Vietnam shipbuilder slashes 14,000 jobs

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply