HD Hyundai Vietnam Shipbuilding Expands Output

HD Hyundai Vietnam Shipbuilding held an event marking its 30th anniversary on Oct. 15 at Ninh Hoa Square in Khanh Hoa Province in central Vietnam. (Source=HD Hyundai) HD Hyundai Vietnam Shipbuilding, which accounts for about 70% of Vietnam’s total ship orders, is further solidifying its status as a global production base as it marks its 30th anniversary. Since opening in 1996 as the Korean shipbuilding industry’s first overseas operation, it has transformed from a ship repair yard into Southeast Asia’s largest newbuilding shipyard, building a successful model for the Korean shipbuilding industry’s expansion abroad. On Oct. 15, HD Hyundai Vietnam Shipbuilding held an event marking its 30th anniversary in Khanh Hoa Province in central Vietnam, attended by about 7,000 people including employees and government officials, and shared its mid- to long-term growth vision. The core of the vision announced that day was the expansion of production capacity. The shipyard, which currently operates two docks on a 1 million-square-meter site, one with a capacity of 400,000 DWT and the other with a capacity of 200,000 DWT, plans to establish a system capable of building 23 ships annually by 2030 and up to 30 ships in the future. To expand production capacity, HD Hyundai Vietnam Shipbuilding will invest a total of $100 million. The investment will be focused on expanding docks and quay walls and increasing production facilities, and is expected to be used to maximize shipbuilding efficiency. This appears to reflect HD Hyundai’s strategic judgment to use its Vietnam base as a key axis for building medium-sized merchant ships while domestic shipyards focus on high-value-added vessels. An institutional foundation supporting the continuity of the business is also in place. After reaching an agreement with the Vietnamese authorities in April to extend the lease period for the production site by 20 years, the company has secured stable operations through 2066. With large-scale facility investment combined with the long-term securing of the site, its order-winning competitiveness in the global market is expected to strengthen further. HD Hyundai Vietnam Shipbuilding is also playing a pivotal role in the local economy. Last year, its revenue reached about $674.33 million, accounting for 8.2% of Khanh Hoa Province’s gross regional domestic product (GRDP). In terms of employment as well, it has created about 5,100 jobs in total, including in-house partner companies, maintaining close ties with the local community. Looking at actual delivery performance, as of the end of September this year, it had successfully built a total of 207 ships, including 140 product carriers and 67 bulk carriers. Its standing in the local shipbuilding industry is overwhelming, with more than 80% of Vietnam’s total ship delivery performance coming from this shipyard. At the commemorative event, Ju Won-ho, President of HD Hyundai Heavy Industries, assessed the past 30 years as a history of cooperation built together by the two countries. To mark its 30th anniversary, HD Hyundai Vietnam Shipbuilding delivered VND 500 million to Khanh Hoa Province as a regional development fund.