Vietnam Maritime Corporation – VIMC is preparing for a decline in sea shipping demand in the current year, attributed to heightened global geopolitical tensions adversely affecting the industry.
CEO Nguyen Canh Tinh emphasized during a company meeting on Thursday that various factors, such as drought conditions in the Panama Canal and a rise in attacks on commercial vessels in the Red Sea and Suez Canal, are expected to disrupt global supply chains and shipping operations.
The state-owned VIMC faced challenges in 2023 with low demand from the U.S. and Europe, coupled with local businesses maintaining high inventory levels, prompting many shipping firms to reduce operational costs, he noted.
Increased competition from private firms and the inauguration of new ports in the region have added further challenges, according to Tinh.
In the previous year, the state-run group transported 20 million tons of goods and oversaw 113 million tons passing through its ports, the latter experiencing an 8% decline from 2022.
Overall company revenue decreased by 9% to VND17.96 trillion, and profits saw a 32% decline to VND2.08 trillion. VIMC aims for a 4% profit growth this year, approximately VND2.17 trillion.
Presently, the company operates 59 ships, including 10 container vessels, constituting 21% of Vietnam’s total fleet. Additionally, it manages 89 wharves, representing 15% of the country’s total.