The maritime transport economy and shipbuilding industry are considered sectors with extensive impact within the marine economic development strategies of countries with coastlines. Given this importance, over the years, the Party, the State, and various ministries have implemented numerous action plans to promote the development of the shipbuilding industry.
Shipbuilding Industry: Great Potential and Expanding Market
At the seminar “Green Transition in the Maritime and Offshore Wind Power Industry – Development Potential in Vietnam” held on the morning of March 6 as part of Vietship 2025 Exhibition, Dr. Pham Hoai Chung, Chairman of the Board of Members of the Vietnam Shipbuilding Industry Corporation (SBIC), emphasized that the shipbuilding industry is a large-scale industry capable of creating markets for many other industries in the national economy.
According to statistics, there are currently nearly 90 marine shipbuilding enterprises and over 400 inland waterway vessel construction facilities nationwide. Vietnam possesses a system of new shipbuilding and ship repair factories stretching from North to South, with diverse production capacity, sufficient to meet domestic demand and gradually penetrate international markets. Among them, SBIC units, Vietnam Oil and Gas Group (PVN), and several foreign-invested factories handle the majority of new shipbuilding demands.
The total new shipbuilding capacity currently reaches approximately 3.5 million DWT per year (excluding the Hyundai Vietnam joint venture). However, compared to countries with developed shipbuilding industries, Vietnam’s technological capacity, productivity, and competitiveness remain limited.
Potential of the Shipbuilding Industry
Significant Progress in the Shipbuilding Industry
According to Dr. Pham Hoai Chung, shipbuilding products in Vietnam are diverse and of high quality, meeting both domestic and international demands. The industry has made its mark with large-capacity vessels, specialized ships, and high-tech vessels. However, the sector is still developing broadly, focusing mainly on assembly and processing, lacking supporting industries, and has yet to master the technical and technological design stages—key factors to increase added value.
Since its establishment in 1996, the Vietnam Shipbuilding Industry Corporation (formerly Vinashin, now SBIC) has made remarkable advances. From only being able to build vessels under 3,000 DWT, the industry now manufactures bulk carriers of 65,000 DWT, container ships of 1,800 TEUs, oil tankers of 104,000 DWT, FSO floating storage units of 150,000 DWT, car carriers with a capacity of 4,900 vehicles, and chemical tankers of 13,000 DWT, among others.
Challenges and Recovery Opportunities
According to Decision 1224/QD-TTg dated July 26, 2013, SBIC currently has 8 subsidiaries located across the three regions of Vietnam, with 25 slipways, dry docks, and piers capable of launching ships ranging from 5,000 to 80,000 DWT. Between 2018 and 2023, SBIC’s actual production volume reached 0.8 to 1.2 million DWT per year, accounting for over 50% of the country’s shipbuilding capacity (excluding FDI enterprises). Vietnam currently ranks 6th to 7th worldwide in shipbuilding capacity, surpassing Finland—a country with a long-established shipbuilding tradition.
However, the industry faces issues such as “brain drain” and a shortage of investment capital for technology upgrades, causing many shipyards to operate below capacity with outdated technology, reducing their international competitiveness. Supporting industries like metallurgy and machinery manufacturing remain weak, forcing the majority of shipbuilding materials to be imported.
Challenges and Opportunities for the Recovery of Vietnam’s Shipbuilding Industry
Green Transition Trend and Future Expectations
In the context of the global maritime economy and shipping industry moving towards the net-zero emissions goal as committed in COP26, the green transition trend opens up significant opportunities for the shipbuilding sector. The Vietnamese government has implemented various supportive policies such as encouraging infrastructure investment, modernizing technology, and enhancing international cooperation.
As of December 2024, Vietnam’s fleet consists of 1,490 vessels with a total tonnage of 11.367 million tons and an average age of 17.4 years — a relatively high figure indicating the need for renewal. The orientation for 2030 aims to increase the fleet to 1,600–1,750 vessels, with a total tonnage of 17–18 million tons, including 1,200 vessels for maritime transport.
Forecasts estimate that between now and 2030, the demand for new builds and replacement ships will be about 4–5 million DWT. Meanwhile, the global shipbuilding market continues to grow strongly driven by demand for modern vessels using clean fuels. The total value of orders in 2023 exceeded 207 billion USD and is expected to reach 220.5 billion USD in 2024. During 2024–2028, the market will expand by an additional 22.1 billion USD with an average growth rate of 3.95% per year, reaching approximately 195 billion USD by 2030.
Vietnam is becoming an attractive destination for investment in this sector. However, to enhance competitiveness, effective government mechanisms and ministry support are necessary, alongside proactive efforts from enterprises in forming international linkages, attracting technology investments, and developing supporting industries.
According to Deputy Minister of Construction Nguyen Xuan Sang, to achieve an 8% economic growth target this year, it is essential to promote key industries such as maritime and shipbuilding. Currently, SBIC is undergoing a comprehensive restructuring process, expected to help the enterprise overcome debt burdens and revive the national shipbuilding industry.
Excerpt from Nhan Dan Newspaper: Competitive advantages and opportunities of Vietnam’s shipbuilding industry
