
5 things you may not know about shipbuilding in Vietnam
Vietnam is nowadays renowned on the global economic system as one of the fast growing and dynamic economies world-wide. One of the industries that well represent this amazing progress is for sure the shipbuilding system and the whole marine industry in general. Thanks to well addressed government policies and good level of foreigner investment, the Vietnamese shipyards system has quickly developed in the last 20 years, bringing this country as one of the top leading shipbuilding nations on the global market. Today the capacities of the Vietnamese shipbuilding are well comparable to those of other developed countries in terms of workmanship, skills of engineers, level of technology and capacity to build complex ships.
Thanks also to other very important and strategic factors like a still competitive labour cost and a very open and foreign friendly economic system, building a new ship here can be extremely competitive for any ship Owner all around the world getting a very excellent balance of the quality/cost ratio.
Despite all what above, the Vietnamese shipbuilding system is still not well “advertised” and many people in this field all around the world are not aware of what is happening here. We hope with this blog to help spread globally more knowledge and awareness. We hope at same time to arouse a bit of curiosity on this subject inviting anyone has question to comment this post. We will answer all questions and report more if necessary.
In this post we will summarize briefly five of things that many people (even locally in Vietnam) don’t know about the local shipbuilding industry.
- Vietnam is ranked in the top 7 list of global shipbuilding countries.
Shipbuilding industry is a special industry. A report from Market Reports World indicates that activity in this area is on a booming trend. The global shipbuilding industry is valued at an estimated $167 billion in 2022 and is expected to experience a compound annual growth rate (CAGR) of 5.45% between here and 2028, estimated to be worth $229 billion by the end of the forecast period. Recently, Insider Monkey (USA) has made a list of Top 15 shipbuilding powers in the world, based on data from the United Nations Conference on Trade and Development (UNCTAD), which lists the percentage of ships built (compared to the global) in 2021 of countries. Notably, Vietnam is in 7th place, with the percentage of ships built in 2021 at 0.61%. Ranked in the upper positions are Germany (0.63%), Italy (0.82%), Philippines (1.06%), Japan (17.6%), South Korea (32.4%), and China (44.2%).
2. A very good maritime education system
Vietnam Maritime University (Hai Phong): established on 1956, Vietnam Maritime University (VMU) is today the most important education center for maritime experts, scientists providing to the national sea-ward economy. As of a rich history of near 70 years, the University has made great contributions to the transportation industry, national economy and defense. The University has been producing over 40,000 graduates; 35,000 maritime officers and seafarers working for the national sea-ward economy. Nowadays, the University is educating 44 undergraduate majors, 13 majors at master level and 8 majors at doctorate level with the total number of more than 15,000 students.
Nha Trang University – Faculty of Naval Architecture and Marine Engineering:The Faculty of Transportation Engineering (formerly the Faculty of Naval Architecture and Marine Engineering) was established in 2011. It includes three departments: the Naval Architecture Department, the Marine Engineering Department and the Automotive Engineering Department. The Faculty is responsible for training and researching in the area of Naval Architecture (such as Ship Design, Ship Building, Marine Engineering and Equipment) and Automotive Engineering, with a focus on Fishing Vessels. The Faculty also takes a part in graduate studies (master’s and doctorates) in the field of Naval Architecture (since 1990) and Automotive Engineering (since 2010). Currently, NTU is offering 6 doctoral, 16 master’s, and 37 undergraduate programs. The university now has a staff body of over 700 members with over 100 doctors and 300 masters, of which over 40% obtained their degrees in developed countries.
Ho Chi Minh City University of Transport – Faculty of Naval Architecture and Offshore Engineering:Ho Chi Minh University of Transport (UT-HCMC) directly under the Ministry of Transport is the largest multidisciplinary training university in transportation sector in the South of Vietnam. UT-HCMC is responsible for training human resources for the transportation sector, namely maritime, road, inland waterway and railway. The active and dynamic characteristics of the faculties has been promoted in the activities of scientific research, making contributions to the improvement of lecturers’ qualifications, linking the scientific research with the teaching activity of graduate and postgraduate levels. The faculty of Naval Architecture is one of the strategic units of this modern university, providing two main majors in Ship-Design and Ship-Building since the 1997. Besides that, the Faculty of Marine Engineering has provided Marine engineers since 1988 in the Southern Vietnam for the sea transport, ship building and other relevant areas.The University of Danang- Faculty of Transportation Mechanical Engineering- Division of Naval Architecture and Marine EngineeringThe specialized training program in Ship Engineering is designed to train ship engineers (Design, build, and repair ships) to meet the following requirements:
-Have solid knowledge of basic science, computational science, modern industry knowledge, specialized knowledge in the field of design, new building technology, ship repair technology and floating structures such as oil and gas rigs and floating docks.
-Ability to analyze and evaluate technical issues; Handle and solve practical problems related to Mechanical Engineering in general and Ship Engineering in particular.
-Ability to manage, organize, and work in groups through the implementation of thematic groups, scientific research, etc.Module of Smart watercraft formed from the staff of the Department of Applied Fluid Mechanics and Ship Engineering-the successor of the former department of Aero-hydro dynamics established in 1956.
The field of activity of the specialized group is training in the following areas:
– Ship engineering: design of common type and special purpose marine vehicles; ship theory; marine vehicle dynamics; marine control system; autonomous marine vehicles; equipment on shipboard; computer-aided for water vehicles engineering …
-Transportation Engineering: fluid engineering; real-time control systems; programming in applied fluid…
-Fluid Mechanics: flow dynamics; boundary layer and resistance; CFD…3. Very high number of shipyards
Vietnam has a coast extension of about 3500 km and all long it’s coast and with a very high number of active shipyards, the shipbuilding activity is well distributed from north to south.
Most of the main shipyards are grouped in four main categories:- Shipyards belonging to the Shipbuilding Industry Corporation (SBIC) the state-owned shipbuilding holding group
- Shipyards belonging to international shipbuilding groups
- Shipyards belonging to military shipyard/the General Department of Defense Industries of Ministry of Defense
- Other private and public investment shipyards
SBIC is the most important and biggest ship building reality in Vietnam which offers a wide variety of new building choice from merchant vessel to platform supply vessel to other custom made-to-order ships. Shipyards belonging to the group are distributed all around the coastline. Here below the list of main SBIC Group facilities:
Ha Long Shipyard: located in Ha Long, it’s specialized in dry cargo vessels up to 100,000 DWT, tankers up to 13,000 DWT, Container vessels with capacity up to 1100 TEU, special purpose vessels, high patrol-boats, sea and coastal barges.
Nam Trieu Shipbuilding Company (NASICO): located in Hai Phong, it’s specialized in dry cargo vessels up to 70,000 DWT, FSO 150,000 DWT, tankers up to 15,000 DWT, Container vessels with capacity up to 1700 TEU, special purpose vessels, high patrol-boats, sea and coastal barges.
Pha Rung Shipyard: located in Hai Phong, it’s specialized in dry cargo vessels up to 34,000DWT, tankers up to 13,000DWT. New building all kinds of tugs and technical service ships-Dredgers, Project service vessels, fishing boats up-to 2000HP, passenger vessels and luxury boats, floating cranes with lifting capacity of 600tons, offshore floating services.
Bach Dang Shipyard: located in Hai Phong, it’s specialized in dry cargo vessels up to 50,000DWT, tankers up to 50,000DWT, special purpose vessels, high patrol-boats, sea and coastal barges up to 20,000DWT
Song Cam Shipyard: located in Hai Phong, it’s specialized in dry cargo vessels up to 5,000DDWT, high patrol-boats, tugs, sea and coastal barges up to 8,000DWT.
Saigon Shipbuilding Industry (SSI): located in Ho Chi Minh City, specialized in dry cargo vessels up to 65,000DWT, container ship up to 600 TEU.
Cam Ranh Shipyard: located in Khanh Hoa province
Thinh Long Shipbuilding Company (THISICO): located in Nam Dinh province
The second group of shipyards is represented by those international shipbuilding groups that have invested here in Vietnam opening a local production site. Here below the list of the most important:Damen Group: in their Damen-Song Cam (located in Hai Phong) the well-known international shipbuilding group build in Vietnam tugs and workboats up to 60 meters long.
Hyundai Group: it’s the Owner of the Hyundai Vietnam Shipbuilding located in Nha Trang; it’s one of the busiest shipyards in Vietnam, specialized in cargo ships (mainly tankers and bulkers).
Piriou Group: this French group is present in Vietnam with a shipyard in Ho Chi Minh City. They are specialized in oceanic fishing vessels, tugs and offshore service vessels in aluminum.
VARD: this company belonging to the Italian Fincantieri Group, is present in Vietnam with a shipyard located in Vung Tau, specialized in offshore service vessels, expedition cruise vessels.
Finally in the third category there are other important shipyards, either private or public which have an important relevance in the Vietnamese shipbuilding activity. Here below a brief list:
Song Thu Corporation: it’s located in Da Nang and operates under Ministry of Defense of Vietnam; it’s core activity is to build specialized vessel such as patrol ship, fast crew and supply vessels, dredgers.
189 Shipbuilding Company: it’s located in Hai Phong, a military shipyard/the General Department of Defense Industries of Ministry of Defense, over 35 years of construction and development, specialized in Military vessels, Cruise vessels, Aluminium ferry, Yacht.
Hongha Shipbuilding Company: it’s located in Hai Phong, under the General Department of Defense Industries of Ministry of Defense, was established on 30/10/1965, specialized in Military vessels, Aluminium ferry, Tug boat, Cargo vessel.
Hai minh Shipyard (Military name: X51 Shipyard): it’s located in Ho Chi Minh City, under the General Department of Defense Industries of Ministry of Defense, was established on 26/10/1975, specialized in Military vessels, Tug boat, Fishing vessels, Aluminium vessels
Dung Quat Shipyard: located in the Quang Ngai province, it’s part of the Vietnam National Oil & Gas Group (PetroVietnam); it’s specialized mainly in tankers, Aframax size.located in the Quang Ngai province, it’s part of the Vietnam National Oil & Gas Group (PetroVietnam); it’s specialized mainly in tankers, Aframax size.
PV Shipyard: belonging to PetroVietnam group, it’s specialized in construction and repair of offshore rigs and structures (it’s located in Vung Tau).
Vuot Song: it’s a private shipyard located in Ho Chi Minh City; it’s specialized in tugs, local cruise ships, small fisheries.
Dai Duong Shipbuilding: it’s a private owned shipbuilding company located in Hai Phong; it’s specialized in container ships, general cargo and tugs.
LISEMCO: located in Hai Phong, it’s a private shipyard specialized in tugs and small cargo ships.
4. Excellent technological level
During the years 2000’s the idea to develop the shipbuilding industry making it a kind of model for the whole country’s economic development become one of the policies of the Vietnamese government. Huge investments were issued and it’s thanks to this fact that Vietnam rise at the 5th place of global shipbuilding nation as mentioned at above point 1.
Most of those investments have been used to increase and modernize the infrastructures and construction capacities of shipyards, skills and competence of workmanship and engineers.
Today most of the shipyards mentioned above are modern and well structured shipbuilding company with infrastructure, equipment and internal organization well aligned to the state of the art.
Some interesting data about the infrastructure:
- The biggest dry dock in Vietnam is at Hyundai-Vinashin Shipyard (Nha Trang) and measure 380 x 65 x 13 meters
- The longest slipway in Vietnam is in the Ha Long Shipyard (SBIC Group) with measure 350 x 48 meters
- The biggest gantry crane is in Hyunday-Vinashin with a SWL of 450 tons
- In Vietnam are present two syncro-lift: one at Damen Song Cam Shipyard (60 x 24 m, capacity 2500 ton); one in X51 Shipyard (in HCM city)
- The biggest dry-dock in Vietnam is in Nam Trieu Shipyard (SBIC Group) and measure 140 x 42m with a lifting capacity of 9600 ton.
5. Not only cargo ships
Often thinking of the shipbuilding industry in developing countries, people normally use to think and refer to simple cargo ships or anyway to low value ships. Actually that’s not the case of Vietnam where the variety of new construction typology is quite wide.
First of all it should underline the good capacity to build not only big steel vessels, but also small and high technical vessels in aluminum. Skills on working and welding the marine aluminum alloys today in Vietnam are fully comparable (sometimes even better better) to those of fully developed countries with a long shipyard tradition.
Furthermore, it’s true that the cargo ships (mainly tankers, bulkers and containers) cover the majority of the production (in tonnage) built in Vietnam yearly, but beside that there is about a 35% of production that is represented by more specialized ships, with a medium-high technological level high value. Some examples are listed below (this list is not comprehensive):
Vietnam has a good number of excellent maritime universities providing a very good technical and professional education to engineers, marine scientists, seafarers and future managers of the maritime industry in general. Here is a list of the most important.
Offshore Oil & Gas: the whole area of Vung Tau (south of Ho Chi Minh city) has got a strong development around the offshore oil & gas industry. In this area several shipyards are specialized in offshore rigs and offshore service vessel among them Vard, PV Shipyard and many others.
- Wind Farm Service Vessels: those are new king of small work boats used to support the operation on offshore wind turbines. Many people don’t know that Vietnam is one of the leading countries building this kind of vessels since few of the worldwide leader shipyards specialized in this kind of vessel are here: Piriou, Damen, Halong and 189.
The new Construction Service Operation Vessel (CSOV) 9020 for Ta San Shang Marine Co. Ltd (TSSM) build in Ha Long Shipyard, Vietnam.
- Tugs: tugs for many western ship-owners are built here in Vietnam; several shipyards are able to build very good products in particular Piriou, Damen, Song Thu and many others
- • Oceanic fisheries: oceanic fisheries, especially those including freezing systems and fish processing factories are quite complicated and high-tech vessels that require advanced technical skills for production. One of the world leader in big fisheries production (the French Group Piriou) has their production site for these kind of ships here in Vietnam (in Ho Chi Minh City)
- • Gas carriers: among the cargo ships, gas carriers are those for sure more complex to manage and build requiring a high level of technology, especially the refrigerated type; in Vietnam several shipyards of the SBIC Group build this kind of ships. For note only, the writer of this article has participated to the project of first fully refrigerated gas carrier in Vietnam in 2009 (LPG/LEG carrier)
- Aluminium fast ferries are commonly built in Vietnam: 189 and Hong Ha Shipyard is the most renowned producer, in the Nouth of Vietnam. Recently has been signed a contract to build a series of fast aluminium Catamaran ferries to service Con Dao island:
- Patrol and naval ships: despite the level of production is still very low (all for domestic application) the level of technology and complexity of new projects are exponentially increasing; being a maritime economy with strong interest in the region, Vietnam is slowing improving their tool to defend those interest
- Cruise ship: In recent years, in addition to luxury Cruise ships built and operated in the domestic market of Vietnam, there are also known high-end export cruise ships, one of which is Emerald Azzura. She is a cruise ship with a complex design, high technical and strict requirements in building standards. Ha Long shipyard has strictly followed the progress from studying design drawings, managing and supplying materials, technological steps in building vessels to ensure this ship will be delivered on schedule with high quality as requirement of class and ship owner.
- Yachts and pleasure boat: the production of this very specific construction here in Vietnam has started few years ago when some foreign international and local brands moved here the production (as for example Corsair Marine, Seawind, Triac Composite and Tan Vien Dong). Today the skill level especially in GRP and other composite materials has reached significant level in Vietnam and due to the increasing internal demand for pleasure boats, this industry is promising a fast development in the nearest future
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