Huge Potential of Shipbuilding Industry

 

According to the report of the Department of Planning and Investment of Ba Ria - Vung Tau province, 12 shipbuilding projects have a total registered capital of US$600 million. Among them, five projects are located inside industrial parks and seven projects are outside industrial parks. Six are operational while the rest are finalising investment procedures.

 

These projects will turn out and repair a variety of ships. Investors are very keen on building yachts and freighters. Two investors will manufacture pleasure boats, namely the Australian-invested Corair Park Co., Ltd in Long Son commune, Vung Tau city, and Jonhny & Son Yacht Production Co., Ltd. Both projects, with a total investment capital of US$30 million, are clearing production sites.

 

Although only six shipyards are in operation, their results reflect huge potential of the shipbuilding industry in the province. For instance, Strategic Marine shipyard in Dong Xuyen Industrial Park, Vung Tau city was inaugurated in early 2009 but it started building ships in 2007. The shipyard received a large number of orders, thus ensuring stable operations during the economic recession and incomes for 1,200 regular workers. The value of pending orders has reached AU$100 million, excluding a floating pier worth US$62 million.

 

Investors expect a wide market for repairing and building heavy-load ships when they invest in Ba Ria - Vung Tau province. Recently, a working group of American Navy Forces Industry School met with the People’s Committee of Ba Ria - Vung Tau province to discuss the shipbuilding industry. Following the dialogue with the provincial authorities, the guests visited several shipyards in the locality and they were very pleased with their trip and believed in a high growth of the provincial shipbuilding industry. “To develop this industry, projects must pledge and prove best measures to protect the environment. The provincial authorities and related organs will create all favourable conditions for domestic and international investors to do business in the province,” said Mr Tran Minh Sanh, Chairman of the People’s Committee.

 

At present, the provincial People’s Committee has planned Long son area in Vung Tau city for shipbuilding projects. In the coming time, more projects will start operating while several investors are registering to build shipyards in the province. It is expected that the shipbuilding industry will develop in commensuration with its potentiality to increase incomes for the province and diversify the local industry.