Vietnam has significant potential to develop a strong domestic shipbuilding industry and secure a firm position in the global market. According to the International Maritime Organization (IMO), over 90% of global trade is transported by sea. With the Vietnamese government targeting 12% trade growth and aiming for $1 trillion in total trade turnover in the coming years, expanding the country’s shipping fleet and shipbuilding industry is crucial for economic sustainability.

At the 10th VietShip International Exhibition on Shipbuilding and Offshore Technology (VietShip 2025), held at the National Conference Center in Hanoi on March 5, Deputy Minister of Construction Nguyen Xuan Sang emphasized the importance of maritime transport and shipbuilding in achieving Vietnam’s economic growth target of 8% this year.

Current Landscape and Growth Prospects

Vietnam currently has 88 shipbuilding enterprises and 411 facilities specializing in inland waterway vessels. The country’s shipbuilding capacity is approximately 3.5 million tons per year, representing 0.61% of the global market share and employing over 80,000 workers (VMA, 2024).

Among key players, the Shipbuilding Industry Corporation (SBIC) operates eight shipyards with an annual new building capacity of 1.3 million tons and a repair capacity of 654,000 tons. The company builds around 68 vessels and services 304 ships annually.

Despite these achievements, Vietnam’s fleet is primarily suited for domestic coastal shipping and short-haul international routes. Of the 1,490 registered vessels, over 73% have a gross tonnage below 5,000 tons. The furthest operational route currently reaches India. This highlights the need for further expansion in shipbuilding capacity to compete in the global shipping market.

The Vietnam Maritime Administration (VMA) projects that the country’s shipbuilding capacity for international customers could reach 2.7–2.8 million tons per year by 2030, increasing its global market share to 0.88–0.9%.

Challenges and Barriers to Development

Despite these opportunities, Vietnam’s shipbuilding sector faces challenges such as:

• Outdated Production Technology: Limited automation and reliance on manual labor lower efficiency.
• Infrastructure Limitations: There are only 19 docks/slipways nationwide for shipbuilding and repairs between 5,000 to 400,000 tons.
• Lack of Local Supply Chain: The industry depends on imported materials, raising production costs.
• Financial Constraints: Insufficient investment in shipbuilding infrastructure affects production capacity.

Dr. Pham Hoai Chung, Chairman of SBIC, noted that even the country’s largest shipbuilder is operating at only 50–60% of its designed capacity due to these limitations.

Strategic Solutions and Future Directions

To strengthen the industry, experts recommend:

• State-led Initiatives: The government should offer preferential loans, tax incentives, and policy support to attract investment.
• Dedicated Shipbuilding Zones: Designating areas in Hai Phong, Quang Ninh, and Ba Ria-Vung Tau for shipbuilding can optimize resource allocation.
• Market Specialization: While China dominates large-vessel production, and South Korea and Japan specialize in high-tech ships, Vietnam could focus on mid-sized and smaller cargo vessels to carve out a competitive niche.
• Green Shipbuilding: Global trends indicate a shift towards sustainable, clean-fuel-powered vessels by 2030. Vietnam should align its policies to support the development of environmentally friendly ships.

According to Mr. Sivert Skårn, General Director of Vard Vung Tau, the company has expanded its shipyard operations in Vietnam due to confidence in the country’s future as a shipbuilding hub. However, he emphasized that adopting advanced technology requires government coordination and investment incentives to attract foreign expertise.

With proper investment and strategic planning, Vietnam has the potential to become a key player in the global shipbuilding industry, increasing its export share while supporting domestic maritime transport growth.

Source: VietShip 2025, Vietnam Maritime Administration (VMA), SBIC, International Maritime Organization (IMO), Vard Vung Tau