Shipping & Shipbuilding News - 04 February 2007
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Vietnam - a country that in the mind of the everyday man and woman in the street is one of little economic consequence.

All that, as far as shipbuilding is concerned, is changing.

Vinashin, the national shipbuilding corporation responsible for co-ordinating shipbuilding throughout the country is powering ahead with its twin goals of consolidating and improving national energies and capabilities and producing ships for export.

A government led initiative decreed that shipbuilding was one of the most important industries for Vietnam to get its teeth into, and that the nation would not rest on being a mere assembler of hulls, it also had to produce the machinery and components that go into vessels.

Partnerships with Asian and western firms have seen facilities not only grow larger each year, but new ones added and with factories built to produce deck machinery, engines, steering gear and so on, the capabilities of Vietnam's shipyards are not limited to bashing hulls out. The goal is to produce 65 per cent of such components locally, thereby not only reducing the need for foreign products but to increase the added value of ships exported to other countries.

As far as exports go, the first big export order to hit the headlines was one from Israel for eight car carriers worth $1 billion. Since then amongst a wealth of orders from Vietnam's own shipping firms, orders from foreign companies have came through strongly.

In 2006 Vinashin began steel cutting on the first of ten 5190 dwt cargo ships for Midland Shipping Co of Canada and prior to this in 2004 received a boost of confidence from British firm Graig Investment Limited, for no less than 16 Handymax bulk carriers, dubbed the Diamond 53. After getting five of these delivered, Graig felt confident to place orders for four other bulkers of the Diamond 34 class with options for another four.

Vietnam's shipbuilding industry is poised to take on the future, but will it ever be as dominant as South Korea or China?

Class society DNV certainly thinks so. They agree that it is possible, very likely, that Vietnam will achieve its target of being the fourth biggest shipbuilder in the world in the next ten years. The figures to support that are impressive. Each year for the past ten years the industry has grown 30 per cent annually, and now sits at the number 10 spot. The Ha Long shipyard is receiving on going investment and expansion, with eyes on the bigger fish such as tankers and container vessels.

So far all plans have gone to schedule and targets have been met. Coupled with this are reduced costs, both in terms of labour and ships machinery and it is easy to see that foreign firms, just like Graig, will find Vietnam a very attractive place to have their ships built in.

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