Marine shipping is likely to be the transport sector in Vietnam most severely hit by challenges in the post-WTO period, many leading economists have warned.
The country’s sea transport sector will suffer most because during its WTO negotiation rounds with trade partners, Vietnam committed to open the field for foreigners up to the third level of the four-layer rating, Duong Chi Dung, general director of Vietnam National Shipping Lines (Vinalines) has emphasized.
Domestic marine shipping companies will be exposed to tougher competition on home turf from foreign rivals, Dung highlighted, adding currently many foreign leading marine shipping companies including Danish Maersk, the world’s largest company in this field, are licensed to set up 100 per cent-foreign-invested companies in Vietnam.
Many other reputable shipping companies such as Japanese MOL, NYK and K’Lines also entered Vietnam, Dung pointed out. Meanwhile, well-known Singaporean PSA, Hutchinson of Hong Kong (China), Denmark APM and SSA of the US already established joint ventures with a local partner, Vinalines, to modernize and jointly exploit several key sea ports in Vietnam, he added.
To minimize adverse outside impacts, Vietnam should work out a roadmap to form a shipping conglomerate in 2007, Dung noted, adding Vinalines will diversify its business types and encourage multi-lateral ownership, under which exploitation and management of marine shipping and sea ports will pay a vital role.
Vinalines will build special purpose ships such as container vessels of 50,000-DWT and large sea liners of about 150,000-DWT that can ship to Europe and America.
Vinalines will improve service quality in the race with foreign counterparts.
Dung also pointed out weaknesses of Vietnam’s national shipping lines, including unsuitably located sea and deep-water ports, and wharves to dismantle huge vessels.
Under WTO commitments, foreign investors who desire to invest in the sector in Vietnam are required to participate by forming joint ventures with allowed holding ratios of 49 per cent.
Vietnam is home to 266 sea ports scattered over 24 provinces and cities. Of which, there are only nine large-scale quays positioned to receive ships of 50,000 DWT.
About 200 million tons of cargo is expected to be shipped via Vietnam’s sea ports, which may reach 350 million tons of goods in the coming years.
In the first ten months of this year, Vinalines posted total revenues of VND9 trillion ($562.5 million) and about 33 million tons of cargo shipped nationwide.
Of that revenue, VND4 trillion came from direct transportation, VND1 trillion from shipping via wharves and VND500 billion worth of other services.
Pioneer Online
Vietnamese
