Vosco and its calculated investment plan amidst the tariff storm - Vietnam National Shipping Lines

Vosco 'set sail' amid stormy circumstances

In less than a week, Vietnam Maritime Transport Joint Stock Company (Vosco) will receive delivery of the Sunlight ship, built in Japan since 2013, with capital support from Vietnam Maritime Commercial Joint Stock Bank (MSB).

Previously, at the end of January 2025, Vosco received the delivery of the Supramax-sized ship Starlight in Japan. The ship made its first voyage transporting goods from China to Vietnam from early February 2025.

These are the first steps in the “strong transformation” plan to regain Vosco’s position, through fleet development, aiming to manage and operate specialized, modern vessels, despite the global trade context witnessing complex and unpredictable developments.

At the recent 2025 annual general meeting of shareholders, Mr. Nguyen Quang Minh, General Director of Vosco, said that the company's fleet will be supplemented with 4-5 new ships this year, in addition to continuing to lease a number of ships from partners for exploitation.

A healthy financial picture with more than VND 1,300 billion in cash, completely debt-free since 2011, is a factor that helps Vosco have many advantages to implement the fleet expansion plan. Mr. Minh said that since 2024, the company has escaped the group 5 debt list, thereby many banks such as BIDV, HSBC, Fubon are ready to lend capital.

However, the total investment capital to expand Vosco's fleet could be up to more than 10 trillion VND, four times higher than the company's total assets. In order to balance its financial capacity, Vosco decided to add the option of buying back ships under construction from shipowners or buying old ships, in addition to the option of building new ships, both optimizing costs and ensuring early receipt of ships for operation.

The company will also restructure its investments to optimize efficiency, including divesting all capital from SSV Joint Stock Company, which is operating two pairs of mooring buoys in the Saigon River area due to lack of growth potential, and dissolving Vosco Crew Supply Company Limited due to not meeting the criteria for providing labor export services.

*Vosco acquired the Sunlight ship with capital support from MSB Bank. Photo: Vosco*

In addition, Mr. Minh said the company applies the accelerated depreciation method for operating ships to quickly have cash flow for reinvestment.

This was also the reason for Vosco's loss of about VND54 billion in the first quarter of 2025, in addition to the general slowdown of the shipping industry due to the long holiday. However, the company quickly returned to profit from March 2025, he added.

Mr. Minh predicts that the situation will be more positive in the second quarter of 2025 when importers are actively purchasing goods, taking advantage of the period when the US temporarily suspends reciprocal tariffs. In addition, some of Vosco's ships, thanks to the accelerated depreciation calculation plan, will be fully depreciated in 2025, which is also a factor that ensures profits for the company in the coming period.

Flexible management, ready to catch the wave

It can be seen that Vosco is betting on the future through a carefully calculated investment plan, a move that reflects initiative and courage in difficult times. But, will this 'calculation' bring about the expected results?

Geopolitical instability and escalating competition between major powers, leading to difficulties and disruptions in supply chains, are the direct causes leading to changes in traditional transportation routes, affecting production, consumption and import and export, causing Vosco to propose a relatively cautious plan for 2025.

Specifically, this year, Vosco sets a revenue target of 6 trillion VND, a slight decrease compared to 2024. Pre-tax profit reaches 376 billion VND, equal to 90% of the results achieved last year.

On the other hand, unpredictable developments, especially the imposition of reciprocal tariffs by the US, also raise big questions about the long-term growth prospects of the shipping industry in general and the risks of Vosco's determination to develop its fleet.

*Mr. Hoang Long, Chairman of Vosco Board of Directors at the 2025 annual shareholders' meeting. Photo: Vosco*

Commenting on this, Mr. Hoang Long, Chairman of Vosco Board of Directors, assessed that the US tariff policy will only cause difficulties for the large container fleet operating on the US-China route in the short term. Therefore, Vosco has not suffered a major impact at this stage.

On the contrary, the company also sees some new opportunities, such as dry cargo shipping at the beginning of the year is forecast to still be difficult but can take advantage of countries increasing imports and exports to new partners due to the influence of the US market.

For example, dry bulk vessels could benefit as China increases its imports of grain and coal from alternative markets such as Indonesia and South Africa. Or, two-way trade between China and India is likely to increase, so dry bulk vessels “have both outbound and inbound routes.”

However, Mr. Long also acknowledged that complex developments could lead to multi-dimensional impacts, such as a decline in production and consumption, causing a decline in import and export demand, affecting the shipping industry.

Responding to these complex developments, Vosco has focused on monitoring trade developments and analyzing opportunities to report to Vietnam National Shipping Lines (VIMC) since US President Donald Trump announced the reciprocal tariffs, thereby proposing many strategic solutions.

For example, Vosco's management has recently directed its well-qualified vessels, capable of operating on long-haul routes focusing on exploiting the West African region, towards transporting mineral ores and agricultural products, goods that may be "hot" in the near future.

In parallel, as part of the “strong transformation” plan, Vosco will strengthen fuel management, optimize operational efficiency, seek overlapping contracts to minimize costs, in addition to promoting digitalization, applying kaizen tools and other solutions to improve labor productivity.

Vosco's governance also continues to be improved through reviewing, amending and supplementing a number of internal regulations to increase the limit of decentralization from the Board of Directors to the General Director, from the General Director to the Deputy General Director, heads of specialized departments and branch directors.

Vietnam Ocean Shipping Joint Stock Company (VOSCO)

Source: https://vimc.co/vosco-va-ke-hoach-dau-tu-day-toan-tinh-giua-tam-bao-thue-quan/