Vietnam aiming high says DNV

Vietnam?s fledgling shipbuilding industry has its sights on going higher. Although it is still some way behind South Korea, Japan and China, DNV management agree that Vietnam will move higher in the world shipbuilding league table.

The Vietnamese state shipbuilder Vietnam Ship Industry Corporation (Vinashin) has ambitions to become the world?s fourth largest shipbuilder over the next decade, compared to 10th slot now, and $3 billion is being invested in its development over that period.

Indicating the explosive growth of Vietnamese shipbuilding, Vinashin, which controls the majority of the country?s shipyards, has registered an annual growth in excess of 30% over the past 10 years. It also recently reported that it had secured export contracts valued at a total of $4.5 billion this year. The contracts are to build cargo vessels with loading capacities ranging from 5,300 to 56,000 tonnes, and are mostly signed with international shipping clients.

Significant contracts secured recently include the $1 billion deal to supply eight car carriers to Israel. State oil company PetroVietnam has also signed a letter of intent with Vinashin for three Aframax tankers. The three 105,000 DWT vessels are valued at around $65 million each and will all be delivered by 2009.

“There is ongoing development and fundamental change at most Vietnamese shipyards and I firmly believe they will expand their capacity and win the confidence of even more overseas owners in the future,” said Nguyen Quoc Anh, Vice President of Vinashin.

Vietnam shipbuilding came under the spotlight when Vinashin, in 2004, entered into an agreement with the UK?s Graig Group for the construction of 15 DNV-classed, 53,000 DWT bulk carriers. The $322.5 million contract was split into two, with Nam Trieu shipyard (Nasico) in Hai Phong building six ships and sister company Ha Long shipyard in Quang Ninh building the remaining nine.

“The shipbuilding industry in Vietnam is still lagging behind other countries,” said Anh. “To bridge the gap, Vinashin is investing millions of dollars to improve its shipyards through modernization and increased efficiency and rationalization.” He continues, “Advanced technology and international cooperation are at the top of the agenda for Vinashin. Only through the application of advanced technology and cooperation with well-reputed international companies like DNV can the shipbuilding industry in Vietnam see further development.”

The Halong shipyard launched its first Graig vessel, dubbed “Diamond 53” ships, in September, with delivery expected later this year and subsequent deliveries expected at five-month intervals. “The Graig deal marks our largest vessel order from an overseas customer, and it will hopefully bode well for more such orders from abroad,” says Mr Nguyen Duc Than, General Director of Ha Long shipyard.

Expansion plans at the Ha Long shipyard are already underway with a new slipway and dry dock under construction. The yard also plans to increase its workforce from 3,000 to 5,000 over the next three years. “We have expansion plans and this includes attracting and training our workers to ensure an adequate level to meet the increasing workload,” says Than.

“Given the current booming shipping industry, we also see a bright outlook for further development,” says Tran Quang Vu, General Director of Nam Trieu shipyard, which recently launched the first of its series of Diamond 53?s. “Business is going well for Nasico and we have firm orders up to 2010. We are now negotiating with Japanese and German clients for contracts to supply 8,700 to 30,000-tonne capacity cargo vessels and container ships with 900 to 1,100 teu” says Vu

Nasico is currently upgrading and expanding its facilities with a new 50,000 DWT slipway and a 300 tonne gantry crane. In addition, Nasico is focused on training its personnel and using advanced technologies to improve its efficiency. “We aim to shorten the construction time and further enhance our product quality through the use of advanced technologies, and specialised training for our labour force. To this end, we believe DNV will continue to play an important role for us ? and the industry as a whole,” says Vu.