Project on development of Vietnam's shipping fleet until 2030 in Vietnam

Project on development of Vietnam's shipping fleet until 2030 in Vietnam (Internet image)

The project to develop Vietnam's shipping fleet will be implemented from 2022 to 2030, divided into 2 phases as follows:

1. Project on development of Vietnam's shipping fleet in the period of 2022 - 2026

1.1 Reform of mechanisms and reform of administrative procedures 

- Continuing to promote administrative reform in the field of shipping and the application of science and technology in handling administrative procedures;

- Continuing to review, amend, and supplement the system of legal documents in Vietnam for sea transportation, creating a stable and favorable legal corridor to support enterprises ability to operate effectively. In the immediate future, focus on amending legal documents on the purchase and sale, registration of ships, price management of maritime services, and management of container transport activities of foreign shipping lines in Vietnam;

- Studying and developing regulations on coastal ships for cargo ships running along the coasts of Vietnam and other countries in the region to enhance connectivity, reduce road load, improve safety and efficiency of sustainable exploitation, and aim to connect coastal transport in the region;

- Amending regulations on licensing of ships flying the Vietnamese flag in the direction of the Minister of Transport to decide on the permission to fly the Vietnamese flag for seagoing ships transporting container goods in special cases but not older than 17 years old;

- Allowing newly built container cargo vehicles with propellers and a length less than 92m, connecting seaports with inland waterway ports to be exempt from maritime pilots and tugboats when docking;

- Promoting international cooperation on the sea, participate in international conventions, and bilateral and multilateral transport agreements; Support in legal procedures for Vietnamese enterprises to expand their agents abroad; Finalize the Coastal Transport Agreement with China, Thailand, and Cambodia;

- Every year, the Vietnam Maritime Administration organizes the Vietnam Shipping Forum and issues the annual report on Vietnam's shipping with the goal of creating a dialogue environment, updating information, and orienting information on important and urgent issues about the situation of domestic and international shipping;

- Consolidating and improving the role of Vietnam Shipowners Association, Vietnam Shippers Association, Vietnam Logistics Service Enterprise Association so that these Associations have substantive power to represent their members; raise their position and role and closely connect the Associations with each other, promote collective strength, and support each other;

- Applying competitive offer form according to international practices for enterprises when purchasing ships using state capital in order to be consistent with the reality of ship trading activities.

1.2 Financial solutions

- In order to reduce the financial burden at the time of investment, it is allowed not to apply VAT when importing seagoing ships transporting goods to Vietnamese ship owners until the end of 2026;

- Exemption of import tax and 50% reduction of tonnage fees when ship owners buy and operate container ships of 1,500 TEUs or more or ships powered by clean energy such as LNG... and LNG carriers;

- Exemption from personal income tax for Vietnamese seafarers working on ships operating on domestic routes.

1.3 Ensuring maritime safety, maritime security, maritime labor, and preventing environmental pollution

Continuing to implement the contents of projects and master plans on maritime safety and security approved by the Ministry of Transport; continuing to implement effective solutions to maintain the Vietnamese fleet in the white list of the Agreements on port-state inspection Tokyo MOU, PARIS MOU...

1.4 Improving the quality of crew members

- Continuing to implement the crew training program in accordance with the requirements of STCW Convention 78 as amended in 2010 and the IMO Model Courses;

- Strengthening coordination and connection between the seafarer user unit and training and training institutions to ensure that the personnel have knowledge and skills close to the actual needs of the job and effectively use the trained human resources;

- Recognition of seafarers as a key labor source according to the IMO's recommendations in Circular No. 4204/Add.35 dated December 14, 2020.

At the same time, specialized legal documents need to be reviewed, amended in detail in Appendix I and Appendix II issued together with Decision 1254/QD-BGTVT.

2. Project on development of Vietnam's shipping fleet in the period 2026 - 2030 in Vietnam

- Developing an appropriate model of shipping management to improve the state management of maritime affairs in the field of shipping and maritime services.

Continuing to improve mechanisms, policies, and legal documents in line with international treaties to which Vietnam has recently joined or is a member is suitable with the new development situation of the maritime industry.

- Focusing on supporting a number of Vietnamese container shipping lines that are strong enough to reach out to international markets as far away as Japan, Korea, India, and possibly Europe and America.

There are mechanisms and policies to support allied and associated shipping lines in container cargo operations to improve the size of enterprises, their financial capacity, etc., to increase their competitiveness with foreign shipping lines.

- Strictly implementing and pioneering the implementation of Action Plans and Programs to fulfill Vietnam's commitments at COP 26.

Continuing to have strong support solutions for ship owners to convert their existing ships to clean fuel ships according to Vietnam's commitment schedule at COP 26 on cutting greenhouse gas emissions and net emissions to zero.

- Promoting research and application of science and technology in research, building, repairing, and converting ships to gradually master technology and modernize Vietnam's shipbuilding industry in line with the commitments of COP 26 .

- Continuing to exempt import tax and 50% tonnage fee when ship owners buy and operate container ships of 1,500 TEUs or more or ships powered by clean energy such as LNG, H2, ... and LNG carriers, until the end of 2030.

More details can be found in Decision 1254/QD-BGTVT effective from the date of signing.

Nhu Mai

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