Opportunity for Vietnamese shipbuilding to dominate the 200 billion USD market

Vietnamese shipbuilding with diverse product lines and competitive labor costs will have many advantages in participating in the international market.

Shipbuilding market grows strongly

The latest report by Acumen Research and Consulting (ARC), a prestigious unit specializing in market research and international consulting, said that the global shipbuilding market is showing signs of strong growth in the coming time.

If in 2022, the value of global shipbuilding reached 147.2 billion USD, by 2024, this figure had reached 152.58 billion USD. It is forecasted that by 2032, after 10 years, this figure will be 226.9 billion USD.

Pha Rung Shipyard builds a 13,000DWT chemical tanker for a Korean shipowner. Photo: Ta Hai

Affirming the potential of the world shipbuilding market, Mr. Pham Hoai Chung, Chairman of the Board of Directors of the Shipbuilding Industry Corporation, said that by 2023, the world's maritime fleet will participate in cargo transportation of about 105,500 ships with a capacity of 100 GT or more, the average age of the ships is 22.2 years, of which oil tankers, dry bulk carriers and container ships account for 85%.

Total tonnage reached 2.27 billion deadweight tons. The average growth of the global fleet tonnage reached 4.9%/year in the period 2011-2021.

The size of the world shipbuilding market has grown strongly in recent years, reflected in the growth of new shipbuilding orders.

Global newbuilding orders represent 10% of the existing fleet, with order value up nearly 20% year-on-year. This reflects the trend towards more modern, larger-capacity newbuilding fleets and growing demand for greener, cleaner-fueled vessels.

"The number of new shipbuilding orders in 2023 is 4,029 ships equivalent to 237.3 million DWT," Mr. Chung informed.

Shifting trends and opportunities for Vietnamese shipbuilding

According to Mr. Chung, in the period 2024-2028, the shipbuilding market size is expected to increase by about 22.1 billion USD with an average growth rate of 3.95% / year and is expected to reach about 195 billion USD by 2030.

The main product types of the world shipbuilding market still include bulk carriers, oil tankers, container ships, cruise ships, ferries and other specialized ships. Of which, the oil tanker fleet increased by 3.4% over the same period in 2021; bulk carriers increased by 2.8%; and liquefied gas carriers increased by 5.0%.

With the ability to manufacture a variety of products, the Vietnamese shipbuilding industry has many opportunities to participate in the growing international shipbuilding market (In photo: Ha Long Shipyard builds a wind power service ship for a Dutch ship owner. Photo: Ta Hai).

While the global shipbuilding industry is shifting to Asia, European shipbuilding is declining, accounting for only 7% of total global orders in 2023, with factories mainly focusing on the cruise ship, luxury yacht and military ship segments.

Key markets such as container ships and bulk carriers are dominated by China and South Korea. This opens up opportunities for Vietnamese shipbuilders to participate in market segments and products that are suitable to their capabilities.

According to Deputy Director of Vietnam Maritime and Waterways Administration Hoang Hong Giang, the current shipbuilding capacity in Vietnam is about 3.5 million tons/year. Vietnam's shipbuilding industry ranks 7th in the world, accounting for 0.61% of the global shipbuilding market share.

With current capacity, Vietnam can participate in building new foreign ships reaching 2.7 to 2.8 million tons/year, accounting for 0.88% to 0.9% of the global shipbuilding market share by 2030.

Affirming that Vietnamese shipbuilding has full potential and advantages to participate in the international market, Mr. Pham Hoai Chung said that the Vietnamese shipbuilding industry has built most of the general cargo ships, bulk carriers, oil tankers, and car carriers; built a number of supporting industrial facilities to support the shipbuilding industry; and designed technology for a number of bulk cargo ships.

On the other hand, FDI shipbuilding enterprises in Vietnam have technological strengths, are developing well, and still have room for investment and expansion of production capacity. The workforce is young, skilled, easy to train, and labor costs are competitive compared to other countries with strong shipbuilding industries in the Asian region such as Korea, China, etc.

Source: https://www.baogiaothong.vn/co-hoi-de-dong-tau-viet-chiem-linh-thi-truong-200-ty-usd-192250317171800771.htm