Da Nang urged to upgrade poor logistics infrastructure

Da Nang, the coastal city that serves as the major entrance to trade in the central region, must develop its logistics sector to take advantage of its trade potential, experts have said.

Lu Bang, deputy director of Da Nang’s Department of Industry and Trade, said the city should consider seaport services to be one of its key economic sectors.

Da Nang could be the major entrepot for the central region since it is the final roadway on the East-West economic corridor that extends through Myanmar, Thailand, Laos and Viet Nam.

“Domestic and international trade in the city is very active, and logistics should be developed to meet demand,” Bang said.

Dr Le Van Bay, a logistics researcher, said modern logistics services and infrastructure would enhance trade and tourism and help attract more investment in industrial parks.

Da Nang also needed new policies that would enhance the quality of human resources and fair trade, he added.

Bay said the total volume of goods via ports of Da Nang last year was 3.3 million tonnes, equal to 89,000 TEUs (twenty-foot equivalent unit).

The city has 10 wharves with a capacity of 5,000DWT to 45,000DWT and a total warehousing capacity of 299,000sq.m.

The city is also conducting four projects on port development and logistics services that include the construction of Son Tra Port, expansion of Tien Sa Port, construction of a 20ha logistics centre and a modern container handling port. The total cost is VND1.5 trillion (US$71 million).

Nguyen Thi Hoang Thuy, deputy director of the multilateral trade policies department under the Ministry of Industry and Trade, said Vietnamese logistics was lagging behind other countries in the region.

Thuy, who is also director of the EU-Viet Nam Multilateral Trade Assistance Project (MUTRAP III), said logistics was 15-20 per cent of the country’s GDP last year, which was almost double that of Singapore, where logistics took up only 8-9 per cent of GDP.

She urged localities like Da Nang to develop a strong logistics sector.

MUTRAP III and the city Department of Industry and Trade held a conference yesterday with local authorities and businesspeople to increase awareness on the importance of logistics.

Source VNS

Tags: Vietnam logistics industry