South Korean shipbuilder HD Hyundai Mipo will increase its investment in HD Hyundai Vietnam Shipbuilding to boost its shipbuilding capacity by more than 50%. By strengthening its production capacity to meet growing demand for large and medium-sized vessels, it hopes to accelerate its entry into the global shipbuilding market.
The Khanh Hoa Province Special Economic and Industrial Zone Management Committee announced on August 11 that it has recently approved an investment plan of approximately VND 1.5 trillion (approximately US$57 million) by HD Hyundai Vietnam Shipbuilding, a subsidiary of HD Hyundai Mipo, for the construction of new piers 4, 5, and 6 and the expansion of facilities. HD Hyundai Vietnam Shipbuilding plans to increase its annual shipbuilding output from the current 15 to 23 vessels by 2030, building on this investment.
Specifically, HD Hyundai Vietnam Shipbuilding’s Pier 4 will cost VND 41.4 billion (approximately US$1.58 million) and is scheduled for completion in 2026. Piers 5 and 6 will each cost VND 113.3 billion (approximately US$4.32 million) and are scheduled for completion in 2030. Upon completion and commissioning of all facilities, HD Hyundai Vietnam Shipbuilding’s annual shipbuilding capacity will expand to 1.44 million deadweight tons (DWT), with the largest ship it can build increasing to 115,000 deadweight tons.
At present, HD Hyundai Vietnam Shipbuilding has an annual shipbuilding capacity of 950,000 deadweight tons and can build ships with a maximum capacity of 110,000 deadweight tons. In 2024, it is expected to deliver a total of 15 ships, generating approximately US$620 million in revenue. In 2025, it is projected to deliver 16 ships and 9 ship blocks, with revenue exceeding US$700 million.
As early as June this year, HD Hyundai Mipo revealed plans to promote the transformation and upgrading of HD Hyundai Vietnam Shipbuilding, adjusting its product structure from focusing on the construction of bulk carriers and oil tankers to a broader range of general merchant ships.
In addition to increasing production capacity, HD Hyundai Vietnam Shipbuilding is actively ensuring financial stability and has signed a short-term credit financing agreement worth VND 3.805 trillion (approximately US$145 million) with the Khanh Hoa Branch of Vietnam Joint Stock Commercial Bank for Foreign Trade.
HD Hyundai Vietnam Shipbuilding was established in 1996 as a joint venture between HD Hyundai Mipo and Vietnam National Shipping Lines. The shipyard covers an area of about 992,000 square meters, owns a 400,000-ton slipway and a 100,000-ton slipway with the largest 700-ton gantry crane and a quay shoreline length of 1.4 kilometers. HD Hyundai Vietnam Shipbuilding was initially engaged in the business of ship repairing and retrofitting, then entered into the newbuilding business after 2008, and exited the ship repairing business after 2011 and completely shifted to the newbuilding business.
HD Hyundai Vietnam is said to be “the first and most successful case of overseas expansion of Korean shipbuilding industry”. Currently, it focuses on building bulk carriers and tankers of 50,000 DWT to 80,000 DWT. To date, it has received orders for more than 200 new ships.
It is worth mentioning that HD Hyundai Vietnam Shipbuilding has been recognized as an enterprise that contributes to boosting local economic vitality and creating employment opportunities. Last month, the Chairman of the People’s Committee of Khanh Hoa Province, Vietnam visited HD Hyundai Vietnam Shipbuilding, inspected the current production situation, safety management, and investment expansion plans, and promised to improve the investment environment and provide support.