HD Hyundai Vietnam Shipbuilding, HD Hyundai’s overseas production base, is set to expand its production capacity to 15 vessels per year from the current maximum of 12 vessels. According to HD Hyundai, it plans to further expand its annual capacity to 23 vessels by 2030.
HD Hyundai Vietnam Shipbuilding is the largest and most advanced shipyard in Vietnam. As the production programs of Asian shipbuilding powers such as China and South Korea are saturated in the next three years, shipowners are gradually turning their attention to Vietnam.
HD Hyundai Vietnam Shipbuilding, located in Khanh Hoa Province, central Vietnam, was established in 1996 as a joint venture between Hyundai Mipo Shipbuilding (now renamed HD Hyundai Mipo) and Vietnam National Shipping Corporation.
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. By the end of 2023, it has accumulated orders for more than 204 vessels and delivered more than 180 newbuildings.
The shipyards of HD Hyundai are receiving a flurry of orders as newbuilding prices reach their highest point since their peak in 2008. The group’s local shipyards in South Korea are expanding significantly to cope with increasing demand.
HD Hyundai Heavy Industries has begun acquiring a local block manufacturer to speed up ship construction. Meanwhile, HD Hyundai Samho has recently opened a new berth. In addition, HD Hyundai has reopened a mothballed shipyard in Gunsan City in 2022.
A recent report by VesselsValue states, “The high order book for container ships and LNG carriers in 2021 and 2022 is putting more pressure on shipyards’ capacity and construction cycles. As a result of the surge in order books, shipbuilders have the upper hand in price negotiations and newbuilding prices have risen.”