PetroVietnam Acquires Vinashin Yard

13 July 2010 (Last Updated July 13th, 2010 18:30)

Vietnam Oil and Gas Group (PetroVietnam) has acquired Dung Quat Shipyard and shipbuilding projects from the financially troubled Vietnam Shipbuilding Industry Group (Vinashin). Dung Quat Shipyard vice-chief Huynh Van Dieu said the process will be completed before 30 September 2010.

Vietnam Oil and Gas Group (PetroVietnam) has acquired Dung Quat Shipyard and shipbuilding projects from the financially troubled Vietnam Shipbuilding Industry Group (Vinashin).

Dung Quat Shipyard vice-chief Huynh Van Dieu said the process will be completed before 30 September 2010.

Vietnam’s Government said Vinashin and its management board must review and make clear its responsibility for the group’s VND80tn ($4.2bn) debt.

Steering Committee on Enterprises Renovation and Development vice-head Pham Viet Muon said: “After restructuring, around VND20tn ($1.05bn) of debt will be transferred to PetroVietnam and Vinalines from Vinashin.”

Vinashin’s assets are worth VND90tn ($4.7bn), but its total debt is over VND80tn ($4.2bn).