HD Hyundai Mipo "Overcome China's Low-Cost Offensive" Builds Merchant Ships at Vietnamese Shipyard

【Financial News Hanoi (Vietnam)=Kim Jun-seok Reporter】HD Hyundai Mipo is reportedly working to transform the shipyard it operates in the south-central region of Vietnam into a production base for general-purpose merchant ships to compete against Chinese shipbuilding. This shipyard is currently focused on building bulk carriers and tankers (oil tankers), but it appears to be a strategy to transition into a construction base centered on general-purpose commercial ships (merchant ships) where China holds an overwhelming market share, in response to the upcoming 'order drought' after the supercycle.

According to local Vietnamese sources and the shipbuilding industry on the 29th, HD Hyundai Mipo recently completed related negotiations, including extending the land tenure with the authorities of Khanh Hoa Province, where the Vietnamese shipyard is located. HD Hyundai Mipo is expected to focus on structural improvements from the existing bulk carriers and oil tankers to general-purpose merchant ships with the authorities of Khanh Hoa Province.

HD Hyundai Mipo's recent move is significant as it is being pursued at a time when the US-China hegemony competition is intensifying and the competition for maritime dominance is spreading, aiming to surpass Chinese shipbuilding, which is aggressively pushing for volume with merchant ships.

Previously, the US government, based on the results of the 'Trade Act Section 301' investigation into Chinese shipbuilding and shipping in February, imposed sanctions by charging port fees on ships built by Chinese shipyards and owned by Chinese shipping companies, tightening the grip on Chinese shipbuilding.

Since the 2000s, Chinese shipbuilding has accelerated its 'shipbuilding rise' with the government and companies united. As a result, the carrying capacity of merchant ships owned by China is already the world's largest, four times that of our country.

Currently, HD Hyundai Mipo's Vietnamese subsidiary, HD Hyundai Vietnam Shipbuilding (HVS), started as a repair and conversion corporation in 1996, entered the newbuilding business in the late 2000s, and has since received orders for over 200 ships. It plans to increase its production capacity from the previous annual level of 12-13 ships to 23 ships by 2030 through expanding production facilities and improving processes. Earlier this month, it invested an additional $100 million (about 140.2 billion won). Furthermore, if the restructuring towards general-purpose merchant ships continues, HD Hyundai Mipo Shipbuilding's merchant shipbuilding capacity will significantly increase.

An industry official said, "HD Hyundai Mipo is expected to receive full support as it is trusted by local authorities and the industry to the extent that it is called 'the Samsung of Khanh Hoa Province'."rejune1112@fnnews.com Kim Jun-seok Reporter