More than 100 renowned players in the shipbuilding industry from countries including the United States, the United Kingdom, Singapore, Thailand, and Japan made their presence felt at the Vietnam Marine and Offshore Expo 2023 in Hanoi from July 5 to 7.

This marks an important watershed in the development of Vietnam’s shipbuilding industry, as it attests to the immense development potential of the country’s maritime sector.

By presenting innovative technologies and professional expertise on marine and shipbuilding technology, the exhibition aims to provide investors and businesses with updated information on the opportunities that could further propel the sector’s development.

Yacht-related services are heating up, following a sharp rise in foreign visitors

Hoang Hung, deputy chairman and general secretary of the Vietnam Shipbuilding Industry Association, noted that the nation’s shipbuilding industry has encountered multiple hardships during its development process.

For instance, the impacts of the global economic recession and specific difficulties in the local economy in the early 2000s slowed down the sector's growth, leading many shipbuilders to transition into other fields of production, with some even going bankrupt.

Currently, the local shipbuilding industry is still facing a host of challenges related to capital access, manpower, and materials.

Kenny Yong, CEO of Fireworks Trade Media, however, believes that Vietnam's shipbuilding industry has emerged as a competitive force that should not be underestimated, demonstrating remarkable growth, resilience, and adaptability.

“With its long coastline, skilled workforce, and strategic geographical location, Vietnam has a unique advantage in seizing the opportunities presented by the global maritime industry,” said Yong.

With abounding potential for sea-based tourism, plus the growing middle class, Vietnam is deemed as having rosy prospects for the yacht industry’s development.

This is particularly significant given the fact that the global yacht industry is developing strongly, and many order books are saturated until 2026-2027.

Danang, for instance, has great advantages in terms of yacht-related services thanks to its geographical position. This is expected to create new motivation to drive the city’s development.

According to a report by the Transport Development and Strategy Institute, Danang is home to 19 priority investment ventures in the yachting industry and services sector.

The total investment value of the projects approximates $298 million, all coming from non-state sources. The projects involve the yacht building and repair industry, associated supporting sectors, commercial services, as well as port and travel infrastructure.

Revenue from the yacht industry and marina services is divided into two phases. Over the 2022-2025 period, the estimated revenue comes to $17.4 million a year, and for the 2026-2030 period, the figure is expected to reach $43.4 million.

Currently, the world's shipping fleets are expected to feature many ships originating from Vietnam. This attests to the real capacity of the domestic shipbuilding industry.

For more than a year now, local shipbuilders have the hope of thriving again and acquiring large shipbuilding contracts.

For instance, at the end of last year, Pha Rung Shipyard under the Shipbuilding Industry Corporation inked a contract to build a new series of five specialised 13,000-tonne oil and chemical tankers to export to South Korea.

The contract will be implemented over three years, with three ships being built this year. The remaining two will be completed and handed over in 2025.