Ex-chairman Pham Thanh Binh was given the maximum sentence of 20 years in prison for violating state rules.
The Vietnam Shipbuilding Industry Group (Vinashin) ran up debts of up to $4.5bn (£2.9bn) after rapid expansion.
The defendants were convicted of being directly responsible for a loss of $43m.
The court, in the northern port city of Hai Phong, sentenced the remaining eight defendants to between three and 19 years in prison.
Vinashin was established in 1996 with the goal of becoming one of the world’s top shipbuilders.
After the scandal, agencies downgraded Vietnam’s credit rating and cited Vinashin as one of the reasons. In 2010, Vinashin defaulted on its first payment on a $600m loan to creditors.
Binh is considered to be close to Prime Minister Nguyen Tan Dung, who appointed him to office.