Vietnam’s shipbuilding industry navigating challenges

Vietnam’s shipbuilding industry is gaining recognition worldwide, ranking as the seventh-largest in shipbuilding capacity globally. However, its market share in the global arena remains modest. This is a story of a thriving industry balancing challenges and opportunities as it adapts to the changing needs of maritime transport.

Challenges in the Shipbuilding Industry

According to Pham Hoai Chung, chairman of the state-owned Shipbuilding Industry Corporation, the shipbuilding sector is experiencing significant changes. Global shipping routes are shifting, and there is a rising demand for larger, more advanced vessels. These changes are not temporary trends but a major transformation in maritime transport.

Vietnam’s shipbuilders face several challenges:

1. Reducing Carbon Emissions:
   The industry must comply with the International Maritime Organization’s (IMO) strict rules for cutting carbon emissions. This requires investing in innovative, eco-friendly ship designs and green technologies.
2. Supply Chain Issues:
   International conflicts disrupt supply chains, making it harder to source essential materials and maintain production schedules.
3. Technology Gap:
   Compared to established shipbuilding nations, Vietnam is behind in technology, production capacity, and global competitiveness.

Despite these hurdles, Vietnam has a strong foundation in shipbuilding, with over 88 enterprises and 411 facilities producing vessels for inland waterways and the sea. Local builders are capable of constructing advanced, large-capacity ships, but the industry must evolve to meet global standards.

Korean Shipbuilders Moving to Secure a New Production Base

Opportunities for Growth

The future holds great promise for Vietnam’s shipbuilding industry, driven by the rapid growth of global trade. Experts predict a 10% annual increase in Vietnam’s maritime transport demand from 2023 to 2030.

Here are some opportunities for growth:

1. Growing Merchant Fleet Demand:
   By 2030, Vietnam will need to build and replace ships with a total capacity of 4 to 5 million deadweight tonnage (DWT).
2. Focus on Green Technology:
   As the global market moves toward clean fuel and eco-friendly ships, Vietnam can modernize its production to align with these trends.
3. Rising Freight Demand:
   With global fuel prices rising by 20% in the last year, maritime freight demand is expected to grow 3% annually until 2030. This offers a chance for Vietnam to cater to medium-sized commercial vessels and meet market needs.

Path Forward

To capitalize on these opportunities, Vietnam must:

• Invest in Innovation: Develop and adopt advanced shipbuilding technologies.
• Enhance Competitiveness: Focus on medium-sized commercial vessels where Vietnam has a strong foothold.
• Strengthen Infrastructure: Upgrade existing facilities to produce larger, more technologically advanced ships.