The Vietnamese government has suspended the head of one of the country's largest state-owned enterprises for alleged mismanagement less than two months after he took office, state media said Monday.Tran Quang Vu, the chief executive offi
Hanoi - The Vietnamese government has suspended the head of one of the country's largest state-owned enterprises for alleged mismanagement less than two months after he took office, state media said Monday.
Tran Quang Vu, the chief executive officer of Vietnam Shipbuilding Industry Group (Vinashin), was suspended Friday decision to allow an investigation into Vinashin's recent operations, the state-run newspaper Thanh Nien quoted Nguyen Xuan Phuc, head of the government office, as saying.
The suspension occurred less than a month after police arrested Vinashin chairman Pham Thanh Binh for alleged mismanagement that led the company to the brink of bankruptcy.
The government appointed Vu, the former chief executive officer of one of Vinashin's top subsidiaries, chief executive of Vinashin on July 1, but media reports said Nam Trieu Shipbuilding Industry Corporation also got into financial trouble under Vu's management.
Vinashin got into financial difficulties when it diversified beyond its core business and the global recession hit its revenue. It left the company unable to keep up with its debt repayments and resulted in salary cuts for more than 70,000 employees and the dismissal of 5,000 others, the government said.
As of the end of June, Vinashin had total assets worth 90 trillion dong (4.63 billion dollars) and debts in different currencies totaling 4.6 billion dollars, the government said.
Several economists have criticized the government for offering Vinashin unjustified state support, including a 750-million-dollar state loan in 2005 financed by a bond sale.
In a move to rescue Vinashin, the government last week asked local commercial banks to allow Vinashin to suspend payments on its debts and negotiated with international creditors.
Hanoi - The Vietnamese government has suspended the head of one of the country's largest state-owned enterprises for alleged mismanagement less than two months after he took office, state media said Monday.
Tran Quang Vu, the chief executive officer of Vietnam Shipbuilding Industry Group (Vinashin), was suspended Friday decision to allow an investigation into Vinashin's recent operations, the state-run newspaper Thanh Nien quoted Nguyen Xuan Phuc, head of the government office, as saying.
The suspension occurred less than a month after police arrested Vinashin chairman Pham Thanh Binh for alleged mismanagement that led the company to the brink of bankruptcy.
The government appointed Vu, the former chief executive officer of one of Vinashin's top subsidiaries, chief executive of Vinashin on July 1, but media reports said Nam Trieu Shipbuilding Industry Corporation also got into financial trouble under Vu's management.
Vinashin got into financial difficulties when it diversified beyond its core business and the global recession hit its revenue. It left the company unable to keep up with its debt repayments and resulted in salary cuts for more than 70,000 employees and the dismissal of 5,000 others, the government said.
As of the end of June, Vinashin had total assets worth 90 trillion dong (4.63 billion dollars) and debts in different currencies totaling 4.6 billion dollars, the government said.
Several economists have criticized the government for offering Vinashin unjustified state support, including a 750-million-dollar state loan in 2005 financed by a bond sale.
In a move to rescue Vinashin, the government last week asked local commercial banks to allow Vinashin to suspend payments on its debts and negotiated with international creditors.