Vietnam seeks a US$13.77 billion upgrade for their port system to boost efficiency and global trade.
Vietnam is looking to upgrade their port system by 2030 and is seeking VN$313 trillion (US$13.77 billion) in funding by 2030 to achieve this target. This upgrade will optimise logistics, decrease road transportation, and boost trade opportunities.
According to the Vietnamese government, plans for 2021 – 2030 include two special graded terminals, Nam Do Son in Hai Phong and Cai Mep in Ba Ria-Vung Tau, and long term 2050 visions.
These two terminals will target international trade, focusing on exporting Vietnamese products to the US and Europe, two of the. country’s biggest export markets, allowing for quick and direct delivery without the need for intermediate transport hubs.
Vietnam’s other 34 ports will be categorised into three tiers, dependent on capability and location. Some larger ports will be connected with smaller ports through new roads and railways, and some smaller inland ports will be decommissioned.
The Deputy Minister of Transport, Nguyen Xuan Sang, said the new plan will focus on developing a shipping route between localities instead of relying on roads.
“Our country has a long coastline, why do we need to use roads while we can use sea routes?” he said, adding that on average shipping costs are lower than road delivery.
Through these newly optimised ports, logistics costs can be reduced, as well as dependency on road transport, which will allow for safer traffic within the country.
Vietnam is seeking for around 95 percent of funds for the port upgrade to be sourced from private companies and other legal sources, according to the Ministry of Transport of Vietnam.
Last Wednesday Vietnam reported a 6.2% third-quarter drop in gross domestic product (GDP), the country’s largest decline since they began keeping record. As the country faces many uncertainties in the wake of the ongoing pandemic, this port upgrade and improved international trade will assist with economic recovery.
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