Vinashin reports strong growth

The Viet Nam Shipbuilding Industry Group (Vinashin) has earned a revenue of VND5.1 trillion ($318.7 million) in the first quarter of the year, an increase of 108% year-on-year.

The nation?s largest shipbuilder attributed the business success to its strategy of progressive re-investment which helped to enhance its production capacity.

In the first three months of the year, Vinashin built as many as 50 ocean going vessels ranging from 4,000 DWT to 105,000 DWT as well as dozens of smaller vessels for either private use or commercial use. “This quarter we recorded our highest ever growth rate with gains in both production capacity and productivity,” said Vinashin CEO Pham Thanh Binh.

The company, which has 40 subsidiaries, recruited an additional 7,000 workers in the first quarter. It is now one of Viet Nam?s biggest employers with a total workforce of 78,500. So far Vinashin, which targets revenue of over VND40 trillion for the entire year, has secured contracts with both domestic and foreign clients worth $12 billion.

During the shipping exhibition, Vietship, last month, the Ha Noi-based company signed 22 contracts worth $2 billion. The contracts covered shipbuilding, maritime transport, developing ancillary industries, as well as financing and insurance.

Noteworthy deals include a contract to build a 16,800 DWT cement carrying vessel for KGJS of Norway, a contract to build sixteen 24,500 DWT bulk carriers for Jebsens also of Norway, and a contract to build a 11,000 DWT cargo ship for Kanematsu of Japan.

According to Vinashin, maritime-related industries represent 53-55% of Viet Nam?s gross domestic product, and around 60% of total export turnover. The company is now the fifth largest shipbuilder in the world, according to Fairplay, a UK-based international shipping magazine.