HD HYUNDAI Vietnam Shipbuilding, a subsidiary of South Korea’s HD Hyundai Mipo, is planning to expand its 20 ha shipyard in Khanh Hoa Province, Vietnam, to boost its shipbuilding capacity.

According to the Khanh Hoa Department of Planning and Investment, HD HVS leaders met with the province’s party committee secretary, Nghiem Xuan Thanh, earlier this week to discuss challenges in securing additional land for the expansion.

The company stated that if a site is found, construction could begin in 2025, with the expanded yard operational by 2026.

The expansion is expected to increase HD HVS’s annual shipbuilding capacity from 15 vessels to 20, aligning with a growing order backlog and the company’s focus on utilizing local labour.

An HD Hyundai official told Lloyd’s List: “Vietnam has abundant manpower and resources, so demand is increasing. HD HVS’ order backlog is already three years’ worth of work. This expansion aims to create a stable shipbuilding environment.”

The company also proposed extending its project lifespan by 20 years, as the current contract is set to expire in 2042.

HD HVS, which transitioned from ship repair to newbuilding in 2011, expects to complete and deliver 15 vessels in 2024, including bulk carriers and product carriers.

In the third quarter of 2023, the company reported an operating profit of Won8.1bn ($5.8m) on sales of Won210.6bn.

Currently, HD HVS employs around 5,000 local workers and 60 South Korean engineers from HD Hyundai Mipo.

During the meeting, secretary Nghiem Xuan Thanh praised HD HVS for its contributions to the province’s development and affirmed that their challenges and recommendations, including land acquisition, will be reviewed and addressed.

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