Vietnam's Ambitious Goal: World's Fourth Largest Shipbuilder in 2015

The state-run Vietnam Shipbuilding Industry Group (Vinashin Group) is determined to exert an all-out effort to turn the country into the world's fourth largest shipbuilder by 2015 from the current 11^th position.

 

The ambitious expansion plan was revealed by Vinashin Group President and CEO Pham Thanh Binh at a ceremony in Hanoi on July 8 to announce the Prime Minister's decision on the establishment of Vinashin Group and to mark the 10^th founding anniversary of the Vietnam Shipbuilding Industry Corporation (Vinashin), the predecessor of the Vinashin Group.

 

Newly appointed Deputy Prime Minister Truong Vinh Trong stressed at the ceremony that the Prime Ministerial decision to approve the formation of the Vinashin Group was based on proven ability and strong business and management development.

 

To realize this ambitious plan, Vinashin Group will expand existing shipyards and build additional ones to form major shipbuilding complexes throughout the country, said Binh.

 

Vinashin Group has planned to invest $3 billion from now until 2015 in its major investment projects, said the official.

 

The Vietnamese government has lent Vinashin Group all its $750-million global bond earnings to carry out its projects.

 

The group is also mobilizing billions of US dollars to develop supportive industries and apply state-of-the-art technologies, aiming to raise its locally sourced component ratio to 60 per cent by 2010 from the current 20 per cent.

 

Thanks to its growing capacity, Vinashin has raked in $4.5 billion from shipbuilding contracts for several years to come, notably an over $400-million contract to build 53,000-DWT ships for UK’s Graig Investments Group and a contract to build three 105,000-ton oil tankers for Vietnam’s PetroVietnam.

 

According to a corporate official, the expansion of the group also needs better managerial skills and expertise for its staff to catch up with the development growth.

 

Vinashin also has a plan to recruit foreign general directors, according to local media.

 

The group targets $1 billion revenues this year, doubling the amount it earned last year. The group will achieve an annual income of $3 billion by 2015.  

 

Vinashin Group, set up in 1995, has 93 affiliated companies.