The Vietnam shipbuilding industry has been developing in 10-year cycles with pinnacles in 1987, 1997, 2007 and 2017. As the highest peak of the latest cycle is over, an oversupply may occur in 2018.
|The shipbuilding industry develops in 10-year cycles
Experts participating in a workshop on January 30 on improving Vietnam’s maritime industry, held at the APM 2018, Southeast Asia’s largest maritime and offshore event, in Hanoi all agreed that Vietnam’s maritime industry has not developed well in recent years, but there have been signs of prosperity.
According to Le Quang Trung, deputy CEO of Vinalines, the nation’s leading shipping firm, the total volume of goods shipped by sea in 2017 reached 160,000 tons, an increase of 7 percent over 2016. The firm owns 90 ships and deep-water seaport and logistics systems serving maritime transport.
“Vinalines is a medium corporation in the region,” he said. “In 2017, it undertook 20 percent of the nation’s total transportation output. Vietnam’s maritime industry in general and Vinalines’ business still have big development opportunities.”
The company, which plans to have an IPO in 2018, is seeking strategic investors who will hold a 35 percent stake. The investors could be domestic partners or companies from Singapore to attend APM 2018.
Pham Hai Bang from the Vietnam Register (VR) cited figures to prove that the industry last year witnessed growth rates of 2-5 percent for bulk, liquid and container cargo transport. Vietnamnet