20120531 vietnam offshore maritime v3
TRANSCRIPT
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Vietnam Offshore Maritime sector 18th June 2012 Tran Hai Anh (MSc., MBA) – Senior Market Adviser
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Content 1. Cluster Conditions 2. Demand conditions 3. Industry Rivalry 4. Factor conditions 5. SWOT 6. Conclusion and recommendation
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Cluster conditions
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Main players
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SHIPBUILDERS:
• Vinashin • PetroVietnam • Navy shipyards • Foreign shipyards
DOMESTRIC SHIPOWNERS:
• PetroVietnam • Vietsovpetro • Vinalines • Petrolimex • Au Lac • Ministry of National Defense
FOREIGN SHIPOWNERS:
• DOF • Farstad shipping • Densa • Norden • Geden • HMM • DSL Kumpula • Ezra Holding • German Briese
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Shipbuilding Clusters
• Northern cluster: bulkers, containers, tankers, multi-purpose vessels, etc. up to 100,000 DWT.
• Center cluster: tankers, bulkers, multi-purpose vessels, navy vessels, etc. up to 300,000 DWT.
• South cluster: bulkers, offshore vessels, containers, etc. up to 50,000 DWT.
• Vung Tau offshore shipbuilding sub-cluster: offshore vessels and rigs.
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Northern shipbuilding cluster
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The Northern shipbuilding cluster has no existing offshore shipyard
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The Centre shipbuilding cluster
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• Dung Quat shipyard is going to build rig and submersible • Huyndai-Vinshin shipyard is the most busy shipyard in Vietnam
DUNG QUAT SHIPYARD 400,000 DWT TANKER
SONG THU SHIPYARD FOR LIGHT VESSEL
HYUNDAI VINASHIN
CAM RANH SHIPYARD 30,000 DWT VESSEL
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The South shipbuilding cluster (excl. Vung Tau)
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• PTSC shipyard is going to build offshore vessels for PTSC • Saigon Shipyard (Triyard) builds offshore vessels for Ezra Holding
CA MAU SHIPYARD FOR HANDYSIZE
76 SHIPYARD FOR HANDYSIZE
SHIPMARINE SHIPYARD FOR HANDYSIZE
SAI GON SHIPYARD FOR HANDYSIZE
PTSC SHIPYARD FOR HANDYSIZE
SOAI RAP SHIPYARD FOR HANDYSIZE
CAN THO SHIPYARD FOR HANDYSIZE
HAU GIANG SHIPYARD FOR HANDYMAX
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Vung Tau offshore shipbuilding cluster
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Offshore shipbuilding:
STXovs, Strategic marine,Sofel, PV
shipyards, Vinalines shipyard.
Oil and Gas industry:
VietsoPetro, PVN, Farstad,
DOV, PVD
Subcontractors:
Goltens, Rolls Royce,
PTSC
Suppliers: PTSC, Brodrene Dahl, Maritime
Interior
Finance, banking service:
BIDV, HSBC, VCB.
Ship classification
services: DNV, Loyd,
NYK Logistics: Palnalpina,
DHL, AGILTY, Shanker,
Brokers: PVFC,
Wihemsen. Safety
service: Mermaid safety.
Insurance: PVI, Loyd,
Dloite.
Education & training: PV
training centre, Maritime
university, DNV, BV, URS.
Offshore Ship&rig owners:
Vietsopetro, PVD, Petronas,
KNOC, BP, Chervon
HR service: IZ, Navigos,
Net Viet, Erns Young, KPMG,
DNV.
Ship management:
SBM, Modec
Ports: Cai Mep-Thi Vai,
Ben Dinh- Sao Mai, My Xuan, Go Dau, PTSC,
Vietsopetro
Source: Tran Hai Anh - Do Anh Tuan, Innovation Norway Hanoi
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Demand conditions
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Vietnam Order Book up to Mar. 2011
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Unit: No of vessel
Source: Tran Hai Anh - Innovation Norway Hanoi
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Status by kind of vessel (up to Mar. 2011)
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Unit: No of vessel
Source: Tran Hai Anh - Innovation Norway Hanoi
None of offshore service vessels was cancelled or on hold 43% of bulker and 67% of tanker were cancelled or on hold
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PTSC’s AHTS Development Plan
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2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
• 2012-2025: build/purchase 30 AHTS
• 7,000 HP – 10,000 HP;
• Prefer to build these AHTS at PTSC shipyards;
• Seeks for foreign investor(s) to develop PTSC shipyard.
• Seeks for foreign expertise to build AHTS;
• Further information: www.ptsc.com.vn
Source: Nguyen Hoang Hai Minh, Deputy Director, PTSC shipyard
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PV Shipyard Projects
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Source: www.pvshipyard.com.vn
• Assist tender barge for PVD, (250 meters water depth).
• 400ft Jack-up for VietsoPetro
• 90 meter jack-up rig for VietsoPetro.
• 60 meter drilling jack-up rig project for PetroVietnam.
• Semi-submersible for Vietsopetro (?)
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Vietsopetro Project
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• Re-tender for the construction of a semi-submersible drilling unit.
• Seeking to buy or build heavy lift construction vessels of up to 3,000 tonne.
• The 60-metre Warstilla-designed DSV under construction at a shipyard in Batam is due for delivery
• Investing in more rigs to replace the drilling units it has on charter from third-party contractors
• Teamed up with Bumi Armada to develop and operate a floating production, storage and offloading vessel
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Triyard projects
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• H0705 self propelled jack-up rig
• H0706A self propelled jack-up rig
• H0706B self propelled jack-up rig
• H09026000 T oil tankers
• H1002 178 m sub-sea pipe laying vessel DP3
• H1007 29m ASD Tug boat
• H1008 29 m ASD Tug boat
Source: www.triyards.com
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STX Projects • Six Aker DOF AHTSs were handed over • Three Farstad ships, Platform Supply under construction • Coming project?
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Vietnam Shipbuilding Rivalry
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Existing Shipbuilders Hyundai –Vinasin shipyard: Procurement done in Korea Damen:
Partnership with Song Thu shipyard to outsource new-building works plus total solution package.
Partnership with Song Cam shipyard (under Vinashin) to outsource new-building tub-boat plus total solution package.
Provide total solution package for PTSC on building tugboat
Use Helmers for interior package
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Existing Shipbuilders (cont. 1) Triyards:
Built ships for its mother company (Ezra Holding) and start to look for external order;
Quality and price-driven procurement; Marc-Plan is used for supplying interior package.
STX OV Quality and price-driven procurement; STX Accommodation Vietnam is used for interior
package. Oshima’s shipyard is under construction in Khanh Hoa
province.
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Existing Shipbuilders (cont. 2) PTSC shipyard
Under construction; Ambition of building ship for its mother company; Price-driven procurement (under law of
tendering). PVshipyard
Build rigs/platform for its mother company: PetroVietnam/Vietsopetro;
Price-driven procurement (under law of tendering).
Dung Quat shipyard: Price-driven procurement (under law of tendering).
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Existing Shipbuilders (cont. 3)
Navy shipyards: trust, quality and price-driven procurement.
Vinashin shipyards:
price-driven procurement (under law of tendering).
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NME’s group at STX OV, Vung Tau – Photo: Eivind Petershagen, Innovation Norway Oslo
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Offshore Ship Owners • PVD: Price-driven procurement (under law of tendering). • Vietsopetro: Price-driven procurement (under law of
tendering). • PTSC: Price-driven procurement (under law of tendering). • Foreign operators: Trust, quality and price –driven
procurement.
25 Cat Lai Port – Photo: Innovation Norway Hanoi
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Tanker Shipowners Petrolimex: Price-driven procurement (under law of
tendering). PVTrans: Price-driven procurement (under law of
tendering). PV oil shipping: Price-driven procurement (under law of
tendering). Au Lac: private ship-owner, price and quality-driven
procurement. Gas shipping: Price-driven procurement (under law of
tendering).
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Other Shipowners Vinalines: Price-driven procurement (under law of
tendering). Navy ship-owners: trust, quality and price-driven
procurement.
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STX OV Opening Ceremony – Photo: Kjell Arne, Innovation Norway Hanoi
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Market analysis
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Market has low entry barrier and low exit barrier Customer holds the power High customer’s possibility of switching from placing new order
inside Vietnam by shopping ready-made/under construction products in the global market
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Set up long term partnership with ship-owner(s)? Set up long term partnership with shipyard(s)? Set up local production facility? Use agent(s) in Vietnam? Use agent(s) in Singapore to cover Vietnam market? Partnership with PetroVietnam’s subsidiaries to provide
services in Vietnam and in the region? Outsourcing for local constructors? M&A?
Possible Entry modes
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Factor conditions
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Country at glance
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Source: www.adb.org
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0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1/1/
2009
2/1/
2009
3/1/
2009
4/1/
2009
5/1/
2009
6/1/
2009
7/1/
2009
8/1/
2009
9/1/
2009
10/1
/200
9
11/1
/200
9
12/1
/200
9
1/1/
2010
2/1/
2010
3/1/
2010
4/1/
2010
5/1/
2010
6/1/
2010
7/1/
2010
8/1/
2010
9/1/
2010
10/1
/201
0
11/1
/201
0
12/1
/201
0
1/1/
2011
2/1/
2011
3/1/
2011
Base rate Refinancing rate Discount rate
Economy Outlook
32 Source: www.adb.org
Interest rate (%)
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Investment Related Costs Hanoi Da Nang Hochiminh City Wage (manufacturing) Full time worker (basic montly salary) 104 $ 87 $ 100 $
Full time engineer (basic montly salary) 287 $ 180 $ 293 $
Full time manager (basic montly salary) 822 $ 221 $ 670 $ Legal minimum wage 95 $ 95 $ 95 $
Social security burden Employer burden rate - Social insurance 16% 16% 16% - Health insurance 3% 3% 3% - Unemployment insurance 1% 1% 1% - Trade union fee 1% 1% 1% Employee burden rate - Social insurance 6% 6% 6% - Health insurance 1.50% 1.50% 1.50% - Unemployement insurance 1% 1% 1%
Energy cost - 95 Petrol 1.1 $/L 1.1 $/L 1.1 $/L - Diesel 1.009 $/L 1.009 $/L 1.009 $/L - Electricity price (average) Uscent 9.5 Uscent 9.6 Uscent 9.7
A Graded Office rent 30-35 $/m2/month 17-19 $/m2/month 25-30 $/m2/month
33 Source: Tran Hai Anh, Innovation Norway Hanoi
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Unit: $ billion
Source: Vietnam economic times
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Strong government ownership o Vinashin is 100% owned by the government o PetroVietnam is 100% owned by the government o Vinalines is 100% owned by the government o 51% of Vietsopetro is owned by PetroVietnam o Ministry of National Defence owns navy shipyards
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Government shows its strong commitment and provides significant support to Vietnam maritime sector
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Strong Development of Oil & Gas activities
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Unit: 103 barrels
Source: BP Statistical Review 2011
Third ranked in Asia – Pacific by Oil reserves Third ranked in SEA region by production of oil and liquid
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DISCOVERED
YET TO FIND
Oil & Gas – E&P situation
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Major oil productions from Cuu Long basin Major gas production from Nam Con Son basin Offshore water depth: 30m-150m
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Vietnam Business Culture
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Vietnam Business Culture
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?
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SWOT -Norwegian Maritime Companies and Vietnam Offshore Shipbuilding
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Norwegian Maritime Companies - Strengths
Strengths • Unique technology • Unique combination (owns the whole
value chain?) • Unique competence? • High accessibility to R&D
achievements • High accessibility to financial sources • Good reputation (good quality and
good attitude)
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Norwegian Maritime Companies Weakness
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Weaknesses • High cost? • More focus on technology than
business? • Sufficient resources to cover Vietnam
market? • Sales/marketing efforts? • Flexibility?
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Opportunities
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Opportunities • Political stability • Member of international organizations (WTO,
ASEAN, IMO, COSPAS-SARSAT, etc.) • EFTA Trade Agreement is under negotiation • Existing domestic demand as the result of
strong oil & gas industry development • Young population with competitive labor cost • Favorable geographical location • Tax incentives for export products • Presents of Norwegian players
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Threats
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Threats • Economic depression • High bureaucracy • Raw materials needs to be imported • High competition from neighbor countries
(China, Singapore, Malaysia, Korean)
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Conclusion and Recommendation
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Conclusions Vietnam offshore shipbuilding is driven by both domestic
demands and external demands.
Strong presents of international players, including Norwegian players, in Vietnam offshore maritime sector.
Norwegian offshore-maritime expertise and technologies are needed.
Coming together make you shaper and stronger
Now is right time to come and see?
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Recommendations
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We are here for help!
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