Bright prospects for maritime giant VIMC with Can Gio super port

Vietnam Maritime Corporation (VIMC) is poised for strong growth in 2025 following a highly successful 2024, driven by the government's in-principle approval of its Can Gio mega-port project in Ho Chi Minh City and a substantial increase in profits.

In the final months of the Year of the Dragon, despite a sluggish market, VIMC’s stock (UPCom:MVN) saw a dramatic rise, climbing from around VND32,000 to VND76,900 ($3.05) per share, more than doubled in just three months and surpassing its historical peak recorded in June 2024.

High expectations for Can Gio mega port

The impressive increase in the MVN stock came as the Can Gio International Transshipment Port project reached a key milestone. On January 16, 2025, Deputy Prime Minister Tran Hong Ha granted an in-principle approval to the project. The port will span 571 hectares on Go Con Cho Islet in Can Gio district, with an investment of no less than VND50 trillion ($1.99 billion).

In 2024, MVN experienced two significant stock price jumps, in May-June and later in the year, both tied to the Can Gio project. The first hike occurred when the project was incorporated into the revised national seaport system development plan for 2021-2030, with a vision for 2050. Can Gio was named one of three priority port projects in the updated plan, alongside Lach Huyen International Gateway Port in the northern city of Hai Phong and Cai Mep-Thi Vai Port in the southern province of Ba Ria-Vung Tau.

Designed to handle international container transshipment, Can Gio port will accommodate vessels with a capacity of up to 24,000 TEU (250,000 tons) or even larger. The groundbreaking ceremony is scheduled for May 30, 2025, pending government approval. Once completed, Can Gio will be the largest port in Vietnam, and Ho Chi Minh City aims to position it as a key transshipment hub in Southeast Asia, alongside major ports in Singapore and Malaysia.

The project is being spearheaded by a consortium of Saigon Newport Corporation (a VIMC member) and Terminal Investment Limited Holding S.A, a subsidiary of MSC, one of the world's largest shipping companies. Saigon Newport estimates the project’s total investment at $5.3 billion, with an expected capacity of 16.9 million TEUs. This will meet approximately 25% of Vietnam’s seaport traffic demand by 2030.

Nguyen Canh Tinh, CEO of VIMC, emphasized that the Can Gio port will significantly elevate Vietnam’s maritime industry, enabling it to compete with major global ports. With its strategic location, the port will not only reduce shipping times and domestic logistics costs but also open substantial opportunities for Vietnam to deepen its integration into the global supply chain.

Soaring profits

In addition to the positive developments surrounding the Can Gio super port, VIMC had a highly successful year. In 2024, the VIMC fleet handled 20 million tons of cargo, exceeding the year's target by 22%. In the seaport sector, throughput was estimated at 145 million tons, a 26% increase from the previous year, surpassing the year's plan by 17%.

The corporation reported a record revenue of over VND17 trillion ($675.14 million), a 33% increase compared to 2023. The primary driver was port operations and maritime services, which generated VND7.63 trillion in revenue, up 19% year-on-year. Shipping activities saw a slight increase to VND4.52 trillion, while sales revenue soared to VND4.31 trillion, more than 2.4 times the previous year's figure.

Additionally, other activities recorded an exceptional profit of more than VND1.34 trillion ($53.2 million), nearly four times the previous year's figure. During the year, VIMC earned VND722 billion from asset sales, compared to only VND83.6 billion in 2023. As a result, the company posted an after-tax profit of VND2.6 trillion ($103.26 million), an increase of 53%.

Despite a decline in fleet capacity, the CEO of VIMC noted that the company exceeded its shipping targets by increasing vessel chartering in various forms. In 2024, VIMC Lines, a subsidiary, expanded its operations and developed new services connecting Malaysia, Singapore, and Indonesia.

Along with progress on the Can Gio International Transshipment Port, the company is also nearing completion of container terminals No. 3 and No. 4 at Lach Huyen Port in Hai Phong. The construction of these terminals is progressing with tenders, equipment installations, and preparations for operations, scheduled for the first quarter of 2025.

Tinh stated that in 2025, VIMC would focus on implementing development projects such as Lach Huyen Port, Lien Chieu Port, and the Can Gio International Transshipment Port.

The firm also aims to rapidly develop the national fleet by forming partnerships with some of the largest shipping companies globally. This approach will allow VIMC to leverage its partners’ customer bases and markets while expanding its shipping network and enhancing its competitiveness.

The corporation plans to build a strong fleet not only to meet domestic transportation needs but also to serve international routes. This is a crucial step in ensuring that Vietnamese goods can reach global markets directly, without needing to be transshipped through other countries.

On the Unlisted Public Companies Market (UPCoM), MVN closed Tuesday at VND80,800 ($3.21) per share.