The new face of Vietnam’s logistics industry

09:11 | 29/02/2020 Economy- Society

(VEN) - The Vietnamese logistics industry has become modern and can reap the rewards of the country’s growing economy.

the new face of vietnams logistics industry

Strong investment

Some logistics businesses have decided to make big investments in infrastructure to help the logistics industry reach its potential. Nguyen Thanh Phuong, general director of the Sao Do Group, the developer of the Nam Dinh Vu Industrial Park in Hai Phong City, said the industrial park covers a total land area of 1,329ha, including many multi-service sub-zones, such as a seaport and logistics area, a non-tariff area, a petroleum port and a liquid cargo area, meeting all investment requirements and scales. In particular, the Nam Dinh Vu Port is becoming an important link in the logistics chain of the marine economic corridor of Hai Phong, Hanoi and Quang Ninh.

Nam Dinh Vu Port covers an area of 65ha with a 1,500m wharf, which costs a total of VND6 trillion. The port is the most important international and domestic commercial transportation hub in the north, located at the mouth of Bach Dang River with its deep draft and wide turning zone. It is one of the most modern ports in Hai Phong in terms of scale, loading and unloading equipment, and warehousing.

Nguyen Thanh Phuong said Hai Phong has the largest volume of import and export goods in the north. Its advantages, including ports with modern equipment and adequate and safe infrastructure suitable for international commercial transportation, make it an important logistics service center. Hai Phong is also home to many logistics businesses and logistics training facilities in the north.

Cai Lan Port in Quang Ninh Province’s Ha Long City is also a major seaport, with two companies engaged in logistics - the Cai Lan International Container Terminal (CICT) and the Quang Ninh Port Joint Stock Company.

CICT has promoted investment in machinery and equipment to enhance cargo loading and unloading capacity. The entire operation of the terminal is managed by its software and monitored closely on a surveillance camera network. In 2019, CICT invested in an 8,000sq.m warehouse to meet customers’ storage needs. Currently, the terminal can accommodate vessels up to 6,000 TEUs or 85,000 DWT enlightened.

Potential of northern region

Piyush Rathore, general director of the Transworld QBV ICD Joint Stock Company, a joint venture between the Quang Binh Import and Export Joint Stock Company and the Transworld GLS Vietnam Co., Ltd., said the logistics market in Vietnam’s southern region is saturated. The northern market, however, is expected to continue to grow thanks to its favorable location near the Chinese border.

“Our company does not face any difficulties in operating in Vietnam. The Vietnamese government has created the most favorable conditions to help the company grow. Therefore, we will continue to contribute to the growth of Vietnam’s logistics industry,” Piyush Rathore said, adding that the company owns a 20ha facility, comprising an 87,000sq.m container yard, a 7,500sq.m bonded and general warehouse and a 1,500sq.m freezer warehouse.

Vietnam has the ability to develop its logistics industry thanks to its dynamic import and export activities, said Tran Thanh Hai, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, adding that with its central position in Southeast Asia and more than 3,000km of coastline, Vietnam can serve as a stopover destination for shipping firms from other countries in the region and the world.

The development of the logistics industry is necessary for national economic growth and market expansion. Logistics has become an important part of international trade, playing an essential role in supporting various economic sectors, manufacturing industries and import-export activities, Hai said.

According to the Vietnam Logistics Business Association, the Vietnamese logistics industry has seen rapid development in recent years with yearly growth rates of 14 to 16 percent.

Quynh Nga