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Samsung to help revive Vietnam's ship industry

Publication Date : 18-02-2014


The Vietnamese government has called on relevant bodies to accelerate coordination efforts with the South Korea-based Samsung group to restructure domestic shipbuilding activities.

Under the dispatch, the Ministry of Planning and Investment (MPI) has been tasked with choosing several potential projects for inviting foreign investment from now until 2020, which it will then present to Samsung.

Vietnam will propose that Samsung join in efforts to restructure the local shipbuilding industry by working with the Vietnam Shipbuilding Industry Corporation (SBIC), previously Vinashin Group.

According to VnExpress online, South Korea is a leading shipbuilding country in Asia and the world. Recently, Samsung C&T, a member of Samsung Group, signed a memorandum of understanding (MoU) with the MPI. Under the MoU, Samsung C&T will join construction projects ranging from building hydro-power plants to creating telecoms infrastructure.

Concerning the debt restructuring of Vinashin, a company official confirmed that by the end of this year or early next year, the group's debt restructuring initiatives will be complete.

The official said the SBIC has reached an agreement with its creditors, and Vinashin has done the same, to restructure the debts in order to minimise overall debt and lower interest rates or to reschedule the debt.

To date, Vinashin has partially resolved its US$4 billion debt and sought a way out for the remaining sum.

To recover its business and resume production is now the central task of the SBIC, so it can generate enough finances to cover its foreign debt of over $600 million, which was rescheduled by international creditors and is due in 2025. The SBIC is seeking partners to help sell its vessels.

Also under Dispatch 862/VPCP-QHQT, the State Capital Investment Corporation (SCIC) has been asked by Deputy Prime Minister Hoang Trung Hai to work with Samsung to buy stock or invest capital.

Hai has also asked the MPI to work with relevant bodies to select potential projects for Samsung to study.

The Ministry of Industry and Trade will work closely with Samsung to apply investments to Vung Ang Thermal Power Plant 3.

The Ministry of Transport will work with Samsung while constructing the Long Thanh international airport.

The Ministry of Information and Communications will also work and co-operate with Samsung in the field of information technology and e-government.

The Ha Noi People's Committee will offer suitable locations for Samsung to implement its R&D projects and to set up its auxiliary facilities.


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