The Vietnam Shipbuilding Industry Corporation (Vinashin) has signed a contract with its Dutch partner, Damen Shipbuilding Corporation, to set up a shipyard in the northern port city of Hai Phong.

The 42-ha Damen-Vinashin shipyard will be built at an estimated cost of 30 million euros (US$39 million). It is scheduled to start operating after two years of construction.

Upon its completion, the joint venture will manufacture various kinds of ships like tug boats, high-speed ships, and vessels for offshore service.

The establishment of the joint venture marks a new development stage in the cooperation between the Damen and the Song Cam shipyard of Vinashin, which has cooperated in building SAR rescue ships in Vietnam for many years.