Technical Report No. 8 PORT AND SHIPPING

I-4-9
Vietnam National Transport Strategy Study (VITRANSS)
Technical Report No. 8
Shipping and Ports
It is advisable to adopt the joint-ownership method and organization in
Vietnam to support ship owners who are financially constrained.
(5) Maritime organization
Another critical aspect is the overall management of the industry. To
achieve a coordinated, well-planned and complementary development of
the maritime industry, it is necessary to establish a government agency
that will attend to all maritime affairs and agencies.
4.1.5 Implications for Vietnam’s Shipping Industry
To pursue the planned fleet expansion program in Vietnam, it is likewise
necessary to establish supporting policies for the shipping industry.
1) State financial organization: In particular, as a practical measure in securing
financial funds for ship acquisition and shipbuilding, the establishment of a
state financial organization is strongly recommended. This organization
should be created as a financial center and an advocate of shipping and
related industries. Also, the possibility for this organization to be a credit
facility should be explored. Funding can come from foreign cooperation funds
for relending to eligible borrowers regardless of sector at a reasonable
interest rate. As already discussed, similar organizations already operate in
Malaysia and the Philippines with the full support of their respective
governments.
2) Tax breaks: These are effective measures to relieve ship owners with
financial burden. New taxation policies on corporate and income taxes should
be adopted until such time as ship owners become competitive.
3) Other schemes: There are certain schemes to encourage a fair and free
competition in shipping at the international level like the APEC maritime
initiative and Asian shipping forum. However, since the Vietnamese shipping
industry is still under the process of improvement in terms of available
capacity and ability, appropriate and supporting measures should be strictly
enforced. The shipping industry in Vietnam must proceed cautiously toward
opening its market and allowing competition, particularly in domestic
shipping, if the public and national interests are at stake.
4) Joint ownership and corporatization: As one of the specific measures to
assist ship owners in acquiring and building vessels for domestic use, it
would be appropriate to encourage joint ownership which has long been
adopted by the CATT to promote and modernize Japan’s domestic fleet.
4.2 Development of a Transshipment Port in Vietnam