HANOI: Viet Nam will transport between 500 million and 600 million tonnes of goods this year by sea, the Vietnam Maritime Administration (Vinamarine) has said. The Vinamarine hopes to transport between 900 million to 1.1 trillion tonnes by 2020, by sea, which has seen the strongest development in the country’s industrial transport sector.
With advantages including its geographic position and a long coastline, the target is seen achievable, but it is difficult to turn the plan into reality because transportation of the country’s exports are in the hands of foreign carriers. The warning about losses in the market share of sea transport activities has been voiced for many years but domestic businesses have seen no active changes.
The Vinamarine says that foreign fleets have taken advantage of offshore routes because they have a global network and a long-term prestigious trademark, which makes it easier for them to find clients.
As for Vietnamese businesses, the required conditions of their ships or skilful crews to conduct long trips on the sea is not a problem, but only if the fleets receive profitable orders to transport goods both ways. As of now, they only receive orders to transport goods to foreign shores, but none to bring back. Dues to this, no fleet dares to transport goods, because it is a loss-making operation.
This is also because of the long-term habit of many cargo owners who often buy goods based on the CIF (Cost, Insurance and Freight) method or sell goods using the FOB (Free on Board) method. Therefore, Vietnamese businesses have lost goods carriage rights, and have to use ships firms nominated by international clients.
In addition, there is little support and association between Vietnamese businesses. Many firms simply export their goods as soon as possible, not caring to support the development of domestic fleets. Many Vietnamese sea transport firms have not managed to overcome their difficulties because of the losses they have suffered in the past five years.
