Vietnam shipbuilder gets $600 mln Credit Suisse loan

Global investment bank Credit Suisse has provided a credit of US$600 million to Vietnamese shipbuilder Vinashin to help implement the latter’s business development plans.
Vinashin, short for Vietnam Shipbuilding Corp, says the loan will be used to upgrade a series of large shipyards including Ha Long, Ben Kien, Pha Rung, Nha Trang and Song Cam, and to improve its cargo service arms like Vinashin Lines and Bien Dong Shipping.
The nation’s largest shipbuilder is also speeding up other key projects being financed by local commercial banks and its financial arm, Vinashin Finance and Securities.
It is working out a detailed plan to rebuild the Cua Viet seaport in the central Quang Tri province.
The VND1.5 trillion (US$94 million) project will turn Cua Viet into a 300-400 ha port complex with a shipyard, ecotourism facilities, a golf course, and a wharf to accommodate 100,000-ton ships.
Work on the project is expected to begin soon.
Vinashin has also got the nod to build a VND1.3 trillion ($81 million) shipyard in the northern port city of Hai Phong.
The complex will house a 40-ha factory and 20-ha wharf.
The group has on hand contracts worth up to $12.3 billion to build seagoing vessels over the next few years, with orders from foreign companies accounting for $10 billion, and domestic firms taking up the rest.
Meanwhile, work has commenced on a customized floating storage and offloading unit (FSO) for the state-run oil and gas group PetroVietnam.
The $110 million FSO with cutting edge technology and facilities will be a first for Vietnam.
More targets
Vinashin aims to post revenues of $1 billion this year, up from $690 million in 2005.
Selling off the shares of its 21 remaining affiliates is also a key target for the group this year.
To implement the government’s strategy, Vinashin will build a national shipping fleet to meet domestic transport and 30 percent of the export transport demand for crude oil.
The shipbuilder will first focus on making oil tankers. Vinashin is capable of making 100,000-ton crude oil tankers and 150,000-ton floating storage and offloading units.
Vinashin says it needs VND40 trillion ($2.5 billion) to carry out projects to reach the goal of $1-billion in ship exports by 2010.
Vinashin’s plans for the future include upgrading 10 major shipyards capable of building 3,000-10,000 ton ships, building seven shipyards, six industrial parks and seven industrial complexes throughout Vietnam.
Established in 1996, state-run Vinashin and its 21 subsidiaries aim to transform Vietnam into the world’s 11th largest shipbuilder, four spots up higher than its current standing, in the near future.
The corporation has developed its maritime carrier markets in Europe, America, the Republic of Korea and Japan.
Source: PR, Thanh Nien – Compiled by Dong Ha