Shipbuilding Industry Corporation Explained

Shipbuilding Industry Corporation
Native Name:Vietnamese: Tổng Công ty Công nghiệp tàu thủy
Former Name:Vinashin
Type:State-owned enterprise
Industry:Shipbuilding, Defence
Predecessor:Vietnam Shipbuilding Industry Group
Defunct:First quarter of 2024 (projected)
Hq Location City:Badinh, Hanoi
Hq Location Country:Vietnam
Area Served:Worldwide
Key People:Nguyen Ngoc Su (Chairman)
Cao Thanh Dong (CEO)
Products:Warships, Fishing vessels, Merchant vessels, Platform supply vessels, Dredgers
Owner:Government of Vietnam
Homepage:sbic.com.vn

Shipbuilding Industry Corporation (SBIC) is a state-owned shipbuilding holding group in Vietnam, which offers a wide variety of new building choice from merchant vessel to platform supply vessel to other custom made-to-order ships. It was established based on restructured Vietnam Shipbuilding Industry Group.

History

Shipbuilding Industry Corporation's predecessor Vietnam Shipbuilding Industry Group (Vinashin) was a state-owned shipbuilding firm in Vietnam. It was one of Vietnam's leading industrial concerns, and entered into a partnership with Damen,[1] Kongsberg, and Hyundai.[2] Vinashin was heavily indebted,[3] and executives have been arrested for mismanagement,[4] but it has been claimed that further restructuring would allow debts to be repaid within a year.[5] Vinashin folded under a debt burden of $4.5 billion in 2010;[6] as of March 2011, it was being restructured.[7]

Ports

Vinashin operated several ports and shipyards around Vietnam.

In August 2010, Damen Vinashin began construction on a new shipyard on a 42hectare site in Haiphong.[8]

Ships built

Vinashin constructed both merchant ships and military ships. A number of ships in the Vietnam People's Navy were built by Vinashin.[9]

Merchant ship construction included dry cargo, tankers, lash carriers, and passenger vessels.[10]

Vinashin was the largest shipbuilder in Vietnam, accounting for approximately 80% of shipbuilding capacity.[9]

Bankruptcy and disbandment

Late 2023, the Government of Vietnam, under the resolution offered by the Politburo of the Communist Party of Vietnam, decided to shut down SBIC from the first quarter of 2024 by actively making SBIC and its 7 subsidiaries bankrupt. Only one subsidiary - which had an effective business and also an important joint venture with Damen - would be left surviving and to be renationalized.[11]

External links

Notes and References

  1. Web site: Damen. 2010-09-11.
  2. Web site: Vinashin: A rising giant - Kongsberg Gruppen. 2010-09-11.
  3. Web site: Vinashin boss was suspended at behest of investigative agency - Politics - VietNamNet. 2010-09-13. 2010-09-01.
  4. Web site: More Officials of Indebted Shipbuilder Arrested - WSJ.com . 2010-09-13 . 2010-09-13 . dead . https://web.archive.org/web/20100908074448/http://online.wsj.com/article/SB10001424052748704282504575470862890948230.html?mod=googlenews_wsj . September 8, 2010 .
  5. Web site: www.fairplay.co.uk - Vinashin see debt repayment in one year. 2010-12-21.
  6. News: Vietnam's Communist Party congress faces economic test. Nga. Pham. Hanoi. BBC News. 2011-01-11. 2011-01-13.
  7. Web site: No penalty for Hanoi ship scandal officials: govt. 2011-03-27.
  8. Web site: Damen Builds New Shipyard in Vietnam. 2010-09-11.
  9. Web site: VINASHIN. 2010-09-11. 2009-07-02.
  10. Web site: vinashin. 2010-09-11.
  11. Web site: Ngọc An . 2023-12-23 . Chính thức phá sản công ty mẹ SBIC và 7 công ty con từ quý 1-2024 . Officially bankrupting the parent company SBIC and its 7 subsidiaries from 1Q2024 . 2023-12-24 . . vi.