The Shipping Industry Expands Capacity in Vietnam to Compete with China

The shipping industry is rushing to build new capacity in Vietnam as the country works to expand its role as a manufacturing base competing with China. Two international players, CMA CGM and DP World, are highlighting their investments to build new capacity focusing on internal logistics with new river-sea transport operations.

Vietnam’s Strategic Positioning

Vietnam has successfully positioned itself as a cost-effective alternative to China and is now leveraging the Trump administration’s efforts to rein in China by presenting itself as a strong alternative. Reports indicate that Vietnam was quick to open tariff negotiations with the Trump administration. South Vietnam, home to the Mekong Delta Key Economic Region and the Southern Key Economic Region, has become a driver for Vietnam’s manufacturing and export economy.

Infrastructure Challenges

One of the challenges facing Vietnam is internal infrastructure. The government has been calling for the development of inland waterway transportation as a means of linking manufacturing areas and ports.

DP World’s Investments

DP World currently operates the Saigon Premier Container Terminal in Ho Chi Minh City with an annual capacity of 400,000 TEU and the only RoRo port in the south. The company has announced a new partnership with VIMC Lines to launch the Mekong Express river service, enhancing connectivity between key economic regions in the South. The service will operate two trips per week, combining river and sea routes to move hundreds of containers per week, including reefers.

“DP World is committed to building an integrated, seamless supply chain ecosystem in Vietnam – an increasingly important market in the Asia Pacific region as well as globally,” said Glen Hilton, General Director of Asia Pacific for DP World. “With the Mekong Express, we are meeting the demand for an efficient and reliable service that will contribute to promoting economic development in the Southern region and throughout Vietnam.”

CMA CGM’s Expansion Plans

CMA CGM announced its planned investment to expand port operations in the north of Vietnam. The company has also signed an agreement with Gemadept to establish a new joint venture, Green River Transport, which will operate the electric barge CMA CGM is building for transport in Vietnam. The new joint venture will manage transport in the Mekong Delta.

The electric barge, set to enter service in 2026, will be powered by a charging station at the Cai Mep port near Ho Chi Minh City, Vietnam’s main container gateway. CMA CGM operates 29 weekly maritime services from Vietnam and has secured Nike as the first customer for the new electric barge service, which will facilitate logistics flow between Vietnam manufacturing locations and the Gemalink container terminal.