Viet Nam shipbuilding looks promising

Construction on the first two ships in a 15 vessel deal between the UK-based Graig Shipping and Viet Nam?s shipbuilder Vinashin will begin soon at their Ha Long shipyard and Nam Trieu yard. The $336 million deal with Graig Shipping calls for the construction of 15 bulk carriers of 53,000dwt each and the first vessel is scheduled for completion in May 2006. The remaining 14 vessels will be completed at 5 monthly intervals.

This contract signals the start of a busy and successful year for Vinashin which has also received orders from Vinalines for 13 cargo vessels ranging from 6,500 to 22,500dwt. In addition, Vinashin is currently negotiating a deal for 16 container vessels of 5,000dwt each for the Danish Clipper Group and hopes to sign the contract in the next two months.

An export contract between Vinashin and the Dutch company Splithoff is also in the pipeline.

Vinashin aims to build seven million tonnes of ships by 2010, of which one million tonnes will be for export. By 2015, the company plans to build 10 million tonnes including three million tonnes for export. Vinashin has developed plans to co-operate closely with a number of overseas shipbuilders in order to improve its capabilities and competitiveness.

One of Vinashin?s most important strategies is its competitive pricing and, wherever possible, it uses Vietnamese made spare parts and equipment instead of imported items. Now, approximately 30 to 40% of the equipment and materials used in the shipyards are made in Viet Nam and Vinashin expects this figure to reach 60% by 2010. The company also has plans to upgrade the Ha Long, Bach Dang, Ben Kien, Nam Trieu and Sai Gon shipyards while it aims to build a modern shipyard in Dung Quat which will produce vessels up to 100,000dwt.

To develop its own indigenous designs, Vinashin has acquired the latest software from advanced ship building countries like Poland, Japan and Korea. In addition, the company plans to hire foreign experts to train its staff.