While advanced Asian countries lead the global shipbuilding industry, a global think tank stated that emerging Asian countries such as the Philippines, Vietnam, and India have significant potential to take up space in the industry.

Dutch think tank ING said in a Dec. 16 report that China, South Korea, and Japan currently dominate the global shipbuilding industry, accounting for the majority or 85 percent of its total output.

Interestingly, the Philippines and other developing countries are following suit, said Rico Luman, ING senior sector economist for transport and logistics, noting that it has a “significant potential to grow in the global shipbuilding scene.” 

Among the top 10 shipbuilders, the Philippines ranks 8th as of November, overtaking France and Finland.   

According to recent reports, the revised 10-year Maritime Industry Development Plan (MIDP) seeks to modernize the country’s shipyards, boosting their capacity to meet domestic and global shipping needs while creating jobs and attracting more investments.

Meanwhile, global trade, as per ING, is “increasingly” driven by trade between Asian countries, and “export-driven economies are naturally linked to shipping and shipbuilding,” even though ships can be owned and operated by companies from anywhere around the world. 

Luman said that Asia’s role as a hub for global production and consumption gives it a competitive edge in shipbuilding, supported by a large pool of affordable, skilled labor. 

Beyond the rich countries, Luman also sees “growth potential” in the Philippines and other Asian countries.

South Korean shipbuilders have expanded by acquiring shipyards in the Philippines and Vietnam. This, along with India’s ambitious goal to become a top 10 shipbuilder by 2030, signals that “Asia will continue to be the main hub of the global shipbuilding industry.”

To add, the region also plays a major role in ship recycling besides its promising shipbuilding performance.

“Not only does Asia build the majority of the world’s ships, but it also recycles or disposes of most ships at the end of their lives,” ING stated. South Asia in particular recycles 80-85 percent of the world ships, which is a shot at sustainability. 

As for the think tank’s outlook, Luman concluded that shipbuilding remains a major growth driver in Asia, with China, South Korea, and Japan leading, while new competitors emerge.

“The current upcycle in shipbuilding is poised to offer numerous opportunities for both emerging and established players,” he added.