The demand for containerised freight transport in Asia is likely to rise substantially. The East Sea will also receive a large number of traders and tourists going by sea. In addition, air routes above the East Sea are likely to be set up. These are huge opportunities for Vietnam to develop ocean shipping to create a source of income to serve the industrialisation and modernisation of the nation.
With a coastline stretching over 3,260 km, Vietnam has great potential for developing ocean shipping and related maritime services. The country can find more than 100 locations suitable for seaport construction. From Vietnamese ports, ships can easily go through the Strait of Malacca to reach the Indian Ocean, the Middle East and Africa; through the Strait of Bass to the Pacific Ocean to the ports of Japan, Russia, South America and North America; and through the strait between the Philippines, Indonesia and Singapore to Australia and New Zealand. According to experts, two-thirds of global imports and exports are predicted to go through the East Sea in the next 5 - 10 years.
Currently, Vietnam has some 49 ports with 217 piers. Major ports are mainly located in Ho Chi Minh City, Hai Phong and Quang Ninh, handling over 60 percent of the country’s total sea freight. The volume of sea freight increases 15 percent a year on average. According to the report by the Vietnam Maritime Administration, in 2011, cargo throughput in Vietnamese seaports reached approximately 290 million tonnes. The cargo throughput handled by the Vietnamese seaport system is forecast at 500 - 600 million tonnes in 2015; 900 - 1,100 million tonnes in 2020, and 1,600 - 2,100 million tonnes in 2030.
In recent years, Vietnam's ship fleet has strongly expanded in both number and capacity, with an average annual growth rate of 20 percent. However, the current development is not commensurate with potential. Shipping companies in Vietnam have not won the initiative in the home market. Cargoes transported by Vietnamese companies are mainly foods like rice, sugar, pepper and seafood; consumer goods like footwear; and raw materials like iron ore.
The Vietnam seaport system development plan till 2020, with a vision to 2030, puts in place strategic changes in an effort to develop the Vietnamese seaport system to international standards, attract the attention of world-leading shipping companies and port operators, and develop the maritime industry of Vietnam.
In spite of these advantages, the ocean shipping industry also faces numerous difficulties. Hence, a majority of shipping companies, especially private ones, have a low profit margin and still confront difficulties in business operations, particularly the scarcity of freight sources. Not a few of their vessels carry cargo on one-way voyages or operate not fully loaded. Many sit at the dock inactive for months because of cargo shortage. A lot of shipping companies have gone bankrupt as their incomes cannot offset expenses and lending interest.
Port management model, according to experts, is still not very good. The inconsistency of State policies and legal documents puts a brake on logistics service development. Besides, the industry is also facing further difficulties since Vietnamese companies remain small in scale, lack experience and professionalism, and have narrow service coverage. The industry only offers a small piece of the supply chain and human resources currently fail to satisfy industry development needs.
To address these problems, the Vietnamese shipping industry needs to adopt urgent measures and solutions for 2012 and continue with its long-term development strategy.
Nhat Vy
Vietnamese
