New challenges for VOS

However, the scale of VOS's fleet remains significantly smaller than that of regional competitors. Without addressing this limitation, VOS may face even greater difficulties and challenges in the future.

Unexpected Return to Losses

VOS was able to reverse its cumulative losses during a protracted period of difficulties in the shipping sector by the end of 2022. However, the company reported a net loss of VND 14.14 billion in its Q3 2024 financial report despite recording revenue of VND 1,269.85 billion, a 77.4% increase year over year. A VOS representative stated that a foreign exchange loss of VND 17.7 billion in Q3 2024 was the reason for the return to losses.

VOS announced post-tax profits of VND 344.2 billion for the first nine months of 2024, up 577% year over year, and cumulative revenue of VND 4,239 billion, up 86% from the same time the previous year. Pre-tax profits of VND 323 billion and total revenue of VND 2,440 billion were among the company's 2024 goals. Consequently, VOS had reached 127% of its yearly profit goal by the end of Q3 2024.

Challenges in Fleet Investment

Ten vessels have been added to VOS's 2024 fleet investment plan. At a maximum cost of USD 23 million per vessel, the company specifically wants to purchase two used Supramax bulk carriers (56,000–58,000 DWT, under 15 years old). It also intends to construct four new MR product tankers (about 50,000 DWT, at a maximum cost of USD 52 million per vessel) and four new Ultramax bulk carriers (62,000–66,000 DWT, at a maximum cost of USD 40 million per vessel).

Explaining the decision to invest in vessels despite ongoing business challenges, VOS stated it currently operates a fleet of 13 vessels with a total carrying capacity of approximately 420,000 DWT. The most recent addition to its fleet was the Vosco Sunrise, delivered on May 15, 2013. Since then, the company has only focused on restructuring and liquidating older vessels no longer suitable for the market. Furthermore, VOS had refrained from investing in new vessels due to losses and an inability to secure funding.

When compared to 2013, the company's fleet size and capacity significantly decreased after selling and delivering the Dai Minh product tanker in May 2024. VOS's fleet size is comparable to that of a minor shipping line in the area when compared to regional rivals. Furthermore, the shipping industry faces significant problems since the International Maritime Organization has compressed the timeframe for compliance by 50 years by moving its greenhouse gas emission target from 2100 to 2050.

Without fleet expansion, VOS’s competitiveness will continue to decline. The company’s current transport capacity is insufficient in both quantity and quality to compete with regional carriers, let alone domestic private shipowners who took advantage of low vessel prices and cheap financing to invest in vessels during 2019–2020. As such, the challenge of fleet investment and financing will be a significant hurdle for VOS under the current circumstances.