Major Port Construction Projects In Vietnam - A series of updates on Vietnam's seaport development for archival purpose - Part 2
15/07/2024
1. LACH HUYEN PORT CONSTRUCTION PROJECT
a. Project Overview and Investment
To meet the increasing demand for international trade, the Vietnamese government has approved the construction of two new container berths at Lach Huyen wharf in Hai Phong Port. This ambitious project, estimated to cost nearly $548 million, will significantly enhance the port's cargo handling capacity and solidify its position as a major trade hub in the region. The two new berths, numbered 7 and 8, will be strategically added to the port's infrastructure, allowing it to accommodate larger vessels and handle a greater volume of containers. This expansion is expected to not only boost Vietnam's exports and imports but also attract more foreign investments and create new job opportunities in the surrounding areas. The construction of these new container berths is a testament to the Vietnamese government's commitment to modernizing its transportation infrastructure and supporting the country's economic growth.
Lach Huyen Port Construction Project - Hai Phong - Vietnam
b. Port Expansion and Capacity
The expansion of Lach Huyen port in Hai Phong marks a significant step forward in Vietnam's maritime development. The construction of two new container berths, each spanning an impressive 750 meters in length, will significantly enhance the port's capacity to handle larger and more modern vessels. These berths are designed to accommodate ships carrying between 12,000 and 18,000 TEUs, positioning Lach Huyen port as a major player in the regional and international shipping industry.
Lach Huyen Port Construction Project - Hai Phong - Vietnam
c. Government Commitment and Maritime Strategy
The Prime Minister's decision to greenlight this project underscores the Vietnamese government's commitment to realizing its ambitious maritime strategy. By investing in the expansion of Lach Huyen port, the government aims to not only boost the country's trade capabilities but also to strengthen its position as a key logistics hub in Southeast Asia. This strategic move will attract more foreign investments, create new job opportunities, and contribute to the overall economic growth of Vietnam.
Lach Huyen Port Construction Project - Hai Phong - Vietnam
d. Economic Benefits and Future Outlook
As construction progresses, Lach Huyen port is poised to become a more efficient and competitive gateway for international trade. The completion of this project will not only benefit the port itself but also have a positive ripple effect on the surrounding regions and the nation as a whole. Vietnam's maritime future looks increasingly bright with initiatives like the expansion of Lach Huyen port paving the way for greater prosperity and global integration.
2. BAI GOC PORT CONSTRUCTION PROJECT
a. Project Overview and Location
Bai Goc deepwater port is a key component of the port construction in Vietnam, as outlined in the Vietnamese seaport plan for the 2021-2030 period. Deputy Prime Minister Tran Hong Ha visited a potential construction site in the south-central province of Phu Yen on April 13. Once completed, Bai Goc Port is designed to serve the Hoa Tam Industrial Park, located within the Nam Phu Yen Economic Zone.
Bai Goc Port Construction Project - Phu Yen - Vietnam
b. Port Scale and Development Plans
Bai Goc port construction in Vietnam is a strategic project that will cover a total area of 220 hectares, including 134 hectares of land and 86 hectares of water surface. The port will have a depth of 20-25 meters. After the inspection tour, Deputy PM Tran Hong Ha urged Phu Yen province to develop a detailed plan for the port’s sub-zones to facilitate efficient construction. He emphasized the importance of synchronous connectivity between infrastructure in the region, particularly transport infrastructure, to create a cost-effective development ecosystem that encompasses industry and logistics. Deputy PM Ha also encouraged the province to adopt innovative and environmentally sustainable technologies during the port construction process.
Bai Goc Port Construction Project - Phu Yen - Vietnam
c. Economic and Social Impact
Deputy PM Tran Hong Ha emphasized the importance of comprehensive labor demand assessments in Phu Yen province to support the planning of social housing for workers in the Nam Phu Yen Economic Zone. This is especially crucial as port construction in Vietnam continues to drive economic growth. Phu Yen Chairman Ta Anh Tuan highlighted the pivotal role of Bai Goc Port and the Hoa Tam Industrial Park in fostering the socio-economic development of the province, particularly in the marine economy sector.
3. TRUNG NAM CA NA PORT CONSTRUCTION PROJECT
a. Project Overview and Investment
The central coastal province of Ninh Thuan has demonstrated a strong commitment to infrastructure development and economic growth with the approval of a VND2.1 trillion ($88.86 million) plan to construct a 41-kilometer road connecting the deep-water Ca Na seaport to the Central Highlands. This strategic investment underscores the government's vision for enhancing connectivity and accessibility in the region, paving the way for increased trade, tourism, and economic prosperity.
Trung Nam Ca Na Port Construction Project - Ninh Thuan - Vietnam
b. Road Infrastructure and Connectivity
The 41-kilometer road, which will be funded by a combination of provincial and central budgets, is a significant undertaking that will significantly improve transportation links between the Ca Na seaport and the Central Highlands. The project also includes a dedicated three-kilometer section connecting Ca Na Industrial Park to the seaport, further enhancing the region's logistics capabilities and attracting investment in manufacturing and industrial activities.
Trung Nam Ca Na Port Construction Project - Ninh Thuan - Vietnam
c. Economic Impact and Trade Facilitation
Upon completion, this road infrastructure is expected to have a transformative impact on the local economy. By facilitating the transportation of goods, including bauxite and agricultural products from Lam Dong province, the road will play a vital role in supporting trade and commerce between the coastal region and the Central Highlands. Moreover, the improved connectivity will also stimulate tourism, attracting visitors to explore the natural beauty and cultural heritage of Ninh Thuan province.
Trung Nam Ca Na Port Construction Project - Ninh Thuan - Vietnam
d. Government Efforts and Regional Development
The construction of this road project aligns with the government's broader efforts to develop the central coastal region and strengthen its economic ties with other parts of Vietnam. By investing in infrastructure, Ninh Thuan province is creating a more favorable environment for businesses, attracting investment, and generating new job opportunities. As the project progresses, it is expected to contribute significantly to the region's overall development and enhance its competitiveness within the national economy.
4. VINH TAN PORT CONSTRUCTION PROJECT
a. Port Inauguration and Investment
Binh Thuan Province and the Pacific Corporation celebrated a significant milestone on April 20 with the official inauguration of the Vinh Tan International Port. This long-awaited project, spanning over four years of construction, is poised to play a pivotal role in driving economic growth and development in the central region of Vietnam. As a key logistics infrastructure investment in the region, Vinh Tan International Port has received a substantial investment of approximately VND2.3 trillion (US$98.9 million) from Vinh Tan International Port JSC, a member of the Pacific Corporation. Located on a sprawling 140-hectare site in Vinh Tan commune, Tuy Phong district, the port is designed to handle a significant capacity of up to 8 million tons of cargo annually.
Vinh Tan Port Construction Project - Binh Thuan - Vietnam
b. Port Facilities and Capacity
The newly inaugurated port in Vietnam boasts a state-of-the-art general berth capable of accommodating cargo ships up to 30,000 deadweight tons (DWT). This modern port construction project also features two wharves currently operational, each designed to handle vessels of 50,000 DWT. To further enhance its capabilities, the port plans to develop an additional wharf that can accommodate even larger ships, weighing up to 70,000 DWT. During the inauguration ceremony, Nguyen Ngoc Hai, Chairman of the Binh Thuan Provincial People's Committee, expressed his optimism about the port's potential to transform the region's economic landscape. He emphasized that this new port construction project would serve as a catalyst for regional connectivity, alleviate logistical bottlenecks, and address the urgent demand for goods transportation in Binh Thuan and neighboring provinces.
Vinh Tan Port Construction Project - Binh Thuan - Vietnam
c. Economic Benefits and Regional Development
The newly constructed Vinh Tan International Port is poised to deliver significant benefits to the region. Mr. Nguyen Ngoc Hai highlighted the port's expected improvements in local transportation capacity, reduction in logistics costs, and stimulation of marine economic development. He predicted that this new port construction project would not only drive economic growth in Binh Thuan but also stimulate development in the Central Highlands and southeastern regions of Vietnam. With the opening of Vinh Tan International Port, Binh Thuan Province is well-positioned to capitalize on its strategic location and enhance its competitiveness as a regional trade hub. The port's capabilities and potential for future expansion are expected to attract more investment, create jobs, and contribute significantly to the overall prosperity of the region.
5. GEMALINK CAI MEP PORT CONSTRUCTION PROJECT
a. Project Resumption and Significance
Construction has finally resumed on the Gemalink Cai Mep Deep Water Port after a seven-year delay. This major project, a joint venture between Vietnamese company Gemadept and French shipping giant CMA CGM, is a significant step forward in modernizing Vietnam's port infrastructure. The port will be the largest of its kind in Vietnam, capable of handling the world's biggest ships. It is expected to significantly boost the country's shipping capacity and trade capabilities.
Gemalink Cai Mep Port Construction Project - Ba Ria Vung Tau
b. Project History and Gemadept's Role
Gemadept and CMA CGM initially partnered to develop the Gemalink Cai Mep port, with Gemadept holding the majority stake. Construction began in 2010 but was halted due to economic challenges. To revive the project, Gemadept restructured its business and sold shares in other companies. Established in 1990, Gemadept is a pioneer in Vietnam's public market. The company has ambitious plans for growth, both domestically and internationally, including the development of the Nam Dinh Vu port in Haiphong.
c. Gemadept's Expansion Plans and Services
Gemadept, a leading logistics and port services provider in Vietnam, has ambitious plans to expand its operations across various sectors. The company aims to create a comprehensive logistics and port system by investing in and developing new facilities and services in areas such as ports, logistics, warehousing, transportation, and air cargo. This expansion will enable Gemadept to offer a wider range of services to its customers and meet the growing demand for efficient and reliable logistics solutions in Vietnam.
d. Strategic Partnerships and Acquisitions
In addition to its organic growth strategy, Gemadept has also pursued strategic partnerships and acquisitions to strengthen its market position. In July 2018, the company sold a majority stake in one of its subsidiaries to a South Korean buyer. While the exact value of the deal remains undisclosed, it is estimated to be over VND104 billion. This transaction provided Gemadept with additional capital to reinvest in its business and accelerate its expansion plans.
Thien An