VietNamNet Bridge – The Ministry of Transport has decided that
from January 1, 2013, Vietnam will not renew the container transport licenses
and will not grant new licenses to the ships which do not bear Vietnamese
flags.
More jobs to Vietnamese shipping agents
The decision aims to protect the
Vietnamese fleet which is facing big difficulties due to the capacity
abundance.
With the decision, about 20 ships
bearing foreign flags with the total tonnage of 500,000 DWT, running on
domestic container routes, would be locked out.
Bui Thien Thu, Deputy Head of the
Vietnam Maritime Bureau, affirmed that the decision absolutely comes in line
with the Maritime Law and the WTO commitments on protecting the transportation
rights of member countries.
Vietnam attempts to claim back 1
trillion dong from foreign ships
Once foreign ships are prohibited
to run on domestic routes, they would not be able to earn one trillion dong a
year, which also means that the sum of money would fall into the hands of
domestic fleet.
In the past, the Ministry of
Transport allowed foreign ships to provide shipping services on domestic
container routes because the domestic ships then neglected the domestic market,
while they were busy making money on international routes.
However, since the international
shipping market has fallen into recession due to the weak demand, domestic
ships have to return home to look for jobs on the home market. Meanwhile, it is
not easy to regain the domestic market which has been controlled by foreign
shipping firms.
According to Do Xuan Quynh,
Secretary General of the Vietnam Shipowners’ Association, at least two
container ships with the tonnage of 1000 TEU have been left idle, while the
figure would be higher by the end of the year, when the Vietnam National Shipping
Lines (Vnalines) receives three new container ships.
Thu said, due to the unprofitable
business, a lot of shipping firms like Vinalines or Bien Dong (East Sea) have
to sell ships. The Vietnamese fleet, which had 32 ships earlier this year, now
has 24 ships only. Some ships have been chartered to foreigners at very low
fees, while others have been left idle for the last many months.
Thu, while applauding the
decision by the Ministry of Transport, has affirmed that the Vietnamese fleet
is quite capable to satisfy the domestic demand and take over the jobs left by
the 20 foreign ships.
Goods owners feel worried
While the Vietnamese ship owners
feel excited about the new decision, Vietnamese goods owners feel worried
stiff.
Secretary General of the Vietnam
Goods Owners’ Association Phan Thong said he fears that the decision would
generate the monopoly. Once the market is controlled by domestic shipping
agents, they may raise difficulties to ship owners.
A representative of the Vietnam
Textile and Garment Association (Vinatex) said that the closing of the door to
foreign ships may not be the proper solution to help improve the Vietnamese
fleet’s capacity.
He said that Vietnamese shipping
agents have been less favored by domestic goods owners because they still
cannot provide good services. Especially, in many cases, they cannot deliver
goods on time and they charge overly high fees.
Deputy Minister of Industry and
Trade Tran Tuan Anh has expressed his worry that if Vietnamese enterprises have
to bear higher freights, their exports would be less competitive in the world
market.
In theory, the Vietnamese fleet
has abundant capacity; however, this does not mean that it’s easy to find
service providers. It may happen that Vietnamese ships, which previously aimed
to serve on international routes, cannot dock at Vietnamese ports. In other
cases, they would refuse to provide services if the volume of cargoes is
modest.
“If so, the export would go
stagnant, and Vietnam would lose important markets,” Anh said.
SGTT
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