Vietnam renovates shipping fleet to gain supply chain independence
The country plans to remove their reliance on international lines with new and refurbished ships
Vietnam is seeking to enhance supply chain independence through a plan put forward by the Vietnam Logistics Business Association (VLA) to set up a new container shipping line.
It is expected to renovate the country’s old fleet and remove their reliance on international lines.
Currently, almost all shipping capacity and freight for goods transportation by containers to intercontinental routes are owned by foreign shipowners.
Vietnam has a container fleet of 48 ships with a total capacity of 39,519 teu. Three of these ships are more than 20 years old. Fifteen of these ships have tonnage of between 300 and 500 teu which can only run within the country.
The overhaul is a $1.5 billion investment from the VLA, which will build new ships, purchase new ones and rent and buy containers.
The new plan will be executed in two stages, the first of 3-5 years focussing on investment in ships to operate on intra-Asian routes. These routes represent more than 60% of the total dry goods volume for import and export.
The second phase will focus on larger container ships from Panamax and Post Panamax, for use on major intercontinental routes, such as Asia-America, Asia-Europe and East-West and beyond. This phase could last up to five years.