The shipyard SBIC in Vietnam – formerly “Vinashin” – which is also well-known among German shipowners, is insolvent.
The Vietnamese Ministry of Transport has confirmed media reports about the insolvency of the Shipbuilding Industry Corporation (SBIC).
According to the government, the bankruptcy of shipbuilder SBIC in the first quarter of 2024 is unavoidable. This should at least help the subsidiaries to operate effectively and free themselves from old debts.
“In fact, some shipbuilding companies under SBIC work very well and still make profits every year, but they are not enough to pay interest and repay old loans from the Vinashin era,” the Ministry of Transport said.
Vinashin becomes SBIC in 2013
SBIC was founded in 2013 as a result of the reorganization and restructuring of the Vinashin Group. A mountain of debt of over 4 billion dollars had accumulated there. Between 2000 and 2010, Vinashin had run into financial difficulties and a significant debt crisis due to mismanagement, cost overruns and a lack of transparency.
SBIC is the largest shipbuilder in the country. In the past, it has repeatedly delivered newbuildings for the global market, including multipurpose freighters, carriers and bulkers. The shipping company E.R. Schiffahrt, for example, was a customer from Germany and had received the bulkers “ER Bergamo” and “ER Basel” from Vinashin.
According to the Vietnamese government, the insolvency is now aimed at creating the conditions for reviving the company and for restructuring measures.