South Korean shipbuilding companies Hanwha Ocean and HD Hyundai are turning to Vietnam to address their ongoing workforce shortage. Hanwha Ocean recently signed a memorandum of understanding (MOU) with Vietnam’s Ministry of Industry and Trade to enhance cooperation in training and hiring Vietnamese shipbuilding workers. This move comes as Hanwha Group Vice Chairman Kim Dong-kwan joined a business delegation accompanying President Yoon Suk Yeol on his State visit to Vietnam. The MOU aims to meet the demand for workers by supporting vocational training programs within Vietnam’s Ministry of Industry and Trade.
Similarly, HD Hyundai President Chung Ki-sun visited Hyundai Vietnam Shipbuilding’s shipyard in Khanh Hoa as part of the business delegation accompanying the President on his visit to Vietnam. Vietnam has seen significant growth in shipbuilding orders and is known to have a large number of skilled and experienced shipbuilding workers, making them a preferred choice for Korean shipbuilders. The data from the Republic of Korea (RoK) Ministry of Justice revealed that Vietnamese nationals accounted for 55.1% of foreigners who received E-7 visas for shipbuilding-related activities between January 2022 and January 2023.
Vietnam has emerged as a prominent player in the shipbuilding industry, with Hyundai Vietnam Shipbuilding established in 1996. The country now ranks fifth in terms of shipbuilding orders globally. The partnership between South Korean shipbuilding companies and Vietnam will help address the workforce shortage faced by the Korean industry. By hiring Vietnamese workers and collaborating with vocational training institutions, they will work toward strengthening the capabilities of the shipbuilding workforce in Vietnam.
This strategic move highlights the mutually beneficial relationship between South Korea and Vietnam in the shipbuilding industry. It enables South Korean companies to meet their staffing needs while providing employment opportunities for Vietnamese workers. The ongoing cooperation is expected to further enhance Vietnam’s position in the shipbuilding market and contribute to the industry’s growth and development.
Overall, this collaboration demonstrates the importance of international partnerships in addressing labor shortages and fostering economic growth. By leveraging each country’s strengths and resources, South Korean shipbuilders and Vietnam can overcome workforce challenges and create a prosperous future for the shipbuilding industry.
