The governments of Singapore and Vietnam are promoting their respective shipbuilding and repair industries.
- Singapore: Singapore is one of the world's premier ship repair and ship conversion centres. It is also a niche player in the construction of customised and specialised vessels. Ship repair and conversion account for about 60 percent of total revenue. Singapore is also well supported by its strategic location and comprehensive and integrated marine infrastructure services.
- Vietnam: International shipping weekly magazine Fairplay considers Vietnam to be one of the five leading shipbuilding countries in the world. It has approximately 60 major shipbuilding and repairing yards. The main focus of a development plan for the shipbuilding sector is upgrading technology, finding foreign partners for production of steel and finding places to assemble diesel engines and other marine equipment. The strategy also includes building a ship model centre for research, modernising design and management control systems and setting up training centres.
Getting your product into market
New Zealand companies seeking partners in the region should participate in relevant conferences and trade shows to network and raise their profile. Singapore is the hub for holding regional and international conferences and conventions.
New Zealand Trade and Enterprise (NZTE) in Singapore can help garner support, especially when dealing with the Singaporean government or Government-Linked Companies.
Singapore is very status-driven - the names of current partners and clients will help gain attention. Prospective exporters to Singapore should note that competition is strong and buyers expect a high level of after-sales service.
Establishing a presence in the market helps gain trust and the support of local partners and clients, as well as obtaining contacts and attracting venture capital funding.
Vietnam’s distribution system is a mixture of state-owned import-export companies, private and state-owned wholesalers, independent agents, distributors and retail outlets. Foreign companies are generally not permitted to participate in the distribution system. However, companies licensed to manufacture in Vietnam may be able to distribute their products domestically.
Regulations
Singapore is generally a free port and an open economy and has few trade barriers.
Under Vietnamese regulations, unless a foreign company has an investment licence permitting it to distribute its own goods in Vietnam, it must appoint an authorised agent or distributor.
Taxes
- Singapore: Goods kept in the Free Trade Zone are not subject to a goods and services tax of 5 percent unless they are later released for local consumption.
- Vietnam: A value added tax of between 10 and 20 percent is applied on cost, insurance and freight, plus duty.
Opportunities
- With more than 25,000 islands set in deep water, the region is regarded by the boating industry and marine tourism promoters as having considerable potential.
- New Zealand’s long standing history in nautical endeavours and its world-class marine sector should be leveraged.
- Participating in the Asian Shipping and Work Boat show, held every two years, gives access to the broader Asian market.
Challenges
- An impediment to growth is the sometimes difficult process of acquiring cross-border sailing permits from each individual country in the region.
- Singapore is one of the most regulated and restrictive boating areas in Southeast Asia.
Download the full Market Profile for Marine sector in Southeast Asia for more detail, including key contacts and useful websites.
