Vietnam’s shipbuilding industry is set for major growth as demand for new ships rises at home and abroad, with the country aiming to boost its market share and modernize its production capabilities.
Vietnam currently ranks seventh in the global shipbuilding market, holding 0.61% of total output. With global demand expected to grow steadily, the Southeast Asian nation is in a strong position to expand its footprint.
According to the Vietnam Maritime and Inland Waterways Administration, the country’s shipping fleet will grow to 1,750 vessels by 2030, with a combined capacity of 18 million tonnes. This growth opens up new opportunities for Vietnam’s domestic shipbuilders.
Rising Demand at Home and Worldwide
Vietnam’s local demand for new ships is estimated at 16 to 41 vessels per year. This equates to roughly 0.7 to 0.8 million tonnes annually, including replacements for old ships and new builds for expanding fleets.
Globally, ship demand is forecast to rise by 3.95% each year, reaching 5,284 ships with a combined tonnage of 311.2 million tonnes annually by 2030. This presents an opportunity for Vietnam to increase its participation in international ship exports.
With a current shipbuilding capacity of around 3.5 million tonnes annually, Vietnam is well-equipped to contribute to the rising global need.
Export Potential on the Rise
Deputy Director Hoàng Hồng Giang of the Vietnam Maritime and Inland Waterways Administration said Vietnam could produce up to 2.8 million tonnes of ships annually for export by 2030. This would raise the country’s share of the global market to nearly 0.9%.
Today, Vietnam is home to 88 shipbuilding firms and 411 facilities that produce inland waterway vessels. Of these, about 120 specialize in building and repairing ships weighing over 1,000 tonnes.
Vietnam is also capable of producing various vessel types. These include cargo ships over 5,000 DWT (deadweight tonnage), tugboats, patrol boats, rescue ships, aluminum-hulled fast vessels, and service ships for both local use and export.
Challenges Facing the Industry
Despite strong growth potential, Vietnam’s shipbuilding industry faces major challenges—especially in meeting green energy and emission standards.
Most shipyards still lack the infrastructure to build eco-friendly vessels. There are also limited tax breaks or financial incentives to support companies transitioning to green energy.
Phạm Hoài Chung, chairman of the Shipbuilding Industry Corporation (SBIC), noted that clean energy trends are already affecting the global shipbuilding sector. Companies that do not adapt risk falling behind.
Need for Modernization
Vietnam’s shipbuilding industry has grown mostly through assembly and processing. This limits the added value it can bring to international customers. Many local shipyards still use outdated equipment and have not invested in new technology or modern ship designs.
Without improvements in technology and prototype development, Vietnam risks losing competitiveness in the global market.
However, some progress is being made. Supporting industries for shipbuilding are starting to develop, and partnerships with foreign companies are becoming more common.
Boost from Foreign Investment
Foreign investors, especially from countries with advanced shipbuilding technologies, are increasing their presence in Vietnam. This offers local firms access to new tools, designs, and practices.
By working with global partners, Vietnam’s shipbuilders can gain valuable skills and upgrade their production standards.
Chung said Vietnam’s industry should take advantage of its prime location, low labor costs, and the steady flow of foreign investment to build up its capabilities.
State Support and Strategic Goals
The Vietnam Maritime Corporation (VIMC) is focusing on fleet upgrades, including building new ships. According to Hoàng Long, head of VIMC’s Transport Department, the company is working with SBIC to develop specialized ships such as bulk carriers and container vessels.
Vietnam’s government sees shipbuilding as a priority sector. National policies offer tax and land-use incentives to encourage investment. Authorities are also reviewing existing rules to ensure they align with the country’s economic growth and green development goals.
Looking Ahead to 2030
Deputy Minister of Construction Nguyễn Xuân Sang said the shipbuilding sector plays a key role in helping Vietnam reach its economic goals. The National Assembly has set a GDP growth target of 8% by 2025, with maritime industries expected to contribute significantly.
By 2030, marine-based industries could account for 10% of national GDP. Coastal regions are expected to generate up to 70% of the country’s total output. Sustainable practices, in line with global standards, will be key in reaching these goals.
