Seaport enterprises set for promising year in 2022

Companies in the industry are expect to continue to grow strongly after thriving in 2021.

Container trucks waiting to unload at Cát Lái Port in HCM City. — VNA/VNS Photo

The seaport industry is expected to continue to grow strongly this year thanks to active import and export activities and the fact that Việt Nam remains an attractive destination for FDI inflows. Higher handling fees will also benefit seaport enterprises.

Positive outlook

ACB Securities Ltd. (ACBS) said that in 2022 it was expected that transportation activities will remain stable, with the volume of goods up about 6 per cent.

The volume of goods transported through Vietnamese seaports in 2022 is forecast to reach 750 million tonnes, up about 3 per cent compared to last year, the securities firm added.

The industry's growth is driven by the recovery and reopening of the global economy thanks to the higher COVID-19 vaccination rate, helping trading activities.

Việt Nam is still an attractive destination for FDI inflows due to the disruption of the global supply chains and the wave of a production shift. The country also benefits from many free trade agreements.

FDI inflows into Việt Nam recorded a compound growth rate of over 8 per cent in 2014-2020, boosting the volume of goods transported through seaports. In 2021, FDI capital is estimated at US$31.15 billion, up 9.2 per cent over 2020.

In addition, the Ministry of Transport is submitting to the Government a draft amendment to a circular on handling fees at Vietnamese seaports. Handling fees at ports will increase by 10 per cent in 2022-2024 depending on the port area, resulting in higher profits for seaport enterprises.

However, ACBS also pointed out challenges the industry is likely to face in 2022, including higher freight rates, which increase short-term risks.

Due to the scarcity of containers and congestion at major ports in the world, freight rates have surged, which reduces the number of goods circulating through seaports. Rising oil prices also push transportation costs higher, reducing shipping demand.

The continuing complexity of the COVID-19 pandemic still badly affects global supply chains, causing lower consumer demand and negatively impacting the workforce in the industry.

Big returns

Despite the developments of COVID-19, Vietnamese seaport enterprises still witnessed outstanding growth in profits last year.

The fourth quarter business result of Việt Nam National Shipping Lines (VIMC) showed that its profit after tax reached VNĐ2.9 trillion in 2021, 14 times higher than that of 2020.

Its shipping volume was 23 million tonnes, reaching 121 per cent of the plan. After many years of losses, VIMC's shipping sector posted a positive performance in 2021.

Sixteen VIMC seaports have handled over 125 million tonnes of goods, up 13 per cent compared to 2020.

VIMC's port system has also developed 13 new routes for container shipping lines. The sector continues to be the most effective business activity of the company, accounting for 78 per cent of total consolidated profit.

Port of Hải Phòng also posted net revenue of VNĐ2.2 trillion in 2021, up 12.5 per cent year-on-year, with profit after tax reaching nearly VNĐ694.6 billion, up more than 23 per cent.

Similarly, Saigon Port's net revenue climbed by 46.6 per cent year-on-year to VNĐ1.37 trillion last year, while its profit after tax attained VNĐ893.4 billion, nearly four times higher than in 2020.

In the last quarter financial statement of 2021, VIP Greenport saw a gain of nearly 10 per cent over 2020 to VNĐ816.1 billion in net revenue, resulting in a profit after tax of VNĐ203.7 billion, up 34.2 per cent.

VIP Greenport operates in cargo handling, seaport services, warehousing and coastal freight transport services.

Analysts from SSI Securities Corporation said that on the stock market, the seaport and logistics stock value grew up to 94 per cent in 2021, 60 per cent higher than the market benchmark VN-Index. Of which, MVN surged by 205 per cent, SGP up 183 per cent, PHP jumped 72 per cent and VGR up 30.7 per cent. — VNS

Source: VNA
vietnamnews.vn

Related News

Two key tasks of digital transformation in 2024 of Customs industry

Two key tasks of digital transformation in 2024 of Customs industry

VCN - On May 28, 2024, the Director General of the General Department of Customs signed Decision 1254/QD-TCHQ on promulgating the Digital Transformation Plan of the General Department of Customs in 2024. In the Plan, the General Department of Customs set out many goals, tasks and solutions to create strong changes in the digital transformation of the entire industry, especially focusing on implementing the Prime Minister's recent direction on digital transformation in the field of customs and Digital Transformation Plan 2024 of the Ministry of Finance.
Cashew exports are struggling because of being on passive in raw material sources

Cashew exports are struggling because of being on passive in raw material sources

VCN - For each container of exported cashew kernels, enterprises lose hundreds of millions of dong when they have to import raw materials at high prices, while export prices are not adjusted to increase accordingly.
Greening creates competitive and sustainable advantages for enterprises

Greening creates competitive and sustainable advantages for enterprises

VCN - The gradual greening of production, green factories, green technology, clean materials, green energy, etc., has become an inevitable trend and creates competitive and sustainable advantages for enterprises in the face of difficulties and challenges.
Removing problems with settlement reports and storage for export processing enterprises

Removing problems with settlement reports and storage for export processing enterprises

VCN - During the process of carrying out customs procedures, issues such as management of raw materials, supplies or settlement reports are always concerned by processing, export manufacturing and export processing enterprises. Recently, Hanoi Customs Department has answered many questions about customs procedures for export processing enterprises.

Latest News

New opportunities for Vietnam-Russia trade

New opportunities for Vietnam-Russia trade

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.
MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

The Ministry of Industry and Trade (MoIT) has requested an investigation and application of anti-dumping measures against some galvanised steel products originated from China and the Republic of Korea (RoK).
Greenovation forum for businesses to be held later this month

Greenovation forum for businesses to be held later this month

Given the rising demand for sustainable development and the associated business opportunities, the Vietnam Independent Directors Association (VNIDA) will host a forum for companies to demonstrate their commitment to both economic interests and environmental responsibility in Ho Chi Minh City on June 26.
Quang Ninh aims to attract 3 billion USD worth of FDI this year

Quang Ninh aims to attract 3 billion USD worth of FDI this year

Northern Quang Ninh province has attracted more than 1.52 billion USD worth of foreign direct investment (FDI) in the first half of this year and is poised to reach its goal of 3 billion USD in FDI for the full year.

More News

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

VCN - As the first dry port of Binh Duong province to be announced, Thanh Phuoc Port has just been recognized by the Ministry of Finance as a Customs Clearance Site, which is expected to promote the transportation of goods by waterway, to save logistics costs for businesses.
Quang Ninh strives to become northern region’s marine aquaculture hub

Quang Ninh strives to become northern region’s marine aquaculture hub

The northeastern province of Quang Ninh aims to become a fisheries hub in the northern region by 2030.
Bac Giang lychees promoted in Thailand

Bac Giang lychees promoted in Thailand

Fresh lychees from Luc Ngan district, the northern province of Bac Giang, continue to be sold at the supermarket chain of Gourmet Market and shopping malls belonging to Thailand’s The Mall Group this year.
Quảng Ninh posts fourth fastest growth in Red River Delta

Quảng Ninh posts fourth fastest growth in Red River Delta

The gross regional domestic product (GRDP) in the northern province of Quảng Ninh expanded at an estimated 9.02% year on year during the first half of 2024, ranking fourth in the Red River Delta and eighth nationwide.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

The development of a separate decree on innovation and innovative start-ups is underway with an aim to leverage innovative start-up firms to a new height.
Early US recognition of market economy to increase opportunities for Vietnamese exports

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Vietnam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to this market, according to experts.
Industrial production grew on a large scale

Industrial production grew on a large scale

VCN - 55 localities had an increase in the index of industrial production (IIP) compared to the same period last year, only 8 localities had a decrease in IIP compared to the same period last year.
More export opportunities from the Chinese market

More export opportunities from the Chinese market

VCN – Besides 12 fruit and vegetable items; bird's nest, fish meal and some products for the production and processing of animal feed, dairy and seafood products that have been officially exported to China, fresh coconuts, frozen durian, crocodiles, poultry... are expected be officially exported to the Chinese market in the near future.
Việt Nam

Việt Nam's cinnamon exports hits over $96.3 million in five months

Farmers have been continuously working on new techniques to improve the quality and productivity of cinnamon trees.
Read More

Your care

Latest Most read
New opportunities for Vietnam-Russia trade

New opportunities for Vietnam-Russia trade

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.
MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

The Ministry of Industry and Trade (MoIT) has requested an investigation and application of anti-dumping measures against some galvanised steel products originated from China and the Republic of Korea (RoK).
Greenovation forum for businesses to be held later this month

Greenovation forum for businesses to be held later this month

Given the rising demand for sustainable development and the associated business opportunities, the Vietnam Independent Directors Association (VNIDA) will host a forum for companies to demonstrate their commitment to both economic interests and environmental responsibility in Ho Chi Minh City on June 26.
Quang Ninh aims to attract 3 billion USD worth of FDI this year

Quang Ninh aims to attract 3 billion USD worth of FDI this year

Northern Quang Ninh province has attracted more than 1.52 billion USD worth of foreign direct investment (FDI) in the first half of this year and is poised to reach its goal of 3 billion USD in FDI for the full year.
Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

Import-export businesses reduce costs thanks to the customs clearance location at Thanh Phuoc Port

VCN - According to Director of Binh Duong Customs Department Nguyen Tran Hieu, currently, the majority of import and export goods of businesses in the area are transported by sea.
Mobile Version