Europe’s biggest shipbuilding group Aker Yards ASA in Norway has announced its plan to build its first shipyard in Asia and Aker Yards chose Vung Tau City in Vietnam due to its abundant supply of low-cost skillful labour.

Oslo-based Aker Yards said it will contribute 70 percent of its shares in building the shipyard, while the remaining will come from Singapore’s Amanda group.

The shipbuilding group said the opening of a shipyard in Vietnam will enhance its capacity to meet international customers in the Asian region.

In the next three years, Aker Yards will invest around US$16 million in the shipyard which is designed to build three to four ships depending on their types and sizes. It is planned that the first ship will be launched in 2009.

Aker Yards now has 17 shipyards in Brazil, France, Germany, Norway, Romania and Ukraine.