Vietnam Needs VND 200,000 Billion ($US 8.6 Billion) to Build Seaport System
Vietnam needs to prioritize 2 ports, suggested by Mr. Le Tan Dat, Deputy Director of Construction Consulting JSC of Maritime Works at a seminar on the master plan for Vietnam’s seaport system development in 2021-2030, with a vision to 2050 held by the ministry’s Vietnam Maritime Administration (VMA) on December 30.
International gateway combined with international transshipment ports in Hai Phong and Ba Ria-Vung Tau;
International gateway ports in the central key economic regions with suitable timeframes.
Besides that, the development of large-scale seaport clusters in service of national or inter-regional socio-economic development is also taken into consideration. These clusters include:
Hai Phong - Quang Ninh port clusters;
Nghi Son (Thanh Hoa) - Dong Hoi (Nghe An) port cluster;
Da Nang, Quang Nam, Dung Quat (Quang Ngai) port cluster;
Quy Nhon (Binh Dinh) - Van Phong (Khanh Hoa) port cluster;
HCMC - Cai Mep - Thi Vai port cluster.
Until 2030, the total cost earmarked for the development of Vietnam's seaport system is around VND 150,000 - 200,000 billion ($US 6.5 - 8.66 billion), in which:
VND 35,000 - 40,000 billion ($US 1.51 - 1.73 billion) for the building of seaports’ public infrastructure
VND 18,000 - 20,000 billion ($US 778.6 - 865.2 million) for 18 projects, aiming at renovating and upgrading existing seaports such as Cai Mep - Thi Vai and Lach Huyen ports (higher priority compared to the building of seaports’ public infrastructure)
Up to now, Vietnam’s seaport system has achieved its 2020 target in the number of seaports, quays, wharves, etc.
However, the existing seaport system still has many shortcomings, such as the lack of synchronization between different seaport plans, between different local plans, and different industries. Some local ports have outdated infrastructure, inefficient loading and unloading equipment, and procedures, which fall short of the regional maritime market’s demand.
Vietnam is set to see very strong growth in trade over the coming years, Hence, the country is making enormous efforts in improving and easing their seaports for better transportation and procedures. Trade facilitation can contribute to reducing the wedge between export and import prices. In reducing trade costs, prices for consumers and firms that import inputs for production decrease, and, in turn, profits increase, especially at seaports where greater trade volume takes place. To achieve desirable profits, improving seaports infrastructure to make a more focused investment is the first step. Contact Broad Avenue Team right now and let us share with you the illuminating insights in investment.
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