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| The Vietnamese shipbuilding industry is poised for significant growth, with a projected annual domestic demand for 16-41 new vessels. (Photo: VNA) |
Vietnam’s shipbuilding sector is on the cusp of a promising future, underpinned by burgeoning domestic and global demand for new vessels. Currently, the country holds a notable position in the global shipbuilding market, ranking seventh and accounting for 0.61% of the market share.
According to the Vietnam Maritime and Inland Waterways Administration, the nation’s maritime ambitions are set high. By 2030, Vietnam aspires to expand its fleet to 1,750 vessels, totaling a capacity of 18 million tonnes. This equates to an impressive annual domestic demand for new shipbuilding of 16-41 vessels, or 0.7-0.8 million tonnes.
In tandem with this, the global appetite for new ships is anticipated to surge by 3.95% each year, reaching a substantial 5,284 vessels with a cumulative capacity of 311.2 million tonnes. Vietnam is well-positioned to capitalize on this momentum, possessing an annual shipbuilding capacity of approximately 3.5 million tonnes.
Hoang Hong Giang, Deputy Director of the Vietnam Maritime and Inland Waterways Administration, foresees a bright future for the industry. He estimates that by the end of this decade, Vietnam could be exporting 2.7-2.8 million tonnes of vessels annually, seizing a notable 0.88-0.9% share of the global market.
The country’s shipbuilding ecosystem is robust, with 88 dedicated enterprises and 411 inland waterway vessel production facilities. Notably, around 120 companies specialize in the construction and repair of vessels exceeding 1,000 tonnes, showcasing a strong capacity for large-scale projects.
Vietnam’s prowess in shipbuilding extends to a diverse range of vessels. In addition to commercial carriers, the country also constructs tugboats, patrol boats, rescue ships, high-speed aluminum hull vessels, and service ships for both domestic utilization and export. This versatility underscores the industry’s adaptability and responsiveness to market demands.
However, challenges remain. The industry is confronted with the imperative to adapt to the global shift towards green energy and carbon emission reduction. Many shipyards face infrastructural and resource constraints in their quest to build environmentally friendly ships. Moreover, the absence of clear tax incentives and financial support policies for green energy transitions presents an additional hurdle.
Pham Hoai Chung, Chairman of the Shipbuilding Industry Corporation (SBIC), underscores the impact of the energy transition on the shipbuilding domain. He highlights how Vietnam’s shipbuilding sector, historically focused on assembly and processing, now faces the task of enhancing its value proposition.
To maintain competitiveness, shipyards must address the issue of outdated infrastructure and technology. Furthermore, a lack of investment in technological upgrades and design capabilities impedes the industry’s ability to innovate and develop market-leading prototype vessels.
Despite these challenges, the Vietnamese shipbuilding industry remains well-positioned to harness the opportunities presented by increasing global maritime transport demand. The country’s export sector relies heavily on seaborne trade, and the shipbuilding industry has proven its mettle in constructing a diverse array of commercial vessels, including bulk carriers, oil tankers, and car carriers. The emergence of supporting industries further bolsters the sector’s prospects.
Foreign investment, particularly from technologically advanced countries, is on the rise in Vietnam’s shipbuilding sector. This influx of investment offers invaluable opportunities for knowledge transfer and capacity building, enabling domestic shipbuilders to enhance their expertise and integrate cutting-edge technologies.
To fully capitalize on these advantages, Chung emphasizes the importance of leveraging Vietnam’s strategic location, competitive labor costs, and the ongoing influx of foreign investment and technology transfer. By doing so, the sector can solidify its position as a key player in the global shipbuilding arena.
The Vietnam Maritime Corporation (VIMC) is also steering the industry towards modernization, with a focus on fleet renewal and new shipbuilding projects. Hoang Long, head of the VIMC’s Transport Department, highlights the collaboration between VIMC and SBIC on specialized vessels, such as container ships and bulk carriers, as a strategic move to enhance competitiveness and investment efficiency.
Recognizing the strategic importance of the shipbuilding industry, the Vietnamese government has designated it as a priority sector for investment. Various tax and land-use incentives outlined in national regulations underscore this support. Moving forward, authorities will review existing policies to ensure they remain aligned with economic development strategies and maritime growth objectives, providing a stable framework for the industry’s expansion.
Deputy Minister of Construction Nguyen Xuan Sang underscores the pivotal role of the shipbuilding industry in propelling Vietnam towards its economic aspirations. With the National Assembly targeting an ambitious 8% GDP growth rate by 2025, the maritime and shipbuilding sectors are integral to this vision. Moreover, sustainable development in shipbuilding will contribute to Vietnam’s commitment to achieving net-zero emissions by 2050.
Looking ahead, the maritime sector is anticipated to make a significant contribution to the nation’s economy. By 2030, marine-based industries are projected to account for approximately 10% of GDP, with coastal provinces expected to contribute a substantial 65-70% of the national GDP. This underscores the vital role that maritime activities will play in Vietnam’s economic landscape.
As economic activities related to the sea expand, sustainability will remain a key focus. International sustainability standards will be adhered to, ensuring responsible resource management and environmental stewardship. With increasing global demand, strategic policy support, and a thriving foreign investment landscape, Vietnam’s shipbuilding industry is poised for a transformative expansion and modernization journey in the coming years.
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