South Korea’s Samsung Heavy Industries is expanding its presence in Southeast Asia through a newly announced strategic partnership with PetroVietnam, signaling a key move in Vietnam’s efforts to position itself as a regional shipbuilding hub.
The collaboration will center on the construction of oil and chemical tankers at Vietnamese shipyards, combining Samsung Heavy’s advanced design and technical expertise with PetroVietnam’s industrial infrastructure and domestic capabilities.
The deal is expected to revitalize Vietnam’s state-owned shipbuilding sector, which has faced setbacks in recent years due to debt, project delays, and operational inefficiencies. By partnering with one of the world’s leading shipbuilders, PetroVietnam aims to enhance local know-how, increase productivity, and boost competitiveness in the global tanker market.
Key elements of the agreement include:
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Technology transfer
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Workforce training
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Potential for localized construction of tankers
Initial production will likely focus on Medium Range (MR) product tankers, a segment in strong demand across Asia. Over time, the partners plan to scale up to building tankers as large as suezmax class.
For Samsung Heavy, the venture provides a cost-effective production base outside South Korea, where labor and energy costs are rising. The move also diversifies its operations beyond existing facilities in China, especially after earlier plans to partner with Russia’s top shipbuilder collapsed following the full-scale invasion of Ukraine.
The partnership also positions Samsung Heavy competitively against HD Hyundai Heavy Industries, a domestic rival that already operates a shipyard in Vietnam.