Vietnam Maritime Corp (VIMC), a state-controlled shipping group, plans to enhance its competitiveness by acquiring more containerships and building more inland depots.
The company intends to acquire four box ships ranging from 1,700 to 2,200 teu this year, which would increase its fleet size to at least 13,000 teu.
This would account for 30% of all Vietnamese-owned container vessels. VIMC is also seeking to partner with investors to develop inland container depots and distribution and logistics centers in areas such as Haiphong, Hanoi, Danang, Quy Nhon, and Ho Chi Minh City.
VIMC’s strategy is in line with the Vietnamese government’s objective of using locally-owned ships to transport the country’s exports of manufactured and semi-finished goods, as Vietnam continues to attract manufacturers away from China.
The move follows trade activity growth in Vietnam, which has been five times that of competitors in the past year, as more businesses diversify away from China amid geopolitical tensions and Covid-related lockdowns.
However, market analysts caution that Vietnamese-owned fleets are relatively small and cannot compete with larger operators. VIMC’s fleet has an average age of 22 years and needs modernization to remain competitive.
Last year, the company’s net profit dropped by 23% YoY to VND2.54trn ($107.5m) due to surging operating costs amid inflation. This year, VIMC’s director-general, Nguyen Canh Tinh, has reduced the profit target by 24% compared to 2022’s figure, anticipating a more challenging market.