South Korea to develop container manufacturing site in Vietnam

China’s near 100% monopoly of the container manufacturing business could have an Asian rival soon.

Two South Korean firms – Seojin Systems and Ace Engineering – are constructing a container factory in Haiphong, Vietnam, due to go into operation in the middle of next year. The project is supported by state-run ship finance specialist Korea Ocean Business Corporation (KOBC).

The factory will have an initial output of 4,000 containers a month with HMM, South Korea’s flagship carrier, signed on as a principal early customer.

According to data from KOBC, Chinese factories currently account for 99% of all new containers, something that has been discussed by a number of major economies this year during 2021’s supply chain troubles, including by politicians on Capitol Hill in Washington DC.

“To strengthen the competitiveness of local shipping companies, KOBC will continue to carry out container lease support projects, while continuing to diversify domestic and overseas sources to secure container supply,” the Korean ship financier stated in a release.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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