Vinalines to focus on three main business lines

The Vietnam National Shipping Lines (Vinalines) will focus on three core business lines, including maritime transportation, seaport development and services, according to its restructuring plan approved by the Prime Minister.

Regarding maritime transportation, Vinalines will have to restructure its fleet of ships, sell outdated ships to offset losses, focus on domestic market and raise shipment share to 25-30pct.

The corporation will review shipbuilding projects in accordance with its financial capacity and market demand.

In terms of services, the corporation will focus on developing full-package services and expand its overseas operations.

For maritime transportation, it will also focus on exploiting the remaining ports, especially those in Hai Phong, Quang Ninh, Ba Ria-Vung Tau and Ho Chi Minh City. Construction of the Van Phong international seaport project will be postponed to give opportunities for other domestic and foreign investors.

The plan stipulates that Vinalines will hold certain amounts of charter capital in its 34 affiliates and withdraw funds from its non-core business lines in other 37 companies between 2012 and 2015.

By December 2011, Vinalines had managed 154 ships with a total capacity of more than 3.4 million tons.

However, Vinalines had suffered from investment and fund mismanagement and its top officials had violated Government instructions and investment laws, causing heavy economic losses and eroding the public's trust.

Source VGP