The Vietnamese Prime Minister has recently signed a decision on restructuring eight state-owned loss-making silk firms under the Ministry of Agriculture and Rural Development (MARD).
The poorly performing silk enterprises are all affiliated to the Vietnam Sericulture Corporation (Viseri), said General Director of the corporation Duong Xuan Tuy.
Unstable silk markets and thin raw silk supplies are blamed for the bankruptcy of eight production facilities, which reportedly suffered a total loss of VND131.4 billion and a total debt of over VND505.8 billion by late last year.
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. Later, a working group was organized to manage and liquidate assets of the firms. The group worked to provide necessary documents as required by the Law on Bankruptcy.
As many as 1,193 abundant workers of bankrupted firms will, meanwhile, get financial support in accordance with the Government’s Decree 41-CP, said Tuy.
Tuy also asserted that such restructuring effort is aimed to help improve competitive of the local silk industry, which still reported a revenue of VND451.1 billion ($28.37 million) despite difficulties. Of the sum, $23.33 million came from exports.
In the first seven months of this year, the industry generated an export value of $16.85 million.
Currently, silk products are listed among key export items of Vietnam. Others include crude oil, coal, plastic products, rubber, coffee, electric wire, seafood, footwear, garments and textiles, woodwork products and handicrafts.
Vietnam Economic Times
Vietnamese
