Vietnam carrier Vinalines racks up $2b in debts
Vinalines, whose former chairman is wanted for economic offences, is burdened with a total debt of more than US$2 billion, according to a government report recently submitted to the Vietnam National Assembly, Cargonews Asia reports.
As of the end of last year Vinalines, or the Vietnam National Shipping Lines, had total assets worth $2.6 billion dong, and $430 million dong worth of equity, according to the report.
Short-term unsettled debt of the debt-stricken shipping line stood at 9.3 trillion dong, and long-term, $32 billion, Vietbiz24.com reported.
Of these, $12 billion is from its ineffective investment in buying vessels, constructing seaports, and shipyard activities. The company also had an overdue debt of $76 million.
"Vinalines has borrowed a large amount of loans but its investments have failed to yield effectiveness, leading to enormous overrun expenses and massive debts," the report stated.
Even when its operations had fallen into a depressing state, Vinalines continued to expand its scale by sinking more money into seaport investments, despite its inadequate ability.
The shipping giant was also criticised for ineffective organisation, while its subsidiaries have sunk investment in non-core sectors.
Meanwhile, its chiefs have defied the order of the Prime Minister and the government, and shown sign of breaching laws and causing economic damages.
The Ministry of Transport has ordered Vinalines to restructure in a way that will ensure that its operations only focus on three sectors: shipping lines, seaports, and services.
Commenting on the report, National Assembly delegate Do Manh Hung, deputy head of the NA Committee for Social Affairs, said that although the report is informative, it fails to mention the information that most concerns lawmakers.
"There is little to nothing about the wrongdoings of Vinalines in implementing its projects, and the responsibility of, as well as the crackdown slapped on, individuals involved in its offences," he said.
Hung added that the report mentions nothing about Vinalines's purchase of floating dock No83M.
"This incomplete report cannot please the public. The wrongdoings should be clarified, and the government should set out solutions to handle the case to show its determination to the public," he urged.
