return icon

Vietnam bars its door to foreign ships, monopoly may return

The Ministry of Transport has decided that from January 1, 2013, Vietnam will not renew the container transport licenses and will not grant new licenses to the ships which do not bear Vietnamese flags.

VietNamNet Bridge – The Ministry of Transport has decided that from January 1, 2013, Vietnam will not renew the container transport licenses and will not grant new licenses to the ships which do not bear Vietnamese flags.

More jobs to Vietnamese shipping agents

The decision aims to protect the Vietnamese fleet which is facing big difficulties due to the capacity abundance.

With the decision, about 20 ships bearing foreign flags with the total tonnage of 500,000 DWT, running on domestic container routes, would be locked out.

Bui Thien Thu, Deputy Head of the Vietnam Maritime Bureau, affirmed that the decision absolutely comes in line with the Maritime Law and the WTO commitments on protecting the transportation rights of member countries.

Vietnam attempts to claim back 1 trillion dong from foreign ships

Once foreign ships are prohibited to run on domestic routes, they would not be able to earn one trillion dong a year, which also means that the sum of money would fall into the hands of domestic fleet.

In the past, the Ministry of Transport allowed foreign ships to provide shipping services on domestic container routes because the domestic ships then neglected the domestic market, while they were busy making money on international routes.

However, since the international shipping market has fallen into recession due to the weak demand, domestic ships have to return home to look for jobs on the home market. Meanwhile, it is not easy to regain the domestic market which has been controlled by foreign shipping firms.

According to Do Xuan Quynh, Secretary General of the Vietnam Shipowners’ Association, at least two container ships with the tonnage of 1000 TEU have been left idle, while the figure would be higher by the end of the year, when the Vietnam National Shipping Lines (Vnalines) receives three new container ships.

Thu said, due to the unprofitable business, a lot of shipping firms like Vinalines or Bien Dong (East Sea) have to sell ships. The Vietnamese fleet, which had 32 ships earlier this year, now has 24 ships only. Some ships have been chartered to foreigners at very low fees, while others have been left idle for the last many months.

Thu, while applauding the decision by the Ministry of Transport, has affirmed that the Vietnamese fleet is quite capable to satisfy the domestic demand and take over the jobs left by the 20 foreign ships.

Goods owners feel worried

While the Vietnamese ship owners feel excited about the new decision, Vietnamese goods owners feel worried stiff.

Secretary General of the Vietnam Goods Owners’ Association Phan Thong said he fears that the decision would generate the monopoly. Once the market is controlled by domestic shipping agents, they may raise difficulties to ship owners.

A representative of the Vietnam Textile and Garment Association (Vinatex) said that the closing of the door to foreign ships may not be the proper solution to help improve the Vietnamese fleet’s capacity.

He said that Vietnamese shipping agents have been less favored by domestic goods owners because they still cannot provide good services. Especially, in many cases, they cannot deliver goods on time and they charge overly high fees.

Deputy Minister of Industry and Trade Tran Tuan Anh has expressed his worry that if Vietnamese enterprises have to bear higher freights, their exports would be less competitive in the world market.

In theory, the Vietnamese fleet has abundant capacity; however, this does not mean that it’s easy to find service providers. It may happen that Vietnamese ships, which previously aimed to serve on international routes, cannot dock at Vietnamese ports. In other cases, they would refuse to provide services if the volume of cargoes is modest.

“If so, the export would go stagnant, and Vietnam would lose important markets,” Anh said.



SEA Games torch carried through streets of Hanoi

Brimming with symbolism, the torch was ceremoniously lit from a small lamp that had landed on Vietnam’s soil two days prior, and had been carefully guarded at the Cambodian Embassy.

British experts discover new untouched caves in Quang Binh

Five new caves where humans have never set foot were recently discovered in Lam Hoa commune of Tuyen Hoa district in the central province of Quang Binh by experts of the British Royal Cave Association.

30 Indonesians fall victim to Malaysia human trafficking ring in Vietnam

The police in Ho Chi Minh City have busted a human trafficking ring involving Malaysian nationals that allegedly deceived 30 Indonesians for property appropriation in Vietnam.

Over 103,000 TB cases detected in Vietnam last year

Vietnam detected 103,120 tuberculosis (TB) patients in 2022, up nearly 31% year-on-year, and 1.8% against that of 2020.

Vietnam commits to cross-border water development goals: Deputy PM

Vietnam pledges to further enhance cooperation with international organisations and partners to achieve sustainable cross-border water development goals, Deputy Prime Minister Tran Hong Ha has said.

Vietnam tourism promoted in Japan

A workshop on Vietnamese tourism and carriers, co-hosted by Vietnam Airlines and travel operator Thien Minh Group (TMG), took place in Tokyo on March 24, gathering 80 travel companies and airlines from both nations.

Hanoi seeks support from UNESCO in restoration of Kinh Thien Palace

Hanoi asked for continued support from the UNESCO World Heritage Centre (WHC) for a project to restore Kinh Thien Palace in the Thang Long Imperial Citadel in Hanoi, which was recognised as a UNESCO World Heritage Site in 2010.

CAAV suggests more time for piloting biometric authentication

The Civil Aviation Authority of Vietnam (CAAV) has proposed continuing pilot application of biometric authentication (facial recognition) at airports’ check-in desks.

Netflix to set up representative legal entity in Vietnam

Netflix is carrying out procedures with the Ministry of Planning and Investment to establish its representative legal entity in Vietnam.

Vietnamese Fintech unicorn among top 10 global financial platforms

Vietnam has one representative in the Global Platforms Ranking 2023, announced by TABInsights under The Asian Banker.

Newspapers should use AI wisely

AI can help journalists recognize if they are wasting resources by creating similar press products. However, journalists should only not depend on or be controlled by artificial intelligence (AI).

Pirated games flood the market as discounts are slashed on app stores

With app stores’ decisions to reduce discounts and support from payment service providers such as credit cards and e-wallets (MoMo), pirated games of international distributors, especially Chinese games, can easily enter Vietnam.

Vietnam needs to learn lessons in developing renewable energy

Dr Le Hai Hung says renewable power plants occupy much land, but environmental concerns remain controversial, and in the next 10 years, it will not be a reliable energy source for business production and people’s daily life.

High-end real estate developers advised to develop social housing

Realtors who specialize in high-end real estate projects should think of adding social housing projects to their business strategies, because the projects ensure sustainability and stability for them.

No time to waste in building the offshore wind industry

Action on accelerating offshore wind power projects is urgently needed if the government is to meet its targets for the decade.