Samsung Heavy close to buying into Vietnamese shipbuilding

Samsung Heavy close to buying into Vietnamese shipbuilding

Hanoi: One of the world’s most successful shipbuilders is close to buying into a Vietnamese shipyard. Samsung Heavy Industries from South Korea has won approval from Hanoi to buy up to 50% of a shipbuilding subsidiary by Shipbuilding Industry Co, formerly Vinashin, in Cam Ranh Bay.

Deputy transport minister Nguyen Hong Truong said Samsung was also interested in taking a stake in Ha Long Shipbuilding too.

Samsung would not be the first Korean to have bought into Vietnamese shipyards. Hyundai Mipo has run a successful joint venture in the company for many years, while STX, following its buy out of Aker Kvaerner six years ago, took over a pair of small yards in the country.

Samsung, which has a yard in China, has been scouring Southeast Asia for a number of years for a suitable international yard expansion strategy.

Hanoi has made it clear it wants to equitise much of the state-run transport infrastructure to raise funds and also improve efficiencies. For instance, the transport ministry is also selling stakes in eight ports now held by Vietnam National Shipping Lines this year and the parent company will hold a float early next year.  [26/05/14]