Vinalines Tries to Sell Its Run-Down $22m Floating Dock for $1m

After millions in investment, state-run shipping company Vinalines has proposed to sell its massive floating dock for just VND34.8 billion (US$1.56 million).

While this might seem like a princely sum, it pales in comparison to the VND500 billion (US$22.43 million) the company spent purchasing and repairing the dock, reports Thanh Nien. Add to that a pile of insurance and port fees the company has racked up over the years as its investment sits idle in Dong Nai and the potential money earned from the sale would be little compared to Vinalines' original investment.

It all began back in 2008, when the company and its shipbuilding subsidiary VNLSY purchased the floating dock second-hand from Russia for US$9 million. Vinalines then spent an additional US$10.5 million in repairs but failed to find joint investors to operate the dock, forcing the company to suspend work in 2012.

Last month, Vinalines wrote a letter to the Ministry of Transport, proposing to sell the dock at an asking price of VND34.8 billion (US$1.56 million) in an attempt to recoup a small fraction of the money invested. This price was suggested by a local consulting company, the news report says, as time and disrepair have heavily devalued the dock.

Buying the dock was controversial in the first place, as Vinalines paid roughly four times the offered price of US$2.3 million to for the purchase. At the time, however, Vinalines chairman Duong Chi Dung gave his seal of approval, only to later be found guilty of receiving VND10 billion (US$448,700) in kickbacks from the sale along with the company's general director, Mai Van Phuc. Both Dung and Phuc were sentenced to death in 2013 for their actions, while eight other Vinalines executives and customs officers received jail terms of up to 22 years.

[Photo via Thanh Nien]