Shipbuilding giant Vinashin to undergo restructuring

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State-owned shipbuilder Vinashin will be re-structured so that it can focus only on its core business, the government said in a statement Thursday.

According to the statement, since the mid-2008 economic downturn, Vinashin has faced numerous financial difficulties. Many customers have canceled shipbuilding contracts or delayed payments.

The government now wants the company to focus on its core business and transfer other ongoing projects in sea transport and port construction to Vietnam Oil and Gas Group (PetroVietnam) and Vietnam National Shipping Lines (Vinalines).

Vinashin was established in 1996 with charter capital of VND100 billion. The company has made great strides over the years, turning Vietnam into one of the strongest shipbuilders in the world, the statement said.

After the reform major shipbuilding companies will still belong to the group, Vinashin General Director Tran Quang Vu said in a report published by Tuoi Tre newspaper Friday.

"Vinashin will be responsible for paying all foreign debts," he said, noting that the company will be "drastic" in withdrawing from non-core business fields.

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