Vietnam Arrests Four Shipping Executives Caught in Scandal

Vietnam’s state media says police have arrested four senior executives at a major state-owned shipping company for alleged mismanagement.

The media reports that Duong Chi Dung, former Chairman of Vietnam National Shipping Lines (Vinalines) and three other executives were detained Friday for allegedly causing losses of $80 million from 2009-2010 causing the company to default on more than 1.1 billion dollars. The losses were the result of what officials say were bad investments in sea ports and ship-repair factories. A government inspection also revealed that one billion dollars was spent on 73 vessels that were in poor condition, incurring significant repair costs. 

The arrests come less than four months after Dung was promoted to the head of the government’s Maritime Department. Two other top Vinalines executives were arrested on Thursday.

Just last month nine senior executives of another major state-owned company, the Vietnam Shipbuilding Industrial Group (Vinashin) were prosecuted for their involvement in intentionally violating state regulations. 

Vinashin’s near collapse in 2010 sparked investor fear in state run agencies; agencies that have become a major pillar of Vietnam’s economy. State-owned groups control two-thirds of capital and assets in Vietnam and many are known to have close ties with government officials.

Vinalines operates a fleet of oil tankers, container ships and other vessels.