State management agencies at the central and grassrootslevels.
To remedy Vinashin’s weaknesses and fix its wrongdoings,the Political Bureau assigned the Party Delegation of the Government totake the lead in instructing such works as follows:
+ Promotingwhat Vinashin has achieved in the past years, continuing to affirm themechanical engineering industry the major sector in the nationalstrategy on industrialisation and modernisation and the ship buildingand repairing industry as the spearhead sector for the development ofmaritime economy and the country’s sea strategy through 2020 and thefollowing years.
+ Quickly restructuring Vinashin to stabilizeits production and business and step by step strengthen its trademarkand prevent it from going to bankruptcy and collapsing as it will haveadverse impacts on the development of the ship building industry,lending confidence rate, international debt payment and the country’sinvestment environment.
+ Urgently re-evaluate theperformance of Vinashin’s parent company, its affiliates, integratedcompanies and invested projects in an accurate, objective, and honestmanner to take specific and appropriate rearrangements.
Indealing with Vinashin’s debts and its increase of charter capital,especially those relating to the State budget, the Political Bureauasked the Government to work out feasible measures in accordance withVietnam ’s laws and international rules.
The Government is alsoasked to ensure the harmony of interests of concerned parties and notto cause difficulties for other groups and corporations as well ascredit organisations.
Besides, the Political Bureau requestedthat other economic groups and corporations are examined, inspected andevaluated accurately and their financial situation and production andbusiness performance are disclosed publicly and transparently.
Italso asked the Government to promptly keep eyes on these groups andcorporations when they expand their investment to other fields out oftheir main business line./.
