It is reported that Vietnam has granted tax concessions to nearly bankrupt shipbuilder Vinashin, after speculation authorities would find a way to help the firm meet a debt deadline.

Among the concessions, the state owned firm will get a grace period until December 31st 2011 for paying its taxes. State linked Tuoi Tre did not give the amount of tax involved or the period it was due for. The one year delay coincides with a 12 month deferral Vinashin had reportedly sought for repayment of its international debts.

Mr Nguyen Ngoc Su chairman of Vinashin was quoted in official media as saying the firm had no way to immediately make the payment and was still waiting for the final answer on its deferral request.

The government has said Vinashin must settle its own debts, which total at least VND 86 trillion. Despite those comments, speculation has grown that the government would step in to help Vinashin.

The Tuoi Tre report listed four separate tax concession measures, including a deferral of taxes on imported equipment, and the general one year grace period. Vinashin expects to secure capital to repay creditors through a restructuring of the group but this takes times.

Global ratings agency Moody's last week downgraded Vietnam's government bond rating to B1, an undesirable investment, from Ba3 because of Vinashin's debts as well as other economic factors.

(Sourced from www.thanhniennews.com)