Japanese engineering firm Mitsui E&S plans to expand its crane manufacturing to Vietnam, capitalizing on Southeast Asia’s growing role in global supply chains. The move comes as manufacturers increasingly relocate their operations from China amid escalating U.S.-China tensions.
The company will partner with a local Vietnamese steel manufacturer to produce approximately 30 cranes annually within three years. The expansion supplements Mitsui E&S’s existing production facility in Japan’s Oita prefecture, which faces capacity constraints despite automated processes.
The strategy aligns with Vietnam’s rising prominence in global trade. The country jumped to seventh place globally in container throughput in 2022 from 20th in 2010, according to Japan’s transport ministry data.
Mitsui E&S’s logistics division secured orders for 72 gantry cranes from Malaysia and Vietnam in the fiscal year ended March 2024. The unit posted record orders of 70.5 billion yen ($447 million), up 43% year-on-year, while sales rose 14% to 47.6 billion yen.
The company stands to benefit from U.S. efforts to reduce Chinese influence in port infrastructure. Washington plans to invest over $20 billion in ports over five years, specifically targeting cybersecurity concerns related to Chinese logistics systems. This initiative threatens market leader Shanghai Zhenhua Heavy Industries’ dominant position in the global port crane sector.
The Japanese manufacturer is also exploring North American production through its Paceco subsidiary in collaboration with a Canadian investment firm.
