State-owned shipbuilding group Vinashin which is under billions of dollars in debt said Thursday it expected a 205% increase in profit this year or a turnover of VND21 trillion (US$ 1 billion).
The forecast was made Thursday in a national meeting chaired by Standing Deputy Prime Minister Nguyen Sinh Hung to evaluate the restructuring process of the debt laden shipbuilder in 2010.
Vinashin has basically completed transferring its units and projects to the Vietnam Oil and Gas Corporation and the Vietnam National Shipping Line Corp.
The remaining units will undergo major restructuring including renovations in leadership mechanism and human resource management.
After restructuring, the group is expected to comprise one parent state-owned Limited Liability Company, 19 subsidiaries, one associated company and 22 sub-subsidiaries.
The restructured Vinashin will own a VND68 trillion (US$3. 5 billion) in total assets against a VND53 trillion (US$ 2.7) debt.
Its output capacity will reach 1.5 million tons a year while repair capacity will hit 20-25% of the figure.
The group expects to finish restructuring 25 units in the first quarter of 2011, 30 units in the second quarter, 37 in the third and 25 units in last three months of the year.
As of June 2010, Vinashin faced debts totaling VND86 trillion, while its total assets were worth VND104 trillion, due to a sudden drop in the demands for shipbuilding following the global financial crisis, and Vinashin leadership’s weaknesses and wrongdoings.
The government has offered Vinashin zero-interest loans to pay employees’ salaries, unemployment benefits and social, health and unemployment insurance.