Vietnam shipping giant sees revenue tripling in Trump tariff era
Vietnam plans an expansion of its nationwide seaport system by 2030
Published Fri, Jan 17, 2025 · 11:15 AM
VIETNAM Maritime, undaunted by potential tariffs from the incoming Trump administration that risk crimping the nation’s trade, forecasts revenue to more than triple in the next decade, general director Nguyen Canh Tinh said.
The state-owned shipping, logistics and seaports company, previously known as Vietnam National Shipping Lines or Vinalines, plans to expand its fleet by 20 per cent annually in the next five years, Tinh said. It also looks to upgrade harbours to accommodate larger vessels and increase global shipping routes.
The conglomerate currently manages a fleet of 48 ships, including seven container vessels. The world’s largest container liner, Switzerland-based MSC, operates around 860 cargo ships.
The Hanoi-based company’s revenue is expected to reach US$3 billion in the next 10 years from about US$800 million targeted for 2025, he said.
Vietnam Maritime (VIMC) is seeking a strategic partner with maritime industry expertise to help with expansion plans, Tinh said. VIMC later this year will submit a proposal to officials to cut the government’s stake to 65 per cent from nearly 100 per cent, he added.
The nation’s largest shipping company, which a decade ago faced near bankruptcy, is primed to aggressively tap Vietnam’s emergence as a major player in the global supply chain. The country now produces everything from shoes and shirts for global fashion brands to smartphones for Samsung Electronics and devices for Apple.
Possible new Trump tariffs “may cause some change in the cargo flows, but we believe that Vietnam may still benefit from that”, Tinh said. US demand for Vietnamese products is “still very huge”, he added.
Vietnam is among the world’s most trade-dependent nations, with exports accounting for about 85 per cent of its economy. The country had a surplus of around US$100 billion with the US in 2023, making it a possible target for US president-elect Donald Trump’s policies to rebalance trade.
The waters around South-east Asia are key thoroughfares facilitating world trade, specifically between China and the West. Vietnam’s seaports handled 30 million TEUs worth of goods last year, compared with 10.2 million in 2014, Tinh said. Neighbouring Singapore saw a record 41.12 million TEUs in containers throughput in 2024, with 90 per cent of those goods headed on to other destinations. Shanghai was the world’s busiest port last year, with container throughput exceeding 50 million TEUs.
The volume of containers passing through Vietnamese ports is expected to continue growing at about 4 per cent annually, reflecting an incessant flow of foreign investments into the country, many from global suppliers, analysts Le Anh Son and Vu Manh Tuan at VPBank Securities wrote in a December note. An anticipated surge in cargo demand ahead of possible tariffs could trigger an increase in freight rates.
Vietnam Maritime has stakes in 16 seaport operators with more than 80 wharves – 26 per cent of the nation’s total docks, according to its website. Its fleet accounts for 25 per cent of the nation’s annual shipping capacity.
The company’s growth blueprint includes improving seaport infrastructure, Tinh said.
Prime Minister Pham Minh Chinh just signed off on a transit port project in Ho Chi Minh City’s coastal suburb of Can Gio. VIMC has proposed developing the US$4.5 billion project, though the government has yet to choose an investor.
Vietnam plans an expansion of its nationwide seaport system by 2030 that will need about 351.5 trillion dong (S$18.9 billion) in investments, according to a decision signed by Deputy Prime Minister Tran Hong Ha.
Vietnam Maritime also looks to expand its international routes, including in Northeast Asia and the Middle East, and to China, Vietnam’s largest trade partner. While most of the cargo between China and Vietnam now moves across land, Tinh said water routes will be more attractive to companies in the future because they can reduce logistics costs.
VIMC recorded a pretax profit of 3.5 trillion dong in 2024, surging 65 per cent from a year earlier, it said. Total revenue rose 30 per cent to 18.2 trillion dong. Port cargo volume jumped 27 per cent, reaching 145 million tons for the year. The company forecasts revenue to rise 12 per cent to 20.3 trillion dong this year.
Vietnam Maritime was at risk of bankruptcy in 2013 as it faced total liabilities of more than 67.5 trillion dong and accumulated losses of over 23 trillion dong.
After more than 10 years of restructuring, VIMC erased its accumulated losses in the third quarter of 2023. BLOOMBERG
