Vietnam’s seaport development strategy remains half done

Vietnam’s seaport network has been developing very rapidly with a lot of seaports opening within a short time. However, Vietnam still cannot fully exploit the seaports due to the poorly equipped conditions and the lack of competitiveness in comparison with regional ports.

Seaports numerous, but…

The Hai Phong port development company is following a plan to expand the Hai Phong port towards the sea, under which seven piers capable to receive 20,000 ton ships will be built, and a deep water port in Lach Huyen, where there is the natural stable depth of 12-13 metres.

However, Deputy General Director of the company, Nguyen Hung Viet, complains that the company is facing big difficulties in implementing the plan, because of the weak traffic connection.

The waterway passage to the Hai Phong port is getting dry after many years of lacking regular dredging. The Dinh Vu Port is designed to be capable to receive 20,000 DWT ships, but the current passage only has the actual depth enough for 10,000 DWT ships. The road always witnesses traffic jam, while the railway has not been upgraded for the last tens of years.

According to Phan Thanh Tien, Director of the Can Tho Port, though Can Tho is considered a key port in Mekong Delta, most farm produce (rice, fruits), seafood (shrimp, basa fish), industrial goods from the industrial zones of Tra Noc, Hung Phu, Khanh An, Hoa Binh, Vam Cong, Thanh Loc and Thuan Yen and other kinds of products have still been carried through the ports in HCM City instead of the Can Tho port, because the passage to the port has become dry.

Also according to Tien, a project on creating a new passage capable to receive 20,000 DWT ton ships was kicked off in 2009 already, but it would be put into operation only after several years

The bad conditions of the transport system that connects seaports and inland production and supply bases can be seen in HCM City, Ba Ria-Vung Tau and the central region’s provinces as well.

The bad conditions of the roads linking with Tien Sa port in Da Nang, the 25B highway linking to the Cat Lai port in HCM city, the D3 road from Hiep Phuoc Industrial zone to the Saigon-Hiep Phuoc port in HCM City, the roads to the Ben Nghe port and to the Thi Vai-Cai Mep port complex in Ba Ria- Vung Tau have been hindering the development of the ports.

The development of Van Phong international port with the huge investment capital of 3.6 billion dollars, was kicked off in 2009. The construction of the two harbors for big-tonnage container ships has not been completed, while the prospect of attracting transit container vessels remains unclear.

Meanwhile, another similar port project, also in the central region, has been drawn up and it may get the approval from competent agencies, on the expectation about the development of the East-West Economic Corridor, according to Minh.

…uncompetitive

To date, Vietnam has built up 320 wharves with the length of 45 kilometers, and has the seaport capable to receive 131,000 DWT. However, according to Bui Thien Thu, Deputy Head of the Vietnam Maritime Bureau, the bad connection with the inland production bases makes the expenses increase and the competitiveness of the seaports decrease.

Meanwhile, Nguyen Hung Viet believes that Vietnam’s seaport system has been developing too rapidly with too many small seaports and few big ports, especially specialized ports for container ships. The unreasonable investment strategy has led to the waste of money and resources, while Vietnamese ports remain uncompetitive if compared with other regional ports, though Vietnam has favorable natural conditions.

Viet believes that all the existing problems in developing seaports can be settled. The Hai Phong City’s authorities, for example, collect 34 trillion dong in 2010 from customs service fee and 32 trillion dong in the first eight months of 2011, and the city absolutely can spend 200-300 billion dong to dredge the passage and upgrade roads – the work that will bring more money to the city in the future.

Source: TBKTSG

Tags: Vietnam Seafood, Vietnam seafood exports