Port businesses face opportunities to accelerate

A favorable business year in 2024 and many more supporting factors make the prospects of seaport industry enterprises brighter in 2025.

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Favorable year 2024

Danang Port Joint Stock Company (CDN) has just announced its financial report for the fourth quarter of 2024 with net revenue and profit after tax both growing compared to the same period last year. For the whole year of 2024, CDN's net revenue reached VND 1,452 billion, up 17% compared to 2023; profit after tax reached VND 301.3 billion, up 9%.

In the regular meeting of the fourth quarter of 2024, CDN said that in 2024, the enterprise completed the targets with output reaching 107% of the assigned plan and increasing by 15% compared to 2023. Of which, container goods reached 107% of the assigned plan and increased by 13% compared to 2023. Revenue reached 108% of the plan and increased by 15% compared to 2023. Profit reached 103% of the plan and increased by 9% compared to 2023.

On that basis, Mr. Nguyen Dinh Chung, Chairman of the Board of Directors of CDN, proposed a plan for 2025, with production and business targets increasing by 4-6% compared to 2024. Specifically, the total cargo throughput through the port is 14.9 million tons (of which containers are expected to be 799,000 TEU), total revenue is expected to be 1,670 billion VND, pre-tax profit is expected to reach 420 billion VND. The 420 billion VND profit plan for 2025 is equivalent to a 12% growth compared to the results of 2024.

Regarding Gemadept Joint Stock Company (GMD), KB Securities Vietnam (KBSV) forecasts that GMD's port service business results will continue to maintain positive growth from now until the end of 2025. Cargo output through the entire GMD port system is expected to record an increase of more than 40% in 2024, possibly slowing down in 2025 but still maintaining a positive growth. Stable price growth is a factor ensuring revenue growth momentum for GMD in the context of narrowing room for output growth next year.

According to the Vietnam Maritime Administration, in 2024, the total volume of goods passing through Vietnam's seaports is estimated to reach 864.4 million tons, up 14% over the same period. The growth in seaport cargo output is due to the improvement in Vietnam's general import-export situation.

According to the General Statistics Office, Vietnam's total export turnover in 2024 will continue to maintain positive growth in the context of preliminary export turnover reaching 405.53 billion USD, up 14.3% over the previous year. Of which, the domestic economic sector reached 114.59 billion USD, up 19.8%, accounting for 28.3% of total export turnover; the foreign-invested sector (including crude oil) reached 290.94 billion USD, up 12.3%, accounting for 71.7%.

In addition, the port industry also benefits from the trend of shifting supply chains, mainly in computers and electronic components. These are key products contributing to output growth in both export and import directions.

Expectations of acceleration

With positive results in 2024 and many other long-term supporting factors, the country's seaport throughput is expected to continue to maintain positive growth momentum in 2025. The Ministry of Industry and Trade forecasts that this year, Vietnam's exports will continue to grow by 12%, supporting the growth in port throughput.

According to KBSV, import-export turnover is expected to continue to grow as foreign investment flows stabilize in the context of Vietnam being a direct beneficiary of the China +1 trend, as well as participating in many trade agreements and signing bilateral cooperation documents with South Korea, the US and China.

Meanwhile, global trade will record high growth in the short term before the tariff changes are officially approved after President Donald Trump takes office. Seaport service prices increase steadily from 3-10%/year depending on the type of service and port, with the increase of southern ports higher than northern ports, which is also a driving force for stable long-term growth for businesses.

Recently, on January 16, 2025, Deputy Prime Minister Tran Hong Ha signed Decision 140/QD-TTg approving the detailed planning of seaports, ports, wharves, buoys, water areas, and water regions for the period 2021 - 2030, with a vision to 2050. Accordingly, the capital investment demand for the seaport system by 2030 is about 351,500 billion VND, of which the investment capital for maritime infrastructure is about 72,800 billion VND and the investment capital for ports is about 278,700 billion VND (including only ports providing cargo handling services). This shows that public investment in the connecting transport system and seaport infrastructure is increasingly focused on.

In 2025, the global port market may fluctuate strongly when shipping alliances restructure from February 2025. New alliances are expected to create greater competition, especially in the early stages, spot freight rates may decrease slightly in the short term as shipping lines compete to attract partners.

However, for Vietnamese ports, changing the structure of shipping line alliances creates opportunities to attract international transit passengers, especially to deep-water ports for cargo handling, greatly affecting cargo handling output and port efficiency. According to An Binh Securities Joint Stock Company (ABS), the Cai Mep - Thi Vai area is assessed to have good competitive advantages and will benefit from the presence of many of the world's leading shipping lines.

Source: https://baodautu.vn/doanh-nghiep-cang-bien-truoc-co-hoi-but-toc-d241783.html