Shipping Crisis

The world economic slowdown has led to a decline in goods being shipped with the consequence that many maritime enterprises, especially shipping lines, face bankruptcy.

Shipping firms face bankruptcy

Many maritime enterprises, especially shipping lines, face bankruptcy because of the world economic slowdown. This had led to a decline in goods being shipped, said the Viet Nam Maritime Administration.

“The situation has pushed the administration into trying to provide policies to support enterprises, settle economic disputes and ensure maritime security,” the administration’s vice head Do Hong Thai said.

According to administration statistics, in the first half of the year, 46.8 million tonnes of goods was transported by sea. This was 5.77 per cent higher than for the same period last year – and 45.5 per cent of the year’s target.

Meanwhile, more than 52,000 visits were made to Vietnamese ports by Vietnamese and foreign ships. They carried a total of 145 million tonnes of goods, accounting for 46.9 per cent of this year’s target.

A shortage of capital was one of the main difficulties, interrupting the progress of some infrastructure projects, Thai said, adding that the administration was making efforts to ensure disbursement for approved projects.

He said the administration had taken action to adjust maritime fees and services to match reality and raise Viet Nam’s competitiveness to attract goods by sea.

Moreover, the administration was developing projects to diversify freight services as well as strategies to develop Vietnamese cargo boats.

Deputy Transport Minister Nguyen Van Cong said the administration needed to work out detailed policies to support maritime enterprises having difficulties during the economic slowdown.

He also urged the administration to pay more attention to studying and forecasting market demand.

The administration was asked to quickly finalise a project to attract investment from the private sector in maintaining marine infrastructures.

In June, Viet Nam had more than 1,680 ships, including about 450 international cargo vessels capable of carrying nearly two million tonnes of goods.

At present, in terms of loading capacity, Viet Nam ranks sixtieth out of the 152 flag states worldwide – and fourth out of the 10 ASEAN members.
Source: Viet Nam News