Vinashin gets new acting head

Vietnam: State-owned shipbuilder Vietnam Shipbuilding Industry Group (Vinashin) has a new acting head, following the suspension of previous head, Tran Quang Vu, for alleged mismanagement.

The government appointed the company's chief business director Nguyen Quoc Anh on August 30 to the position.

Vinashin's rapid expansion and shaky financial state has led to strong criticism from the ruling Vietnamese Communist Party. The Communist Party's central committee concluded that his wrong doings called for disciplinary actions, as he had been irresponsible in the mobilisation, management and use of state capital, pushing Vinashin to the brink of bankruptcy, local press reported.

This comes on the back of recent restructuring plans under which Vinashin must hand over 13 shipyards, shipbuilding industrial parks and shipping lines to PetroVietnam and Vinalines. The two state-owned companies will also absorb Vinashin's debts.

The Vietnamese Ministry of Transport (MoT) released a statement in early July saying that the firm's financial ability was "in a very difficult stage" that should "be urgently and resolutely restructured" both in business and manufacturing operations and financial investments.

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