Bank backs Vinashin

A contract to guarantee advance-money for the building of six cargo ships for export to Britain was signed between the Viet Nam Shipbuilding Industry Corporation (Vinashin) and the Bank for Investment and Development of Viet Nam (BIDV). The six 53,000-tonne ships are among a series of 17 ships built for Britain.

Under the contract, BIDV will become a guarantor for the advance-money, 45%, which will eventually total $71.55 million. The money will be used to implement contracts on building the six ships, worth $22.4 million each, for Graig Investment Ltd in Britain.

This is the largest ship building contract ever signed by Vinashin and is part of the programme to build 17 ships, worth nearly $400 million for export to Britain.

BIDV General Director Tran Bac Ha said that his bank together with the Bank for Foreign Trade of Viet Nam and the Industrial and Commercial Bank of Viet Nam, earlier co-guaranteed the advance-money for the first five ships. BIDV has also provided Vinashin with loans and guarantees for contracts to build major ships with tonnage ranging from 6,500 to 30,000DWT and 700 TEU container ships, he said.