Samsung Heavy Industries Partners with PetroVietnam to Build Oil Tankers in Southeast Asia

Samsung Heavy Industries (SHI) has announced a strategic partnership with PetroVietnam, marking a significant expansion of its operations in Southeast Asia. This collaboration aims to establish Vietnam as a regional shipbuilding hub, combining SHI’s advanced design and technology with PetroVietnam’s industrial infrastructure.

The partnership focuses on constructing oil and chemical tankers in Vietnamese shipyards. Key components of the agreement include:

• Technology transfer
• Workforce training
• Localization of tanker production

Initially, the venture will prioritize medium-range (MR) tankers, which are in high demand across Asia. Over time, production is expected to expand to larger Suezmax tankers.

The deal is a major boost for Vietnam’s state-owned shipbuilding sector, which has struggled in recent years due to debt, delays, and inefficiencies. By working with a global leader like SHI, Vietnam aims to enhance technical expertise, improve production efficiency, and increase its global competitiveness in the tanker market.

For SHI, the partnership offers a cost-effective production base outside South Korea, where labor and energy costs are rising. It also diversifies SHI’s business beyond its Chinese facilities, following the collapse of a previous collaboration with Russian shipbuilders due to the Ukraine conflict. Additionally, this agreement strengthens SHI’s position against domestic competitor HD Hyundai Heavy Industries, which already operates a shipyard in Vietnam.