Vietnamese ships to carry 20% of seaport goods by 2030

Vietnam’s commercial fleet is tasked with carrying 10% of import-export goods at domestic seaports in 2026 and then 20% in 2030, according to a Ministry of Transport scheme on the country’s shipping development.

Under the scheme, signed by Deputy Minister of Transport Nguyen Xuan Sang, to achieve the goal, the country will improve the legal framework, expand application of IT, streamline administrative procedures, further participate in international pacts related to sea transport; and provide financial incentives.

The country will offer VAT exemption for ships imported by Vietnamese shippers until the end of 2026. As part of Vietnam’s efforts to fulfill its zero-emission commitment at the COP 26, import tax exemption and a 50% reduction in tonnage fees will also be offered to operators of container ships from 1,500 twenty-foot equivalent units (TEUs) and ships fueled by clean energy like LNG and hydrogen until end 2030.

Besides, crew members of ships operating on domestic routes are subject to exemption of personal income tax.

From 2026 to 2030, the government will enhance its support to container ships in approaching international routes, including the markets of Japan, South Korea, India, the Europe, and the U.S.

Sea routes account for 90% of import-export goods in Vietnam, the Vietnam Logistics Business Association said in a report. However, the Vietnamese fleet accounted for only 7% of the market share. The amount of goods passing through seaports in Vietnam increased 10-15% annually on average.

As of December 2021, there were 1,502 ships under a Vietnamese flag, after a reduction of 400 vessels in 2010-2015 and another 200 from 2016, according to the Ministry of Transport. However, the deadweight tonnage of the Vietnamese fleet increased 6% in the period.

The amount of goods transferred via seaports in Vietnam reached 496 million tons in the first eight months of the year, up 3% year-on-year, the Ministry of Transport reported.

The August figure reached 62 million tons, of which container goods hit 2.13 million TEUs. Vietnam needs to invest $13 billion in seaport infrastructure by 2030 to improve the handling of container goods from the current 24 million twenty-foot equivalent units a year to 30-40 million, said the Vietnam Port Association.