Posted on December 1, 2025
Vietnam’s state-owned shipbuilding company, SBIC, is facing imminent bankruptcy, prompting government intervention aimed at restructuring the corporation. This decision follows a resolution approved by the Politburo, which has sanctioned the bankruptcy of SBIC and its seven subsidiaries.
Leading this initiative is Deputy Minister of Transport Nguyen Xuan Sang, who has asserted that the bankruptcy has become unavoidable after failed restructuring attempts. SBIC is burdened by substantial debt that far exceeds its total assets, making it financially unsustainable. The bankruptcy process aims to facilitate a transfer of ownership, allowing the company and its subsidiaries to operate free from old debts, thereby enabling profitable units to escape the financial liabilities associated with SBIC’s past.
The challenges faced by Vietnam’s state-run shipbuilding sector can be traced back over the past decade, characterized by mismanagement and unmanageable cost overruns. The situation worsened following the collapse of the former state shipbuilder, Vinashin, in 2010, which was subsequently restructured as SBIC in 2013, inheriting $4 billion in debts from Vinashin.
Despite its historical prominence, positioned as the fifth-largest shipbuilder globally during its peak from 1999 to 2007, SBIC’s operations have struggled to achieve profitability. Recently, the Transport Ministry reported that SBIC has been unable to meet its financial obligations owing to its inherited debts from Vinashin.
In response to the crisis, Minister Sang has conducted a comprehensive review of SBIC’s operations nationwide and has begun drafting a bankruptcy roadmap focused on maximizing asset recovery and capital. Following the filing for bankruptcy, the process will progress through a legal framework that includes asset liquidation and debt repayments, with operational units continuing their work under existing contracts during the transition.
Despite the current turmoil, Sang maintains that this is an opportune moment for rejuvenating the maritime industry. With global trends shifting towards sustainable shipping solutions, there is potential for Vietnamese shipyards to reinvent themselves by producing a new generation of vessels that utilize alternative fuels. The completion of the bankruptcy process could, therefore, herald a fresh start, allowing shipyards to adapt to evolving market demands and seize new development opportunities.
