The Vietnamese government is looking to improve the state of the domestic shipping industry, particularly the floundering container shipping sector, through more administrative reforms.
Deputy Minister of Transport Nguyen Van Cong said the ministry is collaborating with the Ministry of Industry and Trade and other government bodies to open up more opportunities for Vietnamese shipping lines.
The country’s carrier operators reported in a meeting with the Ministry of Transport earlier this month of the industry’s under-performance and difficulties, with many companies on the verge of bankruptcy.
Data show that the vessel fleet in Vietnam is excessively in favor of bulk carriers and lacking in container ships, which number only 28 out of the total 1,700 vessels, according to a report by VietnamNet Bridge.
Box ships’ operations are also confined only around Southeast Asia, China, and Taiwan, and domestic vessels transport barely 10 percent to 12 percent of the country’s export and import output, the report added.
The container shipping sector also has to contend with a lack of capital for fleet maintenance and expansion, and many carriers are forced to sell their services at rates lower than operating costs to retain their clients.
Deputy Minister of Transport Nguyen said the ministry has asked large export companies to use domestic vessels in delivering goods to nearby markets with the ultimate goal of utilizing them later on to transport cargo to farther areas.
He also promised to continue administrative reforms, including prescribing a floor price policy on loading and unloading services at ports to stabilize the market and prevent price undercutting.
Photo: Khanh Hmoong
