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ReturnVietnam:Silk manufacturers in a restructure push
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PublishDate：
2006-09-13 13:57:00
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Many poorly performing State-owned silk enterprises are making turnaround efforts. General Director Duong Xuan Tuy of the Vietnam Silk Corporation discussed this with Thoi bao Kinh te Viet Nam’s Hung Van.
As far as I know, many subsidiaries of the Vietnam Silk Corporation have been bankrupted. Could you brief on the reasons and procedures for the bankruptcy?
The Prime Minister on May 27, 2005 signed Decision 115/QD-TTg on restructure of State-owned firms under the Ministry of Agriculture and Rural Development (MARD). Upon on thorough study of many factors, our Committee for Business Renewal submitted to the MARD Business Renewal Committee the list of 8 affliates to be bankrupted. They all had been invested largely since establishment of the corporation in 1996 but their assets were almost formed by loans.
For recent years, the silk markets have been changeable. Domestic raw silk supplies are not enough for factories, leading to high prices and losses. Many manufacturers have no choice but to stop operation. In the end of last year, the 8 firms suffered a total loss of VND131.395 billion and a total debt of over VND502.8 billion.
The bankruptcy has followed procedures in accordance with current laws. First, a lender meeting was organized to request permission for bankruptcy. The firms then submitted application for bankruptcy to local economic courts.
Until the end of July, all the 8 businesses had been allowed for bankruptcy. We organized a working group to for managing and liquidating assets of the firms. The group worked to provide necessary documents as required by the Law on Bankruptcy.
Workers in the bankrupted firms came to State agencies to complain about their interests? How has your corporation solved this?
We have worked with competent agencies to find solutions. 1,193 abundant workers of bankrupted firms will get financial support in accordance with the Government’s Decree 41-CP.
After this restructuring effort, how do you comment on prospect of the silk industry in Vietnam as well as the Viseri brand in the world market?
Viseri leaders have worked in the silk industry for long so they have deep understanding of potentials and prospects of this sector in the world market. The restructuring efforts aim at improve competitiveness of the industry. We are going to equitise four affliates in Lam Dong province.
Despite difficulties, we strived to earn a revenue of VND451.1 billion last year. Of which $23.33 million was from exports. In the first seven months of this year, we earned an export value of $16.85 million. We believe that our restructuring efforts will result in turnarounds.
Source: Industry Website
As far as I know, many subsidiaries of the Vietnam Silk Corporation have been bankrupted. Could you brief on the reasons and procedures for the bankruptcy?
The Prime Minister on May 27, 2005 signed Decision 115/QD-TTg on restructure of State-owned firms under the Ministry of Agriculture and Rural Development (MARD). Upon on thorough study of many factors, our Committee for Business Renewal submitted to the MARD Business Renewal Committee the list of 8 affliates to be bankrupted. They all had been invested largely since establishment of the corporation in 1996 but their assets were almost formed by loans.
For recent years, the silk markets have been changeable. Domestic raw silk supplies are not enough for factories, leading to high prices and losses. Many manufacturers have no choice but to stop operation. In the end of last year, the 8 firms suffered a total loss of VND131.395 billion and a total debt of over VND502.8 billion.
The bankruptcy has followed procedures in accordance with current laws. First, a lender meeting was organized to request permission for bankruptcy. The firms then submitted application for bankruptcy to local economic courts.
Until the end of July, all the 8 businesses had been allowed for bankruptcy. We organized a working group to for managing and liquidating assets of the firms. The group worked to provide necessary documents as required by the Law on Bankruptcy.
Workers in the bankrupted firms came to State agencies to complain about their interests? How has your corporation solved this?
We have worked with competent agencies to find solutions. 1,193 abundant workers of bankrupted firms will get financial support in accordance with the Government’s Decree 41-CP.
After this restructuring effort, how do you comment on prospect of the silk industry in Vietnam as well as the Viseri brand in the world market?
Viseri leaders have worked in the silk industry for long so they have deep understanding of potentials and prospects of this sector in the world market. The restructuring efforts aim at improve competitiveness of the industry. We are going to equitise four affliates in Lam Dong province.
Despite difficulties, we strived to earn a revenue of VND451.1 billion last year. Of which $23.33 million was from exports. In the first seven months of this year, we earned an export value of $16.85 million. We believe that our restructuring efforts will result in turnarounds.
Source: Industry Website
