VIMC embarks on strong recovery

The year 2022 continued to see the strong recovery of the maritime transport sector. The volume of freight transported by dry cargo ships, container ships and oil tankers grew well compared with previous years. The oil transport market resumed its strong growth in April, achieving a 10-year record. Following ups and downs due to the adverse impact of the Russia-Ukraine military conflict, the tanker market also recovered in late August with transport costs soaring across major shipping lines due to the increased demand for petroleum imports from Australia, New Zealand and increased export of refined oil products from the US and South Asia.

The maritime transport sector recovered strongly in 2022

To make the most of opportunities in this context, VIMC has increased measures to reduce costs and down time of cargo ships, while at the same time applying advanced production and business management methods. VIMC has developed seven additional container services at the Port of Hai Phong and the SP-SSA International Terminal (SSIT), Da Nang Port, Quy Nhon Port, and the Cai Lan International Container Terminal.

VIMC’s 2022 report outs the corporation’s consolidated revenue at an estimated VND15.041 trillion, equivalent to 120 percent of the annual plan. Of that sum, revenue from maritime transportation was estimated at VND4.619 trillion, exceeding the plan by 50 percent or VND1.544 trillion; revenue from seaport services reached an estimated VND6.613 trillion, equivalent to 102 percent of the plan; and revenue from shipping services VND2.173 trillion, exceeding the plan by 13 percent or VND242 billion. Consolidated profit was estimated at more than VND3.129 trillion, equivalent to 124 percent of the annual plan.

Opportunities for 2023

The industry and trade sector has set an eight-percent growth target for exports in 2023 while striving to maintain Vietnam’s trade surplus. This promises an increase in export orders and new opportunities for the maritime transport sector. However, many countries are facing high inflation and tend to reduce food exports due to concerns over food insecurity that may result from the Russia-Ukraine conflict. This will directly affect the demand for bulk cargo transportation and lead to a decrease in shipping revenues in 2023.

The container transport market is forecast to decline in 2023 due to sharp decreases in the transportation cost on Asia-America and Asia-Europe shipping lines as a result of the global economic recession. Moreover, the market will face an oversupply of ships due to increased shipbuilding. Changes in China’s Zero COVID policy and the Russia-Ukraine conflict will remain major risks to the dry cargo shipping cost. Moreover, a strong increase in China’s domestic coal production and the reduced demand for container shipping services as a result of global economic recession will continue to affect the cost of maritime transportation in the medium and long term.

In this context, to achieve the production and business targets set for 2023, VIMC General Director Nguyen Canh Tinh said the corporation will continue improving its ecosystem, focusing on developing deep water ports to establish service chains for container and bulk cargo ships. At the same time, VIMC will ensure the progress of major investment projects, such as container terminals 3 and 4 at Lach Huyen Port, the Can Gio International Transshipment Seaport, and the Lien Chieu Deepwater Port.