Developing the Merchant Fleet of Haiphong in the Time of Joining into AEC of Vietnam

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1 Developing the Merchant Fleet of Haiphong in the Time of Joining into AEC of Vietnam Dr. Vu Thi Minh Ngoc, School of Trade and International Economics, National Economic University, Vietnam. Bui Thi Thanh Nga, PhD. Candidate, Economics Faculty, Vietnam Maritime University, Vietnam. Abstract In the case of AEC is coming into force, the maritime transport enterprises are facing the new challenges and chances as well. The research has used the term Haiphong merchant fleet to mention to the Haiphong enterprises which have owned the ships carrying the domestic and international goods. The study of the current situation of the Hai Phong merchant fleet will help assess the competitiveness of Haiphongmaritime transport and also assess the opportunities and challenges that AEC brings to the shipowner business. Of Hai Phong. The solutions from the government and enterprises were proposed to develop Hai Phong merchant fleet, contributing to the development of the shipping industry and the overall development of Haiphong towards the international intergration. Key Words: Meerchant fleet, Hahphong, AEC JEL Classification : C 19, G13, G 14 1

2 1. Introduction In 2016, the AEC comes into effect. This is an opportunity for Vietnamese enterprises to expand their market and reach out to ASEAN and the world market. In terms of Haiphong maritime transport enterprises, AEC creates great opportunities, but also bring a lot of challenges when the capacity of the Haiphong merchant fleet does not meet the requirements of the international market.as a result, its competitiveness in the international market is rather lower than the others. A study of the current state of the Haiphong merchant fleet will offer managers and shipowners in Haiphong a full context of the business in this field, therefore they could easily find their way to enhance their competitive compentancy when the AEC is coming into force and affects the socio-economic aspect of Southeast Asian nations. 2. The Theory of Local Merchant Fleet Vessel is a specialized aircraft operating on the sea (Vietnamese Maritime Code, 2015). Vessels are used to carry goods, luggage and passengers. Those exclude military forces, public ships, ships, shipping addresses, submarines, seaplane, floating depots, barrels, prominent.merchant fleet is a system of vessels that carry cargoes, luggage, passengers by sea. It is an indispencible trend to transport goods by sea because over 80% of them is carried by ships. Therefore, any countries that own a strong merchant fleet will be more competive in global trade and international negotiation. There is only concepts of national merchant fleet not local merchant fleet and there is also no regulation about it. The local merchant fleet is known as two aspects hereunder: (i) ships registered for operation in one locality; Or (ii) the owner's vessel is registered in the locality. In this paper, the authors will take the second perspective into consideration. Thus, the assessment of local fleets will be based on how many local owners there are, the number of ships owned by the shipowners, as well as the vessel age, the ship tonnage and the shipping lanes. Which locality owns more large-sized vessels, young ships, capable of running on important international sea lanes, that locality will be more competitive in maritime transport and thereby increase GDP. Haiphong is a coastal city, therefore, the development of the Haiphong fleet will need to be considered as a nessary element in the overall development policy for Hai Phongmaritime business. 3.Research Method 3.1 Questionairs In this study, the authors would like to explore three issues, including: (i) Current situation of Haiphong merchant fleet; (ii) Opportunities and challenges that Haiphong merchant fleet has to face when the AEC comes into effect; (Iii) what should be done to develop the Haiphong merchant fleet towards international economic integration in general and in AEC in particular. 2

3 3.2 Methodology To find out about the current situation of Hai Phong's fleet, the authors used the Vietnam Maritime Bureau's updated fleet data up to February 2017, filtering ship owners' data into its characteristics. In addition, the authors also conducted a survey of shipping businesses in Hai Phong, including 3 port enterprises, 24 shipping companies, 13 manufacturing companies. The rest of the survey data included import and export enterprises in line of forwarding, transportation, customs clearance, cargo insurance, warehouse business. More than half (59%) of surveyed companies have been run in the market for at least 5 years. In terms of the enterprise types, there are 6 surveyed ones which are including 6 of them are the 100% foreign invested companies, 6 of them are the private enterprises, 1 is joint venture company, 1 is partnership company, 48 are limited liability companies and 43 are joint stock companies. The data collected are used to assess the current state of the maritime transport industry in Haiphong, the opportunities and challenges that the Hai Phong shipping sector, including the difficulties of Haiphong merchant fleet has to face when Vietnam joins the AEC. The authors have proposed the solutions to develop the Haiphong merchant fleet, contributing to the development of the martitime transport industry - a key economic sector of Hai Phong city. 4. Current Status of Haiphong Merchant Fleet Haiphong is very convenient geographically for martitime transport industry. Many major shipping companies have registered in Hai Phong such as Vosco, Vinaship, Germatrans, Vinalines, Vitranchart, Vietfract... Most of the large shipping companies in Vietnam has a branch or a representative office as well in Haiphong. 4.1 Ship Owners: According to the Vietnam Maritime Bureau data, by 2016, there are 1059 registered ships in 493 companies from 24 provinces in the country. Shipowners from Hai Phong still occupy a large number of 145 shipowners and 293 vessels. Thai Binh is the second largest shipowner (with 94 shipowners and 157 vessels). Hanoi occupied the second position (with 56 shipowners and 216 ships). In addition, Nam Dinh, Nghe An, Quang Ninh, Ninh Binh, Ho Chi Minh City are also home to many shipowners with a large number of vessels registered in Hai Phong. However, in terms of the number of ships owned by Haiphong, the fleet of the Hai Phong fleet has 296 vessels with a total of 146 shipowners, of which two are registered in Hochiminh City. The Haiphong fleet occupies about 15% of the total number of registered ships nationwide, with a total tonnage of nearly 1.9 million DWT (accounting for 24.6% of the tonnage tonnage of the Vietnamese fleet). Of the more than 140 shipowners operating in Hai Phong, there are 9 owners of ships with a tonnage of over 10,000 DWT, with a total of 40 vessels with a tonnage of over 10,000 DWT. Transportation with a total tonnage up to more than 1.28 million DWT accounting for 3

4 68% of the total tonnage fleets in Hai Phong. Led by Vietnam Shipping Joint Stock Company (VOSCO) with 17 vessels of 453,045 DWT, including 11 ships with a tonnage of over 10,000 DWT. The list of companies that own the largest fleet in Hai Phong can be found in the following table Table 1: Haiphong Shipowners with Over DWT No Ship owners Total amount Total active amount Total Deadweight ton Average deadwweight ton 1 VOSCO , ,7 2 VINASHIP , ,9 3 H.P.C VIPCO , ,8 5 PHARUNG TANBINH , ,6 7 HAIPHONG , ,2 8 DAIDUONG , ,9 9 TRUONGMINH , ,9 Tótl ,3 Source: Authors statistics from the Vietnam Maritime Bureau 4

5 According to statistical data, most of the vessels' owners have at least 30% of vessels with a tonnage of over 10,000 DWT on the total number of ships registered in Haiphong. The average tonnage of nine shipowners is over 22,000 DWT, of which 5 are owned by 5 ships of over 10,000 DWT. 4.2 Ship Types Haiphong merchant fleet mainly consists of composite cargo ships, with 156 vessels, accounting for 52.7% of the total number of ships in Hai Phong and accounting for 32.8% of total tonnage ship. Specialized cargo ships account for a small proportion of the total number, of which container ships have only five, accounting for 1.7% of the number of ships and 1.8% of the total tonnage of ships owned by Vietnam Shipping Joint Stock Company (2 units, built in Japan since 1997, 1998 with the averagetonnage over 8500 DWT), Trading and Transportation Joint Stock Company Atlantic Ocean Shipping (one built in Korea in 1996 with a capacity of 6,800 DWT), Nam Trieu Shipping Company Limited (2 units, builtin Hai Phong in 2011, 2012 with 4751, 6 DWT for each) Table 2: Characteristics of Haiphong Merchant Fleet in Types Types of ship Quantity Deadweight tonnage (DWT) of Quantity (%) of Bulk carriers ,1 11,49% 44,54% Dry cariers ,98 3,72% 0,72% General cargo carriers ,26 53,38% 32,78% Oil tanker ,3 7,09% 17,05% Container ,96 1,69% 1,81% Others ,4 22,64% 3,1% Total ,0% 100,0% Source: Authors statistics from marine database of Vietnam Maritime Bureau Vietnam It can be seen that the structure of Haiphong merchant fleet is not quite fit for the global trend and demand. The reason is thatthe general cargo tends to decrease due to the low productivity, long time for loading and unloading. Specialized vessels such as bulk carriers, dry bulk carriers, container ships, liquid carriers, and refrigerated cargo ships are specially designed for each type of cargo. It is flexible in to load and unload cargo and improve the handling efficiency. In addition, the global trend recently is to develop used friendly vessels such as new generation 30% energy-efficient container ships, which use fuels such as liquefied natural gas (LNG) that allows to reduce carbon dioxide (CO2) emissions. However, 5

6 there is not any type of ship in Haiphong as well as in Vietnam. It is the old structure of the ship which is not flexible with the modern development of the world market, that causes the low market share of Haiphong merchant fleet. 4.3 Ship Ages At present, the fleet of ships in Hai Phong still has many old ships, especially one French ship built in 1942 with the capacity of 1200 DWT (by Daiduong Co.Ltd.,) is still used to carry oil. This vessel was registered in Table 3: Fleet Structure by Age of Haiphong Merchant Fleet in 2016 Ages Criteria Total Bulk carriers Dry Carriers Oil Tankers General Cargo Container Others Quantity DWT , , , ,6 8274,93 8,0% 6,8% 0,0% 10,0% 8,0% 14,0% 14,4% Quantity DWT , ,1 3036, , ,2 4751,6 4751,6 30,2% 25,0% 22,5% 14,6% 48,3% 14,0% 8,3% Quantity DWT , , , , ,66 24,3% 20,3% 61,5% 41,1% 18,2% 0,0% 58,4% Quantity DWT , , , ,3 344,57 18,1% 24,6% 0,0% 21,9% 7,5% 51,6% 0,6% Quantity DWT , , , ,4% 20,4% 16,0% 9,6% 14,3% 20,3% 16,8% Quantity DWT , , ,4 2,3% 3,0% 0,0% 1,4% 2,3% 0,0% 0,4% Quantity ver 40 DWT 13405, , ,23 0,7% 0,0% 0,1% 1,4% 1,4% 0,0% 1,1% 6

7 Ages Criteria Total Bulk carriers Dry Carriers Oil Tankers General Cargo Container Others Quantity Total DWT , , , , , ,4 100,0% 44,5% 0,7% 17,0% 32,8% 1,8% 3,1% Source: Authors statistics Vietnam Maritime Bureau Vietnam According to statistics of the Vietnam Maritime Bureau, by the end of 2016, in each age group, young vessels (under the age of 10) accounted for 46.9% of the total number of ships in Hai Phong (of which department stores occupy 69%, bulk carriers accounted for 10.8%, oil tankers accounted for 5%, container ships accounted for 1.4%, dry ships accounted for 0.7% of the total number of young ships in Hai Phong). The average ship age (from 10 to 14 years) accounted for 22.6% of the total number of ships in Haiphong (of which general cargo carriers accounted for 56.7%, bulk carriers accounted for 7.5%, oil tankers accounted for 4.5%, container ships account for 0%, dry cargoes account for 7.5% of the total number) The older ships (aged 15 to 19 years) accounted for 10.5% of the total number of ships in Haiphong (29% for bulk carriers, 19.4% for bulk carriers, 9.7% for oil tankers, container ships account for 6.5%, dry ships account for 0% of the total number). The ships that are too old (20 years and over) accounted for 19.9% of the total number of ships in Hai Phong (25.9% of accounted for general cargo carriers, bulk carriers accounted for 13.6%, tankers accounted for 4, 5%, container ships accounted for 1.7%, dry cargo accounted for 13.6% of the total number). Indeed, the fleet of Hai Phong is in the process of improvement in age, with the number of young and medium (under 15 years) accounted for about 69.6%, and the tonnage accounted for 62.5%. According to the structure of the ship, the number of young and medium ships accounted for the proportion as follows: (1) bulk carrier accounted for 58.8% of the total number, 52.1% of the load in total deadweight tonnage; (2) Dry bulk carriers account for 54.5% of the total number, 84% of the total deadweight tonnage; (3) tankers accounted for 47.6% of the total number, 65.7% of thetotal deadweight tonnage; (4) Merchants occupy 84.8% of the total number, 74.5% of thetotal deadweight tonnage; (5) Container ships account for 40% of the total number, 28% of thetotal deadweight tonnage. The above data shows that the tendency of Hai Phong merchant fleet is quite clear, because most of the general cargo carriers are the young and medium ones, have been newly built from 2002 up to now, including 98,% are built in Vietnam, including the threevessels of about10,000-dwt. This proves that shipbuilding capacity of Vietnamese enterprises have been growing, However, other types of ships, such as oil tankers and bulk carriers, especially 7

8 large vessels are often imported from abroad. Up to 40% of the vessels are imported from South Korea, Japan and Korea with a tonnage of 40,000 DWT, while only one vessel with a tonnage of over 13,000 DWT wasbuilt in Hai Phong. The others have only from 5000 to 8000 DWT. Dry cargo carriers are all built in Vietnam, but the deadweight tonnage is quite small, only about DWT. In terms of bulk carriers, 45% of the ships were imported from Japan (with a tonnage of over 23,000 DWT, except for the only one with the tonnage of up to 53,000 DWT). In this period, shipbuilders of Hai Phong have built large tonnage vessels (including two vessels of 22,000 DWT and one of over 56,000 DWT), that meet the demand of domestics and international transportation of Vietnam. the needs of international cargo transport of domestic carriers. It is clear to see that the structure of Haiphong merchant fleet in young and medium ages mainly focus ongeneral cargo carriers, but the increasing of the other types of ships have also been improved. Hai Phong tends to build large and specialized cargo ships, gradually reduces the import of these types of ships from other countries. 4.4 Transport Capacity The number and capacity of Haiphong fleet have been changing significantly over time, marking the development of Haiphong merchant fleet. Table 4: Development of Haiphong Merhant Fleet Period Number Gross tonnage New Accumulated (ACC) Growth ACC (%) New Accumulated Growth ACC (%) Average tonnage (new) (DWT/ship) Average tonnage (acc) (DWT/ship) Up to , , ,8% % 8403, , ,5% % 5148, ,04098 Source: Authors statistics from Vietnam Maritime Bureau * Note: The data only mentions to the ships registered officially in Vietnam Maritime Bureau, updated by It can be seen thatthe development of the Haiphong merchant fleet is rather fast from the time before 1987 and later on. The opening of the Vietnamese economy has also led to the development of international trade, thereby increasing all means of transport, espeically by sea through international ports such as Haiphon. Therefore, in order to meet the requirements of international trade, Haiphong enterprises have to enhance the capacity of the local ships. The number of ships of Hai Phong businesses increased five times, the 8

9 tonnage of ships increased nearly 20 times comparing to the time before joining WTO. The period is the time of After WTO of Vietnam and preparing to join the AEC. The number of ships increased faster than in the previous period, but the growth rate was not as "spectacular" as it was before, with 88.5% in total ship number and 162% in total gross tonnage. In addition to the issue of increasing the tonnage of shipping, there is also a story of shipbuilding capacity of the factories in Haiphong. Prior to 1986, most of the ship's vessels were manufactured overseas, with only five ships built in Haiphong during this period, and most of the ships had only a small capacity (less than 100 DWT) used for serving the coastal cargo. In this period, Haiphong also built anoil tankers of over 2,000 DWT and is now owned by Hai Phong Ocean Company Limited. 21 vessels operated during this period were belonged to foreign agents, mainly originating in Japan, China, the United States, the Philippines and France. Ships imported from China are mostly small vessels. Specialized bulk cargo vessels are mostly built in Japan, with a capacity of DWT. Oil tankers have a capacity of less than 2000 DWT. Particularly there are bulk carriers built with a capacity of over DWT, built in Japan and now owned by Haiphong Transport and Trading Company. During the 20 years after the opening of the economy, more and more localities participated in shipbuilding to provide facilities for shipping companies in Hai Phong, such as Nam Dinh, Vung Tau, Ho Chi Minh City. However, large tonnage ships (over 5,000 DWT) for cargo transportation such as bulk carriers, departmental cargoes, oil tankers and container carriers are still mainly imported from Foreigners, like from Japan, Korea, China and some other countries. However, shipbuilding capacity of Hai Phong in particular and of other localities in Vietnam has also improved considerably when many of the large vessels are built more. Capacity of vessels located in Vietnam is only over 3,000 DWT, but in 2006, Quang Ninh successfully built and launched multi-purpose cargo ships with a capacity of over 13,000 DWT (currently owned by the Joint Stock Vietnamese Shipping Company - VOSCO). So many general cargo ships were built in 2001, 2002, 2003 with a capacity of over 6,500 DWT. Most of these large vessels are owned by huge shipping companies of Vietnam such as VOSCO, VINASHIP From 2007 up to now, Hai Phong shipowners have focused on improving the shipping capacity of vessels by increasing the vessel's tonnage, gradually eliminating low-capacity vessels. The average tonnage of newbuilding vessels in this period is over 5,000 DWT, of which shipyards in Hai Phong and Quang Ninh have gradually supplied more large vessels for specialized operations that carry domestic and international goods, 7/12 (occupying 58.3%) ships with a tonnage of more than 10,000 DWT newly built during this period belonged to Vietnamese factories (of which Hai Phong has 6 ships with the two of them have the loading capacity of over 22,000 DWT.) The bulk carrier of Vosco in 2013 had a capacity 9

10 of over 56,000 DWT, which is the largest vessel built in Vietnam by the end of Thus, despite the fact that the average weight of the Haiphong merchant fleet is smaller than in the previous period ( ), shipping companies have been upgraded with more diversified and larger vessels. Haiphong has gradually taken on more functions in providing large tonnage vessels and replaced ships imported from other countries. 4.5 Shipping Lanes Haiphong merchant fleet with low capacity and productivity should usually only run domestic routes, or only focus on international lanes in the ASEAN region and Asia. According to the shipping plan of the Hai Phong port authority, most of Hai Phong shipping companies (including agents acting as agents for foreign shipping companies) operate the Hai Phong - Singapore route, Thailand, Indonesia, Malaysia, Cambodia, Taiwan, China, Hongkong (China), Korea, Japan. Béides, only a few ships transport to Europe, such as Russia. However, the number of these vessels run in international lines is rather limited, mainly transport in domestic. Haiphong merchant fleet is not paid enough attention to, so there are still a lot of negatives: average high age, low quality and quantity. Most of these small ships are owned by private companies, limited liability companies, joint stock companies and cooperatives that have just been established within the last few years. Companies that provide inland transportation are often involved in the local Ship Owners Association to assist each other in their work and increase their power. In the area of Hai Phong, local Association of Ship Owners by region for convenient connectivity. Currently, according to the Vietnam Maritime Bureau, in Haiphong there is An Lu-Haiphong Solidarity Transport Association, but most of the shipowners in the Association are private enterprises with only small ships, including fishing vessel. 5. Opportunities and Challenges for the Development of Haiphong Merchant Fleet when Vietnam Joins the AEC * Opportunities First, increase the demand for international shipping services. The transport services market will become more active as the volume of goods flowing between ASEAN countries increases due to the reduction of intra-asean trade protection barriers, as well as the increase of the cargo transported between ASEAN and FTA partners which have signed with major partners such as Japan, Korea, EU, China and other countries. Second, there are more and more investment opportunities in the technical infrastructure of the Haiphong merchant fleet, reduce the technical gap between the fleet of Haiphong and the countries in the region, and also apply the standard techniques in AEC. * Challenge: Firstly, the technical level of the fleet 10

11 Many ships of Haiphong ship owners are kept at the ports of some Southeast Asian and Asian countries such as Indonesia, Philippines, China, South Korea and Malaysia shows the gap of the technical level between Haiphong merchant fleet in particular and Vietnam merchant fleet in genernal, and the foreign ones. Therefore, it is necessary to improve the current state of the ship's technical equipment to meet standards in Southeast Asia so that it can access to the other market. Second, the pressure of non-standardization of ships in accordance with international conventions Up to now, there are only Indonesia, Malaysia, Asia: Japan, Korea... in Southeast Asia that have joined the BWM Convention. Under the provisions of the Convention, a national vessel shall be a party to the BWM Convention and Exemption under the Convention is only permitted for one or more ships operating on only one or all journeys between ports or designated locations if it is allowed to be exempted from installing a ballast water management system in accordance with the A-4 exemption regulation However, as Vietnam is not a party to the Convention, it is difficult to negotiate with other countries to apply the exemption regulation and will not be accepted by the International Maritime Organization as this would be contrary to international practice. 6. Solutions to Develop Haiphong Merchant Fleet Towardsinternational Integration 6.1 Solutions to the State First, enhance administrative reform in the field of maritime transport, especially administrative procedures at seaports and procedures for ship registration; Apply the synchronous application of information technology in maritime activities (electronic port, e- customs...), implement one-door policy to create favorable conditions for vessels to be in and out. The reform of ship registration procedures is also a content that Haiphong enterprises highly aggeed in the survey (with 56.2% agreeing and 16.2% highly agreeing). This meanss that when the procedures and policies are improved, Haiphong shipping enterprises in particular and Vietnam in general may have opportunities to develop in the near future. Second, promote the shipbuilding industry. Shipbuilding is planned to focus on the capacity of domestic shipbuilders and then pay attention to market segments that the Vietnamese merrchant fleet has a potential. Develop the ship repair in addtion to the new ship building services. 11

12 Hình 1: The Solutions for Maritime Transport Enterprises of Haiphong in the Joining AEC of Vietnam % 66.7 % 63.8 % 58.1 % 56.2 % 61.0% 60.0% % 24.8 % 19.0% 7.6 % 7.6 % 15.2 % 29.5 % 10.5 % 26.7 % 16.2 % 24.8 % 12.4 % 21.9 % 17.1 % % 1.0% 1.9 % 1.9 % 1.0% 1.0% 1.0% Younger the fleet age Promote the specialized carriers Connect to the oversea sipping agent Enhance the ship building and auxiliary industries Reform the administrative procedures Apply synchronous information technology Develop the Vietnam and Haiphong ship owers associations Totally disagree Disagree No idea Agree Totally agree Source: Authors data from the survey of Haiphong maritime transport enterprises Third, build up supporting policies for shipping companies, especially relating to fuel prices. In the hard time of shipping companies today, the administration should suggest the incentives for fuel prices, such as allowing businesses to buy fuel from Dung Quat oil refinery, to improve the competitiveness of Haiphong merchant fleet and Vietnamese fleet in general. Fourthly, create mechanisms to encourage the development of Hai Phong Shipowners 'Association and Vietnam Ship Owners' Association. Currently, only major transport enterprises of Hai Phong and Vietnam join the Association of Vietnam Ship Owners, many enterprises have not joined the Association, especially private enterprises. At present, in Hai 12

13 Phong, there are only An Lu-Hai Phong Transport Association, including mainly fishing vessel owners and fishermen around Hai Phong. The establishment of the Hai Phong Ship Owners Association, which is a member of the Vietnam Shipowners' Association, will also provide useful mechanisms to enable Hai Phong shipowners to overcome theon-going and upcoming difficulties. Fifth, enhance the compentency of ship inspection in order to help the Vietnamese fleet generally avoid being detained at foreign ports. 6.2 Solutions for Maritime Transport Enterprises Haiphong Shipping Businesses should be active in developing sustainable business activities. The solutions for Haiphong shipping enterprises include: Firstly, connecting to major shipping companies around the world to find an opportunity to take part in international routes such as Europe and North America. Moreover, the connection to major shipping companies abroad will allow Haiphong ship owners to access capital as well as management experience, operation and technical level from abroad. The trend of linking shipping lines is also taking place among the global major shipping lines such as Japan and China. The connection should also be made between shipowners in Hai Phong and cargo owners. Haiphong shipowners should join the Associations, including the Shipowner Associations and the Freight Forwarders Association... to have assistance at the right time. Second, increase capital investment for the large well- equipped fleetand ability to run long distance. The capacity of Haiphong shipowners is relatively low due to their low capacity and productitive. In order to access overseas markets, the enterprises have to afford it. It is necessary to improve the fleet structure towards increasing capacity, modern equipment, well- equipped with modern IT. Third, improve business plans in the context of many international maritime conventions are coming into force in South East Asia and in Vietnam. In September/2017, the International Convention on Ballast Water and Wastewater Management 2004 (BWM) officially came into force, makingvietnamese shipowners difficult to access international ports. Therefore, enterprises themselves must still prepare the alternatives to avoid financial losses related to the ship arrest for not complying with the provisions of the international Conventions. Fourth, improve the quality of the crew by linking with the training schools, supply crewmembers office to offer crew training programs in order to ensure that crew members meet all international standards, including English skills. Fifth, diversify the means of transport services. Combining transporting with logistics services supplying will also help shipping companies create more added value and the scared source of goods. 13

14 7. Conclusion There is no theory of local fleets, but the authors base on the classification of local fleets by the registration of the shipowner's principal place of business to analyze the fleet data of Hai Phong. Accordingly, the fleet of Haiphong is being rejuvenated, with the proportion of ships under the age of 15 at over 68%, the average tonnage of ships will reach over 6000 DWT in 2015.However, the structure includes mainly general cargo carriers, few container ships, is contrary to the trend of the world that includes mainly container ships and used - friendly. When the AEC was implemented, the Haiphong fleet had the opportunity to expand the marketand renovate the equipment system and transport capacity. In the domestic market, there are only a few large shipping companies involved in Southeast Asia facing the risks of domestic competition and being kept at foreign seaports for failing to meet technical and human conditions under international conventions. The linkages in maritime transport and the use of environmentally friendly fuels and international commitments will be increasingly tightened to ensure maritime and marine safety. Thus, the pressure to develop thevietnam and local fleet is getting heavier. In order to develop the sector, it is necessary to have not only support from the government on the policy system, branch planning, infrastructure construction but also the self-effort of each enterprise in the industry. These enterprises of Haiphong need to be connected together in order to get assisted and supported in the context of Vietnam's increasingly integration into the world economy, eapecially in the joining AEC of Vietnam References FPT Security, 2015, Report on Logistics: Jump, Competition and Growth, 107 mil. Ngo Duc Hanh, 2016, World Marine Day opportunities and challenges for Vietnamese crewmen, Vietnam Ministry of Transport. The National Assembly of the Socialist Republic of Vietnam, 2015, Vietnam Maritime Code 95/2015 / QH13. Vietnam Maritime Administration, 2015, Some solutions to improve the effectiveness and efficiency of state management in the maritime field from 2015 to 2020 with orientation to Vietnam Maritime Administration, 2017, Ministry of Fisheries Data Vu Thi Minh Ngoc et al., 2016, Enterprise Survey in Shipping and Management, Scientists in Hai Phong. 14