Vietnam's Shipbuilding Industry Faces Challenges and Opportunities

Vietnam's Shipbuilding Industry Faces Challenges and Opportunities

Vietnam is strengthening its place in the global shipbuilding market, currently ranking seventh worldwide in capacity, though its share of the market remains small.

According to Pham Hoai Chung, chairman of the state-owned Shipbuilding Industry Corporation, the industry is evolving due to changes in shipping routes and the growing demand for larger, more advanced ships.

Challenges for Vietnam’s Shipbuilding Sector

Chung highlighted several factors affecting Vietnam's shipbuilding industry:

• The country’s commitment to net-zero carbon emissions.
• The International Maritime Organization's (IMO) carbon reduction goals.
• The impact of international conflicts on the industry.

He noted that Vietnam lags behind other countries with advanced shipbuilding industries, especially in technology, production capacity, and competitiveness.

Current Strengths

Despite these challenges, Vietnam has a strong shipbuilding foundation, including:

• 88 shipbuilding companies and 411 inland waterway vessel facilities.
• The ability to produce large-capacity ships, specialized vessels, high-speed boats, and ships with advanced technology for both domestic and international markets.

Vietnam’s maritime transport demand is expected to grow by 10% annually from 2023 to 2030, with the country needing to build or replace 4 to 5 million deadweight tonnage in its merchant fleet by the end of the decade.

Global Trends and Opportunities

The global shipbuilding market is shifting toward:

• Modernization with larger ships.
• The use of green technology and clean fuels.

Rising global fuel costs (up by 20% last year) are also pushing demand for maritime transport to grow by 3% annuallyby 2030.

To take advantage of these changes, Chung suggested Vietnam should focus on:

• Leveraging its existing strengths in shipbuilding.
• Prioritizing medium-sized commercial vessels.

International shipowners are also investing in advanced technologies to improve fuel efficiency, reduce emissions, and cut costs, creating further opportunities for Vietnam’s shipbuilders.

By addressing its challenges and adapting to global trends, Vietnam’s shipbuilding industry could secure a stronger position in the international market.