Shipbuilding corporation sees declining losses
Shipbuilding corporation sees declining losses
The losses of the Shipbuilding Industry Corporation (SBIC) fell from VND6.40 trillion ($304.76 million) recorded last year to VND2.18 trillion (US$103.81 million) in 2014.
Online newspaper Dau tu (Vietnam Investment Review) reported the figures, citing the latest SBIC business report.
The total losses might reach nearly VND4.10 trillion ($195.24 million) if the company restructuring and asset liquidation revenues, which amounted to VND1.90 trillion ($90.48 million), are excluded.
The report showed that the year 2014 continued to be a difficult period for the shipbuilding industry. The company could hardly seek export contracts this year despite the signs of recovery detected in the transport market.
Credit institutions tightening financing procedures also caused cancellations and delays of some of the company's existing contracts. The report also added that the loan costs it covered remained high this year, reaching VND2.80 trillion ($133.33 million).
The SBIC general director said that the company mainly built ships for Dutch shipyards group Damen and the Navy, besides developing fishing vessels, this year.
The company achieved approximately VND5.7 trillion ($271.43 million) in production values in 2014, which is equivalent to last year's figure.
It obtained more than $200 million from the sales of 76 ships, or five units, which exceeded the target it had set for this year. These were also higher than last year's results, which were $142 million and 47 vessels.
The total turnover attained in 2014 amounted to more than VND7.64 trillion ($363.81 million), which is nearly 30 per cent higher than the annual quota.
The SBIC was established in October 2013 following a Transport Ministry decision based on the restructuring of the insolvent Viet Nam Shipbuilding Corporation, or Vinashin.
The company has reportedly finished the restructuring of $135 million in foreign debts and approximately VND16.61 trillion ($790.95 million) in domestic debts. It currently aims to concentrate on restructuring the other debts related to contractors and international bonds.
News website VnExpress reported earlier this month that Damen is expected to buy at least 70 per cent of the stakes of an SBIC affiliate, Song Cam Shipbuilding Joint Stock Company.
