The Vietnam’s shipbuilding sector needs at least US$1.44 billion to modernise its operations and import advanced technology in order to raise its competitiveness. Recently, the Vietnam Shipbuilding Industry Corporation (Vinashin) has borrowed US$99.8 million from the Chinese Government to build a shipyard in Dzung Quat Industrial Park in the central province of Quang Ngai. The modern shipyard, expected to become operational in 2008, will be able to build large seagoing ships, including 300,000-DWT ships and 100,000-DWT oil tankers, and repair 600,000-DWT vessels.

In order to upgrade the shipbuilding sector it is planned to get the required funds from different sources, including US$698 million from joint ventures, US$52.1 million from foreign loans and the remaining US$689.9 million from local sources. Vietnam and Singapore have already discussed in the past ways to forge closer economic ties. Vinashin actively pursues other business relations.