14:49 | 16/11/2018 Investment
The southern province of Ba Ria-Vung Tau has set a goal to develop logistics into a major service sector with a focus on seaport development.
|A groundbreaking ceremony held by the Vina-Japan Shirogane Logistics Company at the Phu My 3 Specialised Industrial Park in Ba Ria-Vung Tau province - Photo: VNA|
The Vung Tau Shipbuilding and Oil Services Joint-Stock Company will invest in the new logistics center and container port.
Located in Phu My commune, the Cai Mep Ha logistics center will have a total area of 1,200ha, with an estimated investment of 40 trillion VND (1.72 billion USD). The Cai Mep Ha container port will be developed on an area of 86.6ha with total investment of 10 trillion VND (430 million USD).
As a sea-based economy, the province wants to increase the current capacity of its seaports, improve international transshipment services, and achieve throughput capacity of more than 100 million tonnes in coming years.
The province will also continue to upgrade roads to improve connectivity and enhance goods and service circulation, local authorities have said.
By 2020, the province is expected to have 18 port operators and 219 logistics companies, contributing around 94 trillion VND (4.04 billion USD) to GDP and 47.1 percent to the service sector.
Seaports in Vung Tau city by 2030 will be capable of handling 140 to 275 million tonnes of goods, according to authorities.
Under a master plan for the logistics industry, the province will create favourable conditions for seaport and logistics service providers to meet regional standards. The master plan calls for businesses in service and market development sectors to join the supply chains of key products like oil and gas, energy, industrial equipment, supporting industries, and building materials, among others.
Ba Ria-Vung Tau province is a major gateway for international shipments in Southeast Asia, especially because of the Cai Mep-Thi Vai port complex, one of the key ports in the region. The port system is one of only 19 in the world capable of handling 190,000 deadweight tonnage (DWT) vessels. Container ships from the port complex are capable of transporting goods to Europe and North America. In addition, the province is only 70km from HCM City’s Cat Lai port.
To improve connectivity, efficiency and port capacity, the province also plans to increase investment in terminals and road infrastructure.
Infrastructure investments in recent years have increased connectivity within the province and with neighbouring economic hubs like HCM City and Dong Nai province.
By the end of last year, the province had 315 foreign direct investment (FDI) projects with total registered capital of 27 billion USD, and 450 domestic projects with total registered capital of more than 11 billion USD.
Last year, FDI flow reached 1.5 billion USD in 29 new and seven existing projects.
In the first seven months, the province emerged as the third largest destination of foreign investment, just behind Hanoi and HCM City.
Total registered capital reached 2.15 billion USD, accounting for 9.4 percent of total FDI investment in Vietnam. The province aims to attract 4 billion USD in FDI by 2020.
To meet its target, the provincial government plans on more investor-friendly reforms in many areas. In addition, it also plans to increase investment in distribution networks, technology transfer, skill development, and funding for small- and medium-sized enterprises.
The four key sectors in the province include seaport logistics, high-tech industrial production, tourism, and high-tech agriculture. Other areas of opportunities for investors include food processing, shipbuilding, traffic infrastructure, and metallurgy-mechanical engineering.
Located in the southern key economic zone, which contributes nearly 8 percent to the national GDP and 10 percent to State revenues, Ba Ria-Vung Tau is one of the country’s major investment destinations.
In the last decade, rapid economic growth has resulted in the province having the highest GDP per capita and the third highest living standard in Vietnam.