Vietnam shipbuilder slashes 14,000 jobs

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vinashin1State-owned Vietnam Shipbuilding Industry Group, or Vinashin, announced on its website on September 16 that it will cut its workforce by 14,000 to 8,000. The company, whose near-bankruptcy contributed to credit downgrades for the country and banking system concerns, said that there was “no work” for these people anymore.

Vietnam’s state-owned companies are a key source of economic vulnerability, the International Monetary Fund said in August. Many are unable to raise funds for production, and even the job cuts will not be easy because there is no money to pay outstanding salaries and social, health and unemployment benefits.

The company had more than 70,000 employees as of mid-2010 and has been forced to merge, sell or dissolve units as part of its restructuring, a process aimed to transform Vinashin into a flagship industrial exporter.

However, it defaulted on an internationally syndicated $600 million loan in 2010. By then, the company had built up debts of about $4.1 billion.

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Reading Time: 1 minute

State-owned Vietnam Shipbuilding Industry Group, or Vinashin, announced on its website on September 16 that it will cut its workforce by 14,000 to 8,000. The company, whose near-bankruptcy contributed to credit downgrades for the country and banking system concerns, said that there was “no work” for these people anymore.

Reading Time: 1 minute

vinashin1State-owned Vietnam Shipbuilding Industry Group, or Vinashin, announced on its website on September 16 that it will cut its workforce by 14,000 to 8,000. The company, whose near-bankruptcy contributed to credit downgrades for the country and banking system concerns, said that there was “no work” for these people anymore.

Vietnam’s state-owned companies are a key source of economic vulnerability, the International Monetary Fund said in August. Many are unable to raise funds for production, and even the job cuts will not be easy because there is no money to pay outstanding salaries and social, health and unemployment benefits.

The company had more than 70,000 employees as of mid-2010 and has been forced to merge, sell or dissolve units as part of its restructuring, a process aimed to transform Vinashin into a flagship industrial exporter.

However, it defaulted on an internationally syndicated $600 million loan in 2010. By then, the company had built up debts of about $4.1 billion.

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