Vinashin to invest

Vinashin, Vietnam?s state-run shipbuilder, is to pump VND650 billion ($40 million) into building ten facilities to support the Dung Quat Shipbuilding Industrial Plant in central Vietnam

Construction of the factories is scheduled to begin this quarter in the Dung Quat Economic Zone of Quang Ngai Province. Under the plan, the new facilities will focus on manufacturing engines, pumping equipment, boilers and lifting equipment. Each plant will cost between $3.7 million $4.3 million.

Vinashin has also recently opened a new subsidiary, Vinashin Offshore Industries (Vinaoffshore) in Hanoi. The new entity will focus on manufacturing FSO units, moorings, oil drilling vessels and other industrial equipment. Vinashin Offshore also uses resources from the parent company and other affiliates to sign manufacturing contracts and upgrade facilities for marine exploitation.

Selling off shares in its 21 remaining affiliates will be a key target for Vinashin this year.

The giant said it was in need of $2.5 billion to carry out projects under the strategy of $1-billion in ship exports to 2010. To meet the export target, Vinashin plans to invest in upgrading 10 major shipyards capable of building 3,000-10,000 ton ships. It also plans to build seven shipyards, six shipbuilding industrial parks and seven shipbuilding industrial complexes throughout Vietnam.

Vinashin has mobilized its investment and business capital through the Shipbuilding Industrial Finance Company. The group will set up a financial leasing company, a securities company, an insurance company, and shipbuilding industrial investment fund to attract domestic and foreign capital sources. Along with its 20 subsidiaries, it has helped Vietnam become the world?s 11th largest shipbuilder.