Hyundai Vietnam Shipbuilding pens deal for product carrier pair

Hyundai Vietnam Shipbuilding, a subsidiary of HD Hyundai’s shipbuilding division, has secured orders for two product carriers from an undisclosed African-based shipping company, marking a total of 199 vessels ordered in the shipbuilding business since its inception 15 years ago.

The company was established in 1996 as a joint venture between Hyundai Mipo Shipbuilding and Vietnam National Shipping Corporation, and it initially engaged in repair and conversion projects before transitioning to new shipbuilding ventures in the late 2000s.

Since then, Hyundai Vietnam Shipbuilding has delivered a total of 157 ships, starting with the 56,000 DWT bulk carrier “E.R. Bergamo” in 2009, and has solidified its position as the largest shipyard in Southeast Asia. It is also considered the first and most successful case of overseas expansion in the Korean shipbuilding industry.

This achievement was made possible by the presence of around 60 engineers dispatched from Hyundai Mipo Shipbuilding, who have implemented the same safety and quality management system as the parent company throughout the production process.

Vietnam ranks fifth in the global shipbuilding industry with an order backlog of 1.24 million CGT and Hyundai Vietnam Shipbuilding accounts for 74.4% of this figure, equivalent to 924,000 CGT. Vietnam also plays a crucial role in the shipbuilding industry, having delivered 805,000 CGT (80.5%) out of the 369,000 CGT of ships handed over last year.

With a sales target of $543.8 million and plans to deliver a total of 13 ships this year, Hyundai Vietnam Shipbuilding installed a 700-ton Goliath crane last year and aims to further expand facilities and enhance productivity to achieve a construction capacity of 20 ships by 2025.

“This achievement was made possible through the continuous transfer of technology and know-how from Hyundai Mipo Shipbuilding, as well as the high educational aspirations and diligence of the local Vietnamese workers. With the mindset of representing the Korean shipbuilding industry, all of our employees will strive together with one heart and one mind to make consistent contributions to the local community,” Jong-chan Lee, president of Hyundai Vietnam Shipbuilding, said.