Dung Quat Inks $200m Freighter Deal

The Dung Quat Shipbuilding Industry Corporation and the Oil and Gas Shipping Investment Joint Stock Co on Tuesday signed a contract to construct ten 54,000-DWT freighters in a deal worth about $200 million. The vessels were designed by the Shipbuilding Science and Technology Institute, and are 190m long and 32m wide. Dung Quat Shipbuilding Industry Corp is expected to complete the first freighter by June 2008, and the remaining nine in four month intervals there after.

Last month, Dung Quat Corp began building a 104,000 DWT oil tanker, which will be the largest such vessel ever made in Viet Nam when completed. Christened "Dung Quat 1", the ship will be 245m long and 43m wide, and cost $56 million. Dung Quat Shipbuilding Industry Corp was not the only company to sign a construction contract this week, with the Oil and Gas Shipping Investment Joint Stock Co and the Bach Dang Shipbuilding Co inking an agreement on November 6. Bach Dang will build ten 22,500-DWT freighters. According to the Government’s master plan, Viet Nam will have a shipbuilding industry that will rival regional competitors in terms of technology and output by 2010. The proportion of locally made products by domestic firms will grow to 60-70 per cent by 2010, effectively serving the plan to promote export and create good conditions for other industries of the nation to develop. Source: Vinashin