AFP reported that Vietnamese state owned shipping group Vinashin has sought the deferral of a USD 60 million dollar repayment, stoking concerns the country’s economy could be at risk.

According to The Wall Street Journal, Vinashin asked lenders to freeze the repayment, the first installment due on a multi million dollar loan.

Vinashin's management wrote to lenders on November 29th 2010 asking for deferral if the company finds itself unable to make the first USD 60 million principal repayment due on December 20th 2010.

Mr Truong Van Tuyen CEO of Vinashin said that "Vinashin wishes to emphasize that this is a request for a deferral only, and that it remains committed to repayment of the facility in full."

In 2007, Credit Suisse arranged a USD 600 million loan for Vinashin, the Vietnam Shipbuilding Industry Group, which has been driven to the brink of bankruptcy.

Vinashin's current debt, according to the transport minister, is at least VND 86 trillion, equivalent to about 4.5% of the country's 2009 gross domestic product.

In a brief presented to a World Bank backed business forum, the Hanoi Young Business Association said failure of any of Vietnam's business giants has the potential to rock the entire economy.

(Sourced from AFP)