Vietnam shipper Vinalines posts huge H1 loss

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Security guards stand inside Vinalines' floating dock No 83M which is anchored at a port in the southern province of Dong Nai

Troubled shipper Vinalines posted losses of VND1.44 trillion (US$69.1 million) in the first half of this year, blaming the downturn in the sea transport industry for its poor performance.

Revenues fell 3 percent from the same period of last year to VND11.6 trillion, news website VnExpress reported, citing data from the state-owned company.

According to Vinalines, the shipping market has seen falling prices for a long time due to an oversupply of service providers. Two of its major earners, Falcon and Vosco, posted losses of VND267 billion and VND103 billion in the January-June period.  

Five loss-making subsidiaries from shipbuilder Vinashin were transferred to Vinalines last year. Two of them, Vinashinlines and Bisco, fetched the company a total loss of VND700 billion in the first six months.

Vinalines said the company is also dealing with internal problems, which has affected its performance.

Senior officials of the companies are being investigated while an international warrant has been issued for former chairman Duong Chi Dung.

The shipper, fully known as Vietnam National Shipping Lines, lost VND434 billion ($21 million) in 2011 because of lax corporate management, according to the government. That means the first-half loss figure of this year is already more than triple the full-year figure of 2011.

Vinalines itself never announced any annual loss in the past three years.

It posted a loss of VND660 billion ($31.7 million) in the first half of 2011, the highest ever in its 15 years of operation at that point. But only six months later, the company reported a full-year profit of VND62.15 billion.

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