S Korean-backed JV expands to boost Vietnam’s shipbuilding role

HD Hyundai Vietnam Shipbuilding Co., Ltd. (HVS) plans to expand its shipbuilding project in the south-central province of Khanh Hoa to raise production capacity and strengthen its position as an export base in the group’s global manufacturing network.

Targeting 17 new vessels in 2026

Founded in 1996 as a joint venture between South Korea’s HD Hyundai and Vietnam Shipbuilding Industry Corporation, HVS has delivered 198 vessels, including bulk carriers of up to 87,000 DWT and oil tankers of up to 115,000 DWT, to markets such as Italy, Japan, South Korea, Belgium, and Singapore.

In 2026, the company plans to build 17 new vessels, with projected revenue of approximately $691 million, marking slight growth compared to 2025. It currently operates at a capacity of around 1,440,000 DWT per year and is capable of constructing vessels of up to 115,000 DWT.

Company leaders stated that to meet evolving market demand, HVS will continue improving product quality while diversifying its portfolio to include eco-friendly dual-fuel vessels, container ships, car carriers, multipurpose vessels, and maritime support ships.

Within HD Hyundai’s global production strategy, Vietnam, through HVS, is positioned as a key export-oriented shipbuilding base thanks to its competitive costs within the global production chain. It complements the group’s shipyards in South Korea, which focus on high-tech vessels, LNG carriers, and specialized ships.

The firm is also regarded as a medium- and large-scale commercial shipbuilding hub serving international markets, as well as a long-term production platform for the group in Southeast Asia, helping diversify production locations and mitigate supply chain risks. Currently, it is considered one of the most efficient overseas shipyards within HD Hyundai’s global system.

To support growth in the next phase, HVS plans to extend its operating term by an additional 20 years (from 2046 to 2066). The company is completing procedures for this extension alongside plans to expand its production facilities in Vietnam.

If approved, the company will restructure workshop layouts to enhance productivity, while investing in additional berths and floating docks to implement on-land shipbuilding methods within its existing site.

Notably, to meet its expansion goals, the company has proposed to authorities an additional land expansion of approximately 18.9 hectares to the east. These upgrades are expected to significantly enhance production capacity and optimize operating costs.

Promoting workforce development, supporting industry ecosystem

Alongside production expansion, HVS is accelerating its human resource development strategy. The company plans to recruit approximately 1,200 workers and sign long-term MoUs with universities, colleges, and vocational schools specializing in mechanical engineering and shipbuilding. Recruitment will follow an “order-based training” model tailored to company needs.

HVS will also organize quarterly “Job Fair – Open Day” events in various localities and provinces, particularly when labor demand increases.

The company plans to strengthen professional training programs focused on environmentally friendly shipbuilding. It will also scale up production and design workforce training through a new internal training center, combined with cooperation with local universities and vocational institutions. This aims to increase both the quantity and quality of local design engineers to ensure mastery of detailed ship design.

In addition to direct investment in its own expansion project, HVS’s subcontractors and suppliers are planning to invest approximately $90 million to support increased production capacity.

This includes manufacturing auxiliary equipment and components such as deck houses, upper decks, and forming/steel cutting works. Company leaders emphasized that investment by subcontractors is a critical component of the overall capacity expansion plan.

According to an HVS leader, South Korea is currently one of the key economic partners of Khanh Hoa, with 27 FDI projects primarily concentrated in the shipbuilding industry. Among them, the ship repair, newbuilding, and steel structure fabrication project is considered a symbol of the effectiveness of South Korean investment in the province.

According to the provincial Economic and Industrial Zone Authority, the project includes construction of three new piers (No. 4, No. 5, and No. 6), increasing the newbuild ship capacity to 115,000 DWT and the overall capacity to 1,440,000 DWT per year.

Pier No. 4 is expected to be completed in 2026, while piers No. 5 and No. 6 are scheduled for completion in 2030.

Building on this foundation, HVS continues to promote connectivity and seek cooperation opportunities to attract further investment - not only for the company itself but also for the broader local industrial ecosystem, he said.

At a conference with subcontractors held on February 27, 2025, representatives of more than 60 supporting industry enterprises from South Korea expressed interest in exploring investment and partnership opportunities in Khanh Hoa. The goal is to establish a strong regional shipbuilding and related industrial ecosystem, he added.