Hyundai Vietnam joint venture to spend $100 mln on shipbuilding capacity expansion

Hyundai Vietnam Shipbuilding Co., Ltd. (HVS), a joint venture between South Korea and Vietnam, is set to invest an extra $100 million in expanding its shipbuilding capacity in Vietnam.

Shipbuilding Industry Corporation (SBIC), the Vietnamese partner in the joint venture, disclosed the information at a recent working session between Deputy Minister of Construction Nguyen Xuan Sang and HVS.

HVS, headquartered in the south-central province of Khanh Hoa, was established in 1996 as a joint venture between South Korea’s HD Hyundai Group and SBIC.

The company initially focused on ship repair. In 2028, it transitioned to full-scale shipbuilding and has since seen strong growth.

To meet the growing market demand, HVS plans to continue investing in product quality improvement and diversifying its portfolio with environmentally friendly dual-fuel vessels, container ships, car carriers, multipurpose vessels, and maritime support ships.

Between 2008 and 2024, HVS invested approximately $322 million in shipbuilding infrastructure and equipment, raising its annual capacity from 800,000 DWT to 950,000 DWT, equivalent to 15-16 ships from 50,000 DWT to 115,000 DWT per year.

The company aims to further expand infrastructure such as workshops and ports to increase capacity by 50% (up to 23 ships per year) by 2030, with a projected investment of $100 million.

Le Hong Phuong, deputy head of the Van Phong Economic Zone Authority, stated that the authority will approve the adjustment of HVS’s investment registration certificate. He affirmed that the 20-year extension of the certificate complies fully with legal regulations.

During the meeting, Deputy Minister Sang praised HVS’s role in the development of Vietnam’s shipbuilding industry, noting that the joint venture’s operations have contributed to not only the development of SBIC but also Vietnam’s shipbuilding sector.

He highlighted the partnership as a symbol of the strong Vietnam-South Korea friendship.

As of January 31, 2025, HVS had delivered 183 vessels to clients in Singapore, the UK, Japan, Greece, Denmark, and Italy, among others, including cargo ships of up to 87,000 tons and oil tankers of up to 115,000 tons.

In 2024, the joint venture built and delivered 15 newly constructed ships and one ship cabin, generating $624 million in revenue. This year, it plans handovers of 16 new ships and nine ship cabins, with expected revenue of $702 million.