Vietnam’s ports handled 30 million TEUs and Singapore reaching 41.12 million TEUs in 2024
Shipping containers are shown at the Terminal 1 Container Terminal at the Port of Los Angeles in Wilmington, California, the United States, on Oct 17, 2024. (Photo: Reuters)
Vietnam Maritime Corp, undaunted by potential tariffs from the incoming Trump administration that risk crimping the nation’s trade, forecasts revenue to more than triple in the next decade, General Director Nguyen Canh Tinh said.
The state-owned shipping, logistics and seaports company, previously known as Vietnam National Shipping Lines or Vinalines, plans to expand its fleet by 20% annually in the next five years, Tinh said in an interview in Hanoi. It also looks to upgrade harbours to accommodate larger vessels and increase global shipping routes.
The conglomerate currently manages a fleet of 48 ships, including seven container vessels. The world’s largest container liner, Switzerland-based MSC, operates around 860 cargo ships.
The Hanoi-based company’s revenue is expected to reach US$3 billion in the next 10 years from about $800 million targeted for 2025, he said.
Vietnam Maritime is seeking a strategic partner with maritime industry expertise to help with expansion plans, Tinh said. VIMC later this year will submit a proposal to officials to cut the government’s stake to 65% from nearly 100%, he added.
Then-U.S. President Donald Trump wears a hardhat as he tours the Granite City Works hot strip steel mill in Granite City, Illinois, the United States, on July 26, 2018. (File photo: Reuters)
The waters around Southeast Asia are key thoroughfares facilitating world trade, specifically between China and the West. Vietnam’s seaports handled 30 million 20-foot equivalent units (TEUs) worth of goods last year, compared with 10.2 million in 2014, Tinh said. Neighbouring Singapore saw a record 41.12 million TEUs in containers throughput in 2024, with 90% of those goods headed on to other destinations. Shanghai was the world’s busiest port last year, with container throughput exceeding 50 million TEUs.
The volume of containers passing through Vietnamese ports is expected to continue growing at about 4% annually, reflecting an incessant flow of foreign investments into the country, many from global suppliers, analysts Le Anh Son and Vu Manh Tuan at VPBank Securities wrote in a December note. An anticipated surge in cargo demand ahead of possible tariffs could trigger an increase in freight rates.
Vietnam Maritime has stakes in 16 seaport operators with more than 80 wharves — 26% of the nation’s total docks, according to its website. Its fleet accounts for 25% of the nation’s annual shipping capacity.
The company’s growth blueprint includes improving seaport infrastructure, Tinh said.
Prime Minister Pham Minh Chinh just signed off on a transit port project in Ho Chi Minh’s City’s coastal suburb of Can Gio. VIMC has proposed developing the $4.5 billion project, though the government has yet to choose an investor.
Containers of Dinh Vu port are seen from a seaplane of Hai Au Aviation. (File photo: Reuters)
Vietnam plans an expansion of its nationwide seaport system by 2030 that will need about 351.5 trillion dong (copy3.8 billion) in investments, according to a decision signed by Deputy Prime Minister Tran Hong Ha.
Vietnam Maritime also looks to expand its international routes, including in Northeast Asia and the Middle East, and to China, Vietnam’s largest trade partner. While most of the cargo between China and Vietnam now moves across land, Tinh said water routes will be more attractive to companies in the future because they can reduce logistics costs.
VIMC recorded a pretax profit of 3.5 trillion dong in 2024, surging 65% from a year earlier, it said in an emailed statement. Total revenue rose 30% to 18.2 trillion dong. Port cargo volume jumped 27%, reaching 145 million tons for the year. The company forecasts revenue to rise 12% to 20.3 trillion dong this year.
Vietnam Maritime was at risk of bankruptcy in 2013 as it faced total liabilities of more than 67.5 trillion dong and accumulated losses of over 23 trillion dong.
After more than 10 years of restructuring, VIMC erased its accumulated losses in the third quarter of 2023.
