Local shipping firms have effectively tapped domestic market, theVietnam Investment Review (VIR) reported on April 16. In an effort toaddress the redundancy of Vietnamese container ships, in late March2013 the Ministry of Transport (MoT) released Document 128/TB-BGTVT tostop 20 foreign flag-carrying ships capable of carrying 500,000 deadweight tonnage (DWT) from operating on domestic routes.
The policy was very helpful to local shipping firms.
Theyhad a good chance to regain market share of shipping lines that have anestimated value of 1 trillion VND (47 million USD) per year.
“It’sdifficult for foreign ship owners to go against the decision, as it isdefended by both the Maritime Law and WTO commitments on safeguardingthe transportation rights of member states,” said Bui Thien Thu, DeputyChairman of the Vietnam Maritime Administration (VMA).
Thu saidmost ship owners were satisfied with the competence and quality oftransport services provided by local shipping firms in domestic shippinglanes.
The policy came at a critical time as 2,200 labourersfrom Vinalines – a national shipping leader – sat unemployed for thefirst six months of last year.
“Most of Vinalines’ containerships are now working stably in domestic shipping lanes,” said Bui VietHoai, the company’s deputy general director.
The VMA was requiredby the MoT to work with Vinalines, the Vietnam Shipowners’ Associationand local ship owners to ensure goods were shipped quickly.
The shipping cost for a 20-foot container on Vietnam ’s north-south line is around 5.2 million VND (247 USD).
Accordingto Le Viet Tien, director of Vinalines’ subsidiary Vietnam OceanShipping Joint Stock Company (VOSCO), though the firm was only achievingbreak-even on its expenses, they accepted this given that their shipsand sailors were back to work.
Not only Vinalines, but alsoother shipping firms are running local routes such as Haiphong and CaiLan to Ho Chi Minh City and Ba Ria-Vung Tau.
This has been agood chance for shipping firms to prove to ship owners that they caneffectively operate the domestic [container shipping] market withoutforeign players,” said Vinalines’ deputy general director Bui Viet Hoai.-VNA
The policy was very helpful to local shipping firms.
Theyhad a good chance to regain market share of shipping lines that have anestimated value of 1 trillion VND (47 million USD) per year.
“It’sdifficult for foreign ship owners to go against the decision, as it isdefended by both the Maritime Law and WTO commitments on safeguardingthe transportation rights of member states,” said Bui Thien Thu, DeputyChairman of the Vietnam Maritime Administration (VMA).
Thu saidmost ship owners were satisfied with the competence and quality oftransport services provided by local shipping firms in domestic shippinglanes.
The policy came at a critical time as 2,200 labourersfrom Vinalines – a national shipping leader – sat unemployed for thefirst six months of last year.
“Most of Vinalines’ containerships are now working stably in domestic shipping lanes,” said Bui VietHoai, the company’s deputy general director.
The VMA was requiredby the MoT to work with Vinalines, the Vietnam Shipowners’ Associationand local ship owners to ensure goods were shipped quickly.
The shipping cost for a 20-foot container on Vietnam ’s north-south line is around 5.2 million VND (247 USD).
Accordingto Le Viet Tien, director of Vinalines’ subsidiary Vietnam OceanShipping Joint Stock Company (VOSCO), though the firm was only achievingbreak-even on its expenses, they accepted this given that their shipsand sailors were back to work.
Not only Vinalines, but alsoother shipping firms are running local routes such as Haiphong and CaiLan to Ho Chi Minh City and Ba Ria-Vung Tau.
This has been agood chance for shipping firms to prove to ship owners that they caneffectively operate the domestic [container shipping] market withoutforeign players,” said Vinalines’ deputy general director Bui Viet Hoai.-VNA
