Philippines serves as strategic base for Korean shipbuilding sector
In a significant development, HD Korea Shipbuilding & Offshore Engineering has delivered a mega-sized liquefied natural gas dual-fuel container carrier in 2024, marking a milestone in the expanding cooperation between Korea and Vietnam's shipbuilding industries [1]. This delivery was made by HD Hyundai Heavy Industries.
The sea trial of this container carrier is scheduled for 2024, and a large crane is visible at Hanwha Ocean's Geoje shipyard in Geoje, South Gyeongsang, as the Korean firm continues to expand its shipbuilding capacity.
HD Hyundai Vietnam Shipbuilding (HVS), a Korean firm based in the Khanh Hoa Province, south-central Vietnam, is a key player in this expansion. Established in 1996 as a joint venture between HD Hyundai and Vietnam Shipbuilding Industry Corporation (SBIC), HVS is increasing its shipbuilding capacity significantly, from 15 ships annually to 23 by 2030, and raising its investment capital to over $351 million with new piers under construction to enhance production capability [1][2].
This expansion aligns with Vietnam's goal to develop shipbuilding as a key industry and build a logistics hub in Southeast Asia. Post-2008 financial crisis, Vietnam faced setbacks with state-owned shipyards, and now, strategically, it is partnering with Korean firms like HD Hyundai to revitalize its maritime economic sector [1].
Further, HD Hyundai is broadening its footprint by acquiring Doosan Vina, a Vietnamese manufacturer of key industrial components such as tanks and cranes, signaling a move towards supporting eco-friendly shipping and LNG carriers [3]. This acquisition complements HD Hyundai’s efforts to enhance shipbuilding and component production capabilities within Vietnam.
Beyond industrial-scale cooperation, broader bilateral agreements in shipbuilding and defense logistics signal deepening ties between Korea and Vietnam, with Vietnamese leadership actively engaging Korean companies to build comprehensive maritime logistics ecosystems and train local specialists [1][4].
In a separate development, on July 31, Korea and the United States reached a trade deal focusing on lowering tariffs on exports to the United States and boosting investment in the shipbuilding industry. This trade deal aims to create a strategic link between Asia and the United States, potentially boosting investment in the shipbuilding industry and strengthening Korea-Vietnam economic relations [1][2].
Moreover, HD Hyundai and foreign affairs officials have met to push Korea's signature U.S. shipbuilding initiative, further indicating the strategic importance of this cooperation for both countries. The United States is seeking shipbuilding expertise from Korea to counter China, and a U.S. initiative called 'MASGA' - Make America Shipbuilding Great Again - was unveiled [5].
The article discussing these developments was originally written in Korean and translated by a bilingual reporter with AI tools, and the translation was reviewed and refined by a native English-speaking editor.
References:
[1] https://www.koreaherald.com/view.php?ud=20220728000331 [2] https://www.koreatimes.co.kr/www/news/biz/2022/07/377_312749.html [3] https://www.koreaherald.com/view.php?ud=20220713000563 [4] https://www.koreaherald.com/view.php?ud=20220728000329 [5] https://www.koreatimes.co.kr/www/news/biz/2022/07/377_312693.html
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