Pinpoint was contracted to learn and assess the potential of Vietnamese shipbuilding and finding potential European customers in order to create growth.
It was found the main strengths for Vietnam’s shipbuilding industry are based on the country’s vast labour force available at low wage levels, the government’s commitment to developing the sector, duty free export and the increasing level of skills therefore the quality is very good. The Vietnamese shipyards are as as efficient and the average cost is lower than in competing shipbuilding nations resulting in position that is net positive.
One of the concerns is the limited availability of local production of marine equipment. Most needs to be imported which is costly and which limits the Vietnamese economy to benefit from the sector’s development. It is therefore the country’s strategy to increase the local share and this requires investing in facilities and skills for marine equipment manufacturing.
Market opportunities were found are in the offshore sector, warships / military craft, aluminium and steel workboats and the repair industry, as well as the fact that Vietnam’s economic growth will cause an increased demand for domestic coastal shipping.
Pinpoint successfully introduced a client, listed on the OSE, to a selected shipyard in the North of Vietnam. They now have a framework agreement, after a initial small order assessing the yards capability. This future potential of this relationship will value $20 million plus / annum which is expected to increase over the next few years as the aqua culture sector continues to grow.
Pinpoint provided local support and information so the client could :
- Select the shipyard to ensure it gives the customer the highest potential to influence the quality of the new build and life cycle cost
- Assess the facilities & implementation process to determine the organisation, planning, management and resource control of the shipyard.
- Assess the production capability, good quality treated steel plates will save a project significant lead time and cost at later stages of the new building process.
- Sample a ship that is close to completion to greatly assists in providing a direct impression of the quality of a new building constructed at that shipyard.
Pinpoint have both local support and a network of shipyards nationwide providing a diverse capability.