Vietnam gov't approves Vinashin restructuring plan

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Prime Minister Nguyen Tan Dung on Thursday approved a plan to restructure state-owned shipbuilder Vinashin that will retain focus on its core businesses.

The Vietnamese government said on its website that the 2011-2013 plan envisions stable development of the group so that it can repay its debts and generate profits.

According to the plan, Vinashin will focus on three main fields shipbuilding and repair; supporting industries; and training.

The government has also ordered the group to make full use of its assets and divest from non-core business activities.

The plan was formulated and approved after Vinashin was driven to the edge of bankruptcy.

As of June this year, the company had accumulated debts totaling VND86 trillion (US$4.4 billion), leading to an investigation and the initiation of a large-scale restructuring effort.

National legislators have criticized the government for its responsibility in the Vinashin mismanagement scandal.

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