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Major Port Construction Projects In Vietnam - A series of updates on Vietnam's seaport development for archival purpose - Part 1

1. NORTHERN VAN PHONG PORT CONSTRUCTION PROJECT

a. Project Approval and Investment
In May 2017, the Khanh Hoa Provincial People's Committee gave the green light for the construction of the Northern Van Phong Port project in Dam Mon Hamlet, Van Thanh Commune, Van Ninh District, Khanh Hoa Province, which was a key part of port construction in Vietnam. This significant seaport infrastructure undertaking had been spearheaded by Van Phong Port Company Limited, with an initial investment of VND417 billion. Spanning a total area of 42.75 hectares, including 20.6 hectares of water surface, this new port facility aimed to cater to the expanding needs of export-import industrial zones in Khanh Hoa Province and neighboring regions.

b. Port Development and Economic Impact
The Northern Van Phong Port project was a significant development in port construction in Vietnam, had been constructed in two phases. The first phase involved the construction of a 50,000DWT wharf, laying the groundwork for the subsequent development of an international container port. The establishment of this modern port infrastructure was anticipated to significantly boost economic growth in the region by enhancing connectivity, facilitating trade, and creating new job opportunities. Moreover, it would contribute to the development and prosperity of local businesses and industries.

c. Project Alignment and Planning
The Khanh Hoa Provincial People's Committee recently tasked the provincial Department of Transport with a comprehensive review of the planning for the Northern Van Phong Port project in Vietnam. The department's thorough examination confirmed that the project is fully compliant with the overall master plan for the Van Phong International Transit Port. Hoang Dinh Phi, the manager of the Van Phong Economic Zone, corroborated this finding, emphasizing the project's alignment in terms of its intended function, location, and planning.

d. Port’s Role and Development Potential
Given the recent decision to re-purpose Nha Trang Port as a primarily tourist-focused facility, the Northern Van Phong Port is well-positioned to become a vital alternative for handling cargo shipments in the region. This transition will be instrumental in ensuring the continued efficiency of shipping operations in Khanh Hoa Province and the broader Southern Central and Highland regions. Nguyen Cong Dinh, the Director of Khanh Hoa Department of Transport, has reported that the project's investor has successfully completed the necessary land acquisition and clearing activities. Anticipating the granting of a construction license, the investor is poised to commence construction efforts later this year. Upon its completion, the Northern Van Phong Port is expected to serve as a catalyst for development in the northern region of Van Phong.


2. VAN PHONG PORT CONSTRUCTION PROJECT

a. Project Approval and Investment
The Prime Minister has recently agreed to Nha Trang Port Joint Stock Company's investment in the Van Phong Port construction project. This strategic move aligns with the government's ambitious plans to develop Vietnam's coastal economic zones. Spanning an area of 150,000 hectares, including 70,000 hectares on land and 80,000 hectares on water surface, Van Phong Economic Zone is one of 15 economic zones prioritized in the "Plan on development of coastal economic zones of Vietnam up to 2020" ratified by the Prime Minister. Recognizing the growing demand for transportation services in the region, Nha Trang Port Joint Stock Company has submitted a proposal to the Ministry of Transport to invest in the Northern Van Phong General Port project.

 
b. Project Scope and Development Phases
The Prime Minister has permitted Nha Trang Port Joint Stock Company to invest in the first stage of the Northern Van Phong General Port construction project in Vietnam. The management board of Van Phong Economic Zone has granted an investment license to this company. The new port will cover an area of 42.21 hectares. In the first stage, one quay which can receive 50,000 ton ships and 1.5 – 2 million tons of cargo each year will be built. Total investment in projects is estimated to be about VND417 billion. Investment time is 18 – 26 months, including 6 – 12 months for investment proceedings, planning, designing, etc. and 12 – 14 months for construction time. Active time of the project is 50 years. In the complete stage, two container depots will be built for up to 15.000 TEU ships and 1.5 million TEU of cargo/year. A transit port will be formed on demand.
 
c. Port's Role and Future Development
The ground for the Northern Van Phong General Port construction project has been cleared. For many years, Nha Trang Port has served as the main cargo handling facility in the Southern Central region and the Highlands. However, Nha Trang Port has been transitioned into a tourist port. Recognizing the need for a new port to replace Nha Trang Port and ensure the continued cargo circulation for the Southern Central region and the Highlands, the Ministry of Planning and Investment has emphasized the importance of this new construction project. Additionally, the Ministry of Transport has stated that when the project is developed, a multi-functional quay and then container depots will be set up in accordance with the country's plan on seaport development and the detailed planning of the Van Phong International Transit Port, as re-ratified by the Prime Minister.


3. VUNG ANG PORT CONSTRUCTION PROJECT

a. Port Expansion and Investment
The Vung Ang Port is undergoing a significant expansion with the construction of a modern, state-of-the-art dock capable of handling vessels up to 45,000 DWT. This ambitious project, backed by a total investment of VND999.9 billion (US$44 million), aims to bolster the region's economic infrastructure and meet the growing demand for cargo transportation. The new dock will be equipped with the latest technology in cargo handling and storage, ensuring efficient and safe operations. Additionally, the expansion will include improved port facilities, such as wider access roads and larger storage areas, to accommodate the increased volume of cargo. Once completed, the Vung Ang Port will be well-positioned to serve as a major trade gateway for the central region of Vietnam and beyond.
b. Economic Benefits and Regional Development
The new dock is expected to play a pivotal role in attracting foreign investment to the Vung Ang Economic Zone, stimulating socio-economic growth in Ha Tinh province and the central region of Vietnam. By facilitating import-export activities, the port will enhance trade relations between Vietnam, Laos, and the northeastern region of Thailand. The larger capacity of the new dock will enable the port to handle a wider range of goods, including bulk commodities, manufactured products, and perishable items. This increased capacity will make the port more attractive to foreign investors seeking to establish manufacturing facilities or distribution centers in the region. Moreover, the improved infrastructure and connectivity provided by the new dock will facilitate the movement of goods and people, thereby boosting economic activity and creating new job opportunities.
 
c. Port's Growth and Strategic Importance
The Vung Ang Port has already made significant strides in its development, with the first and second docks becoming operational in 2001 and 2010, respectively. These earlier phases of development have laid a solid foundation for the port's growth and success. The upcoming expansion, with the construction of a new, larger dock, further solidifies the port's position as a vital hub for trade and commerce in the region. The port's strategic location, coupled with its modern infrastructure and efficient operations, make it an attractive destination for both domestic and international shipping companies. As the port continues to expand and modernize, it is poised to play an even more important role in driving economic growth and development in the central region of Vietnam.


4. NEW PORT CAI MEP PORT CONSTRUCTION PROJECT

a. Project Commencement and Significance
Saigon Newport Company celebrated a significant milestone on January 9, 2007, with the groundbreaking ceremony for berth No. 1 of Tan Cang – Cai Mep International Container Terminal (CMICT). This deep-sea port project is a key component of the Southern Focal Economic Area's development plan, outlined in Prime Minister's Decision No. 791/QD-TTG of August 2005. CMICT, the first of its kind in the region, will be able to handle large vessels of up to 80,000 DWT or 6,000 TEUs. In conjunction with other terminals in the area, CMICT is poised to drive substantial economic growth for the South.
 
b. Port Location and Capacity
Strategically located 17 nautical miles from the East Sea and 70 kilometers east of Ho Chi Minh City, Tan Cang – Cai Mep International Container Terminal (CMICT) is ideally situated amidst eight major industrial parks in Ba Ria – Vung Tau. With a berth length of 890 meters, a water depth of 15.40 meters, and 60 hectares of container yard area, equipped with modern handling equipment, CMICT is poised to become a prime destination for shipping lines, agents, and domestic and international importers and exporters. The project is divided into two phases. Phase one, comprising 300 meters of berth and 20 hectares of container yard, along with significant investments in modern handling equipment, is scheduled for completion by the end of 2008. In phase two, Saigon Newport will expand the terminal by adding 600 meters of berth and 40 hectares of container yard, partnering with leading international carriers to invest in handling equipment. This phase is expected to be operational by 2010.
 
c. Port Construction and Development
Berth No. 1 is a robust structure measuring 300 meters long and 45.5 meters wide, built on a foundation of pre-stressed concrete piles, each 700 mm in diameter and 40 meters long. Construction is being undertaken by a consortium of three leading Vietnamese companies: Vietnam Waterway Construction Corporation (VINAWACO), Civil Engineering Construction Joint Stock Company 61 (CIENCO 61), and Investment and Construction Joint Stock Company No. 1 (MCO), renowned for their expertise in berth construction. This experienced team is committed to completing the project within 18 months. The construction process is under the strict supervision of professionals from Saigon Newport Company and the Vietnam People's Navy. With Vietnam's annual container throughput growing at over 20%, the operation of CMICT is well-positioned to meet the surging trade demands in the South in 2008 and contribute significantly to the country's overall economic development.