Steelmaker Hoa Phat plans to manufacture 500,000 twenty-foot equivalent unit containers a year to mitigate a shortage since containers are stuck at ports after Covid-19 hit trade.
It plans to build its first container manufacturing factory in Binh Duong or Dong Nai province and near Cat Lai Port in HCMC and Cai Mep – Thi Vai International Port in Ba Ria – Vung Tau Province.
The logistics sector is suffering from a severe container shortage since many remain in various ports around the world, unable to offload their goods, while demand for containers to export to Europe and the U.S. is high.
Most shipping lines have hiked freight by 2-10 times in the last three months and received numerous complaints about this.
In Vietnam, there is no container production, the price of weather-resistant hot-rolled coil steel used for making containers is high, and would cause losses for companies if they have to import it and Hoa Phat can produce this type of steel, as Mr. Tuan said.
Cre: Retail News Asia