Archive

Major Port Construction Projects In Vietnam - A series of updates on Vietnam's seaport development for archival purpose - Part 4

1. CAI MEP HA PORT CONSTRUCTION PROJECT 

a. Project Overview and Consortium
The consortium, comprising the State Capital Investment Corporation (SCIC), Hanoi-based Geleximco Group, and Ho Chi Minh City-based International Transportation and Trading JSC (ITC), has proposed a significant port construction project in Ba Ria – Vung Tau Province, southern Vietnam. The project, spanning 350 hectares and estimated to cost VND50.82 trillion (US$2 billion), aims to upgrade Cai Mep Ha port in Phu My Town, as announced by the Ministry of Transport last week.

b. Initial Phase and Investment
The initial phase of this Vietnam port construction project is slated to commence immediately and extend until 2030. This phase will entail substantial investments in two docks designed to accommodate vessels of up to 250,000 DWT. In a recent submission to the government, the ministry appraised the consortium's proposal for phase 1 as being in complete alignment with Vietnam's comprehensive master plan and detailed seaport planning, considering both ship size and operational functionality.
c. Investor Requirements and Port Capacity
Given the substantial investment required for this port construction project, the ministry has stipulated that the investor must conclusively demonstrate its financial capacity and adeptness in capital arrangement. This serves as a fundamental prerequisite for securing approval for the investment project in accordance with established regulations. Presently, the Ba Ria - Vung Tau seaport boasts seven berths strategically designed to accommodate a container handling capacity of up to 7.66 million TEUs per year.

d. Priority Area in Vietnam's Seaport Master Plan
While the designed container berth capacity at the Ba Ria - Vung Tau seaport is 7.66 million TEUs per year, the average annual container throughput over the past three years has consistently exceeded 8 million TEUs. This indicates a significant demand that surpasses the current capacity of the port's container berths. Recognizing this, the government, under its approved master plan for developing Vietnam's seaport system for the current decade with a vision towards 2050, has identified Cai Mep Ha as one of the priority seaport areas for expansion and enhancement.


2. HON KHOAI PORT CONSTRUCTION PROJECT

a. Site Visit and Feasibility Assessment
On May 23, a delegation from the Ministry of Transport, domestic investors, and Ca Mau province leaders visited Hon Khoai to assess the feasibility of port construction. The team surveyed potential port development areas, including the mainland, Hon Khoai island cluster, and adjacent marine zones. These areas are earmarked for transformation into functional zones within the port's master plan.
 
b. Transportation Network Expansion and Upgradation
Following the site visit, the delegation sought a meeting with Ca Mau Province's People's Committee to discuss Hon Khoai port's construction plans. Key topics included expanding and upgrading the existing transportation network to accommodate cargo ships efficiently. This would ensure seamless connectivity between road, waterway, and sea routes, facilitating access to Hon Khoai port and nearby maritime facilities.

c. Port Master Plan and Facilities
As per the master plan, Hon Khoai port is envisioned as a major deep-water seaport within Vietnam's maritime infrastructure. The port will feature comprehensive facilities, including a wave protection system, a container terminal capable of handling 250,000-ton vessels, areas for tugs, patrol boats, and ancillary services. Additionally, the project includes a 17-kilometer bridge connecting Hon Khoai island to the mainland and another spanning 42 kilometers to the Nam Can Economic Zone. The total estimated investment for this ambitious undertaking is approximately US$2.5 billion.

d. Hon Khoai: A Natural Gem
Hon Khoai, a stunning archipelago located approximately 20 kilometers southwest of Nam Can in Ca Mau province, is a true natural gem. This cluster of islands, including Hon Khoai, Hon Sao, Hon Doi Moi, Hon Da Le, and Hon Tuong, spans a total area of 4 square kilometers. Hon Khoai, the largest and most well-known of the group, is renowned for its breathtaking landscapes, pristine beaches, and lush vegetation. With its crystal-clear waters, towering cliffs, and secluded coves, Hon Khoai offers a serene and idyllic escape for nature lovers and adventure seekers alike.


3. VSICO CHAN MAY PORT CONSTRUCTION PROJECT

a. Project Commencement and Investment
The construction of two new wharves in Chan May - Lang Co Economic Zone, Thua Thien Hue province, by Vsico Maritime JSC has recently commenced. This significant project, with a total investment of VND1.67 trillion ($67.3 million), was marked by a groundbreaking ceremony attended by Prime Minister Pham Minh Chinh. Wharves No. 4 and No. 5 will become integral parts of the Chan May port cluster. This strategic development positions Chan May as the most accessible and convenient gateway to the East Sea for the East-West economic corridor, facilitating trade connections between central Vietnam and countries like Laos, Thailand, Myanmar, and others across Asia.
 

b. Strategic Location and Port Capacity
The Chan May port cluster strategically occupies a central location in Vietnam, situated between the two major urban centers of Thua Thien-Hue province and Da Nang city. This prime location provides the port cluster with excellent connectivity and accessibility, making it an ideal hub for regional and international trade. According to Vu Duc Hue, managing director of Vsico, the two new wharves will encompass an area of 20.4 hectares with a combined length of 540 meters. These wharves will have the capacity to accommodate large cargo ships weighing up to 70,000 tons and container ships carrying up to 4,000 TEUs. The project is anticipated to be completed by the second quarter of 2025, with commercial operations commencing in early 2026. It is projected to handle an annual throughput of 80,000 to 100,000 TEUs.
 

Vsico Chan May Lang Co Port Construction Project - Thua Thien Hue

c. Project Timeline and Economic Impact
This port construction project is expected to significantly enhance the capacity and efficiency of the Chan May port cluster, making it a more attractive option for shipping lines and cargo owners. The expansion of the port will also create new jobs and boost economic activity in the surrounding region. The port construction project in Chan May is a significant development for Vietnam, as it will help to improve the country's trade competitiveness and attract more foreign investment. The Chan May port cluster is already an important gateway to the East Sea for the East-West economic corridor, and the expansion of the port will make it even more attractive to businesses. With the completion of this project, Vietnam will be able to handle larger vessels and increase its trade volume, further solidifying its position as a regional economic powerhouse.

  

4. MY THUY PORT CONSTRUCTION PROJECT

a. Project Commencement and Investment
The central province of Quang Tri officially broke ground on the construction of My Thuy Port on March 25. Situated within the Quang Tri Southeast Economic Zone in Hai An Commune, Hai Lang District, the deepwater port project carries a total investment of 14 trillion VND (equivalent to 565 million USD). Upon completion, My Thuy Port will be capable of receiving vessels with a maximum capacity of 100,000 tonnes. Addressing the groundbreaking ceremony, Quang Tri Chairman Vo Van Hung emphasized the strategic importance of My Thuy Port as a key project for the province. He expressed confidence that the port would serve as a catalyst for attracting investment and driving socio-economic development in Quang Tri.
b. Strategic Importance and Port Development
The My Thuy Port project, approved by the Prime Minister in 2019, represents a significant addition to the burgeoning port infrastructure in Vietnam. Spanning a substantial area of 685 hectares, the project encompasses ten strategically planned wharves, scheduled for completion by 2036. Strategically positioned as a gateway to the East Sea/South China Sea, My Thuy Port serves as a pivotal hub in the east-west economic corridor, connecting Vietnam’s Quang Tri province with neighboring countries Laos, Thailand, and Myanmar. This strategic location will facilitate seamless trade flows and contribute to the region's economic growth and development.
c. Economic Corridor and Future Plans
The investor announced plans to complete two to four wharves and essential technical infrastructure by 2025, enabling the port to accommodate vessels of up to 100,000 tonnes. In addition to this key project, Quang Tri province is also actively pursuing other significant developments, including the establishment of the Quang Tri Industrial Park, the construction of Quang Tri Airport, and the development of the Hai Lang LNG Power Center.


5. CAN GIO PORT CONSTRUCTION PROJECT

a. Port Location and Cargo Volume
The Can Gio International Transshipment Port, a major addition to port construction in Vietnam, will be built at the mouth of the Cai Mep - Thi Vai River in Ganh Rai Bay. This port is poised to become a key international shipping hub for Ho Chi Minh City and the surrounding region. The projected cargo volume through the Can Gio International Transshipment Port is impressive, with forecasts indicating it will reach 4.8 million TEU by 2030 and a substantial 16.9 million TEU by 2047.
b. Economic Benefits and Development
The construction of the Can Gio International Transshipment Port is expected to significantly benefit Vietnam's economy. The port is projected to create thousands of jobs and generate billions of dollars in revenue for the government each year. In addition, the project will help to develop the region's infrastructure and create favorable conditions for domestic shipping companies to grow. This growth will contribute to the overall economic development of Vietnam and promote the establishment of an international financial center in HCM City.
c. Project Phases and Funding
The port project will be implemented in seven phases, with the first phase expected to be completed before 2030. The construction costs for the port, auxiliary facilities, logistics service centers, and non-customs areas will be funded by investors. The state budget will cover the investment costs for transportation and technical infrastructure, which will be implemented under the public-private partnership (PPP) model or other legal funding sources.