2024 is favorable

Danang Port Joint Stock Company (CDN) has just announced its financial report for the fourth quarter of 2024 with both net revenue and profit after tax increasing compared to the same period last year. For the whole year of 2024, CDN’s net revenue reached VND 1,452 billion, an increase of 17% compared to 2023; profit after tax reached VND 301.3 billion, an increase of 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, and pre-tax profit is expected to reach 420 billion VND. The 420 billion VND profit plan for 2025 is equivalent to a 12% increase compared to the results of 2024.

Regarding Gemadept Corporation (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 volume 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 remaining positive. 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 and 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 exports and imports.

Expectation of acceleration

With positive results in 2024 and many other long-term supporting factors, the volume of goods passing through seaports nationwide 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 cargo volume.

According to KBSV, import-export turnover is expected to continue to grow as foreign investment flows stabilize in the context of Vietnam being a country that directly benefits from 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 stable growth driver for businesses in the long term.

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 demand for investment in the seaport system by 2030 is about 351,500 billion VND, of which investment capital for maritime infrastructure is about 72,800 billion VND and 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.

In 2025, the global port market may be highly volatile as shipping alliances restructure from February 2025. New alliances are expected to create greater competition, especially in the early stages, with spot freight rates likely to decline 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, which greatly affects cargo handling 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.

vietnam.vn

(Thuy Trieu –  https://baodautu.vn/doanh-nghiep-cang-bien-truoc-co-hoi-but-toc-d241783.html )