Seaport, maritime transport firms more profitable
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Market recovery and larger freights helped Vietnamese seaport and maritime transport enterprises, both state-owned and private, gain bigger profits in the first half of this year.
Vietnam National Shipping Lines (VIMC) made consolidated revenues of more than VND6.2 trillion (nearly $269.6 million), a 20 percent increase, and consolidated profits of over VND1.1 trillion, doubling against the same period last year.
Meanwhile, net profits of HCMC-based Saigon Port JSC surged 155 percent year-on-year. The company currently runs many ports in the city, including Tan Thuan, Tan Thuan 2, Nha Rong, Khanh Hoi and Sai Gon-Hiep Phuoc.
Dong Nai Port JSC in the southern province of Dong Nai saw revenues and profits increase 38 percent and 35 percent, respectively between January and June.
Profits of Cam Ranh Port JSC in the central province of Khanh Hoa, and of Quy Nhon Port JSC in the central province of Binh Dinh surged 118 percent and 93 percent, respectively.
Gemadept Corporation’s management board estimated its first-half revenues at over VND1.4 trillion, up 19 percent, and pre-tax profits of some VND390 billion, up 38 percent. The firm owns four ports in the northern region, one port in the central area and three ports in the south. It plans to increase its share in the Vietnamese port market from 11 percent in 2020 to 19 percent in 2021, and 23 percent in 2025.
Like seaport operators, maritime transport service providers turned profits in the first half of this year, mainly thanks to market recovery and larger freights.
“It plans to increase its share in the Vietnamese port market from 11 percent in 2020 to 19 percent in 2021, and 23 percent in 2025.”
Maritime transport units of VIMC started making profits after a long period of losses. Vietnam Ocean Shipping JSC (Vosco), which suffered losses of nearly VND120 billion in the first half of last year, recorded after-tax profits of more than VND220 billion in the first half of this year, the highest since 2009.
Meanwhile, Hai An Transport and Stevedoring JSC, has been estimated to see pre-tax profits in the first half of this year more than double.
According to VIMC, the quick recovery of Chinese, U.S. and European economies amid Covid-19 outbreaks led to bigger demand for goods and materials, positively affecting the international sea transport market.
Data from the General Statistics Office showed Vietnam’s import-export turnover stood at nearly $320 billion in the first half of this year, increasing over 32 percent against the same period last year. The volume of goods through seaports surged, with container outputs rising 24 percent.
In early July, Drewry World Container Index (for container freight) stood at $8,399, surging 346 percent against the same period last year.
According to the Vietnam Association of Seafood Exporters and Processors, at some ports, freight in mid-2021 doubled that of late 2020 and rose nearly six times against early 2020.
Questions & Answers
Q.What is driving the increased profitability for seaport and maritime transport firms in Vietnam?
What is driving the increased profitability for seaport and maritime transport firms in Vietnam?
A market recovery and larger freights are the primary reasons for the improved financial performance. This is further supported by the quick recovery of Chinese, US, and European economies amidst Covid-19 outbreaks, leading to greater demand for goods and materials.
Q.How much has container output at Vietnamese seaports increased during the first half of this year?
How much has container output at Vietnamese seaports increased during the first half of this year?
The volume of goods passing through seaports has surged, with container outputs specifically rising by 24 percent. This significant increase contributes to the overall profitability reported by firms in the sector.
Q.Which specific companies are mentioned as having achieved significant profit increases?
Which specific companies are mentioned as having achieved significant profit increases?
VIMC doubled its consolidated profits, while Saigon Port JSC saw its net profits surge by 155 percent. Dong Nai Port JSC and Cam Ranh Port JSC also reported substantial profit increases of 35 percent and 118 percent respectively.
Q.What are Gemadept Corporation's future plans for its market share in the Vietnamese port sector?
What are Gemadept Corporation's future plans for its market share in the Vietnamese port sector?
Gemadept Corporation aims to significantly increase its market share in the Vietnamese port market. It plans to grow from 11 percent in 2020 to 19 percent in 2021, and further to 23 percent by 2025.
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