South Korea collaborates withVietnam in Shipbuilding Sector
The HD Hyundai Vietnam Shipbuilding (HVS) was established in the year 1996 as a joint venture between Hyundai Mipo Shipbuilding and Vietnam National Shipping Corporation and is acknowledged as the first successful project of overseas expansion of the Korean shipbuilding industry. Initially it came into being as a repair joint venture with Vietnam’s state-owned shipyard group and entered the shipbuilding business in 2008 after abandoning repair work in the year 2011. Over the years HVS acquired extensive knowledge and expertise in shipbuilding techniques through the repair and conversion of various types of vessels extending to offshore projects in extremely challenging marine environments. Presently HVS ranks fifth in the global shipbuilding industry with an order backlog of 1.24 million CGT and Hyundai Vietnam Shipbuilding comprises almost 74 % roughly equivalent to 924,000 CGT.
The HVS has the unique distinction of being acknowledged as Asia’s leading shipyard alongwith its parent company HD Hyundai Mipo of Korea. Its no small success that HVS entered the shipbuilding business in the year 2008 and has successfully constructed and delivered over 180 vessels so far .
Capacity Expansion
The HD Hyundai Vietnam Shipbuilding expansion plans include upgrading capacity to build 15 ships annually from the current maximum of 12 ships .The company’s Korean parent company has ambitions to expand to 23 ships a year by the year 2030 in order to acquire contracts for oil tankers and other ships for which it is locked in competition with Chinese rivals. The HD Hyundai Mipo Company is keen to improve the production efficiency of its subsidiary HD Hyundai Shipbuilding Company instead of merely adding more docks. The orders for the HD Hyundai subsidiary brings its cumulative total to 199 ships over a period of 15 years since entering the shipbuilding sector. The Hyundai Vietnam Shipbuilding has installed a 700-tonne Goliath crane to expand facilities and enhance productivity to achieve a construction capacity of 20 ships by the year 2025 .
Trade Profit and Local Employment Opportunities
In terms of international trade activities Vietnam continues to import ship components, machinery and raw materials to bolster its shipbuilding activities mostly from South Korea, Japan, China and countries in the European region. The HVS shared that its operating profit soared by more than five times to 398.4 billion won ($ 289.3 million) on a consolidated basis in the third quarter from a year earlier as sales grew 24.6 % to 6.2 trillion won. Shipbuilding President Lee Jong Chan boasted that the shipyards worth is around $350 million and currently employs 5,000 Vietnamese .
Vietnam other Shipbuilding Yards
The Vard Vung Tau shipyard was established as a green-field yard in Vietnam in the year 2006 and commenced manufacturing operations in 2008. The Vard Vung Tau shipyard claims to be a fully integrated facility capable of undertaking the entire process of shipbuilding from hull construction to final outfitting works. In the coastal province of Ba Ria-Vung Tau, Vietnam’s oil and gas hub , the Vard Vung Tau shipyard of Norwegian shipbuilder Vard is building 4 service operation vessels (SOVs) for North Star, a leading British infrastructure support company . The SOVs are a means of transport which can function as hotel, warehouse, workshop or temporary residence for technicians. These SOV’s usually carry out operations on the Dogger Bank offshore wind farm in the UK’s North Sea.
In the year 2022 Ha Long Shipbuilding Company entered into a contract with Damen Shipyards to construct 6 wind power service ships called commissioning service operation vessels (CSOVs). In the offshore wind power sector while SOV’s function as mother ships for wind turbine technicians performing maintenance and service work at offshore wind farms the CSOVs are designed to support commissioning works during the construction of offshore wind farms. At one time Vietnam’s state managed Shipbuilding Industry Corporation had carried out joint construction with Damen Group a Dutch defence, shipbuilding and engineering conglomerate company based in Gorinchem, Netherlands to construct vessels for Vietnam Fisheries Resources Surveillance, tugs, platform supply vessels for oil-gas drills, crane barges and multipurpose amphibious ship-landing crafts. Such is the extent of diverse ship construction ability of Vietnam. In the year 2022 it launched the construction of an impressive number of 28 ships and delivered 17 new vessels and repaired 34 vessels. Shipbuilding yards provide technical employment opportunities and bolster foreign exchange reserves. The HVS can be showcased as a successful model of cooperation between two countries in the commercial shipbuilding sector and same can be replicated in Pakistan with the maritime entities of Kingdom of Saudi Arabia, Turkiye , Vietnam and South Korea.
Authored by Nadir Mumtaz
Credit/Sources :
https://splash247.com/expansion-plans-laid-out-for-hd-hyundai-vietnam-shipbuilding/
https://www.kedglobal.com/us/shipping-shipbuilding/newsView/ked202410310013
https://www.kedglobal.com/us/shipping- shipbuilding/newsView/ked202410310013
https://www.businesskorea.co.kr/news/articleView.html?idxno=116522
https://www.hellenicshippingnews.com/hd-hyundai-may-nearly-double-shipbuilding-capacity-in-vietnam/
https://theinvestor.vn/vietnamshipbuilding-sector-comes-of-age-d5388.html
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