Vinashin plans to privatize

Vinashin, Vietnam’s state-run shipbuilder, plans to privatize all its subsidiaries this year to raise funds for expansion, a recent government report said.

The report quoted Vinashin executive Pham Thanh Binh as saying privatisation would give the company more autonomy in decision making and raise productivity. “The subsidiaries, as well as the parent companies, will be listed on the stock exchange following privatisation to raise capital for more investment,” Binh said. He also said Vinashin had won $6 billion in contracts to build vessels for foreign firms and 2006 revenues jumped 45% from 2005 to around $716 million.

Binh said Vinashin would focus on oil tanker building. The company is now capable of making 100,000DWT crude oil tankers and 150,000DWT FSO units.