Shipbuilding enterprises in Khanh Hoa hold on in difficult times

On March 29th, the Ministry of Transport's working group met with Nha Trang Shipbuilding Company Limited, Cam Ranh Shipbuilding Company Limited, and HD Hyundai Vietnam Shipbuilding Company Limited (HVS, Ninh Hoa Town) in Khanh Hoa province to implement Government Resolution 220 on the bankruptcy of the Shipbuilding Industry Corporation (SBIC).

According to Mr. Vo Ngoc Tuan, General Director of Cam Ranh Shipbuilding Company Limited, the company has experienced a decline in production and business in recent times. In 2023, the company's production value only reached over 21.6 billion VND, equivalent to 81% of the annual plan. However, the company still maintains a permanent workforce of 60 people, with an average income of 7.8 million VND per person per month.

Nhiều doanh nghiệp đóng tàu ở Khánh Hòa gồng mình vượt — The Ministry of Transport delegation worked with the leaders of Cam Ranh Shipbuilding Company Limited and Nha Trang Shipbuilding Company Limited.

In 2024, the forecast indicates low demand for new barge construction from customers in the region, putting additional pressure on the company's infrastructure and financial capabilities. The company is focusing its efforts on attracting customers with demand for 150-300T barge construction to ensure its business plan is met.

Similarly, Mr. Hoang Anh Tuan, Director of Nha Trang Shipbuilding Company Limited, also stated that in 2023, the company faced financial difficulties due to revenue not meeting the plan (less than 8.8 billion VND).

Significantly, due to financial difficulties, the company has been unable to establish and declare dedicated ports, wharves, waters, and navigation channels as required by regulations.

According to Mr. Tuan, along with expediting the repair of products transferred in 2024, the company will maximize its resources to achieve the set product plan.

Sharing the difficulties faced by businesses, the Ministry of Transport's working group requested that units develop solutions to overcome these challenges, organize lessons learned for each specific product, shorten construction time, and improve quality.

According to Mr. Tran Manh Hung, Deputy Director of the Enterprise Management Department (Ministry of Transport), the two companies need to provide complete information on difficulties, legal conditions, and transparency so that partners can feel secure in cooperating. This will ensure production to maintain income and create a livelihood for workers.

Mr. Hung stated that units cannot wait for work but must proactively seek out sources of services such as repairing cargo ships, oil tankers, barges, etc. This is because repair costs are not high and capital can be recovered quickly. However, it is necessary to shorten the time and keep the cost reasonable.

In addition, companies continue to offer products such as steel structures; provide services to exploit the infrastructure, land, and water resources of the plant, ensuring jobs for workers.

The Ministry of Transport's working group noted that units need to maintain income for employees, avoid situations of unpaid wages, delayed salaries, and unpaid insurance, and prioritize the rights of employees above all else.

Speaking at HD Hyundai Vietnam Shipbuilding Co., Ltd. (HVS), Mr. Kim Song Hag, General Director of HVS, said that HVS will focus on assisting in human resource training.

This also involves increasing workers' incomes to encourage long-term employment and contribute to social welfare in the locality.

Representatives of the Ministry of Transport's working group also expressed their desire for HVS to strengthen training to improve the skills of its workers, expand its scale to create jobs for laborers, and enhance cooperation to further develop domestic shipbuilding capacity.

The government recently issued Resolution No. 220 on handling the Shipbuilding Industry Corporation (SBIC) by declaring the parent company - SBIC - and seven subsidiaries: Ha Long Shipbuilding Company Limited, Pha Rung Shipbuilding Company Limited, Bach Dang Shipbuilding Company Limited, Thinh Long Shipbuilding Company Limited, Cam Ranh Shipbuilding Company Limited; Saigon Shipbuilding Industry Company Limited; and Saigon Shipbuilding and Maritime Industry Company Limited.

Simultaneously, recover the capital stake of the parent company - SBIC - in Song Cam Shipbuilding Joint Stock Company; continue to process matters related to SBIC's subsidiaries, recovering assets and property rights of the parent company - SBIC - and its seven subsidiaries in these enterprises.

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