Vietnam depends on exports and fast development of container transport. However, due to poor infrastructure, cargo handling has to be done twice. The advantage of a long coastline and many sea ports become meaningless when 14 out of 114 sea ports are only of medium size by world standards.
Big number but inefficient
Vietnam has over 300 berths with a total length of more than 36 km. The sea ports are under the management of several ministries, agencies, enterprises, localities, management boards of industrial zones and economic zones. With a rate of 6 % in berth development, Vietnam has additional 2 km of berth each year.
However, cargo concentrates mainly in Haiphong, Da Nang, Quy Nhon and Ho Chi Minh City. While container transport increases in the world, most Vietnamese sea ports cannot handle ships beyond 50,000 DWT. 8.84 % of the ports can receive ships of 30,000-50,000 DWT. 8.07 % can receive ships of 20,000-30,000 DWT. 35.38 % for 10,000-20,000 DWT and 46.53 % for below 10,000DWT. Ships of 80,000 DWT and container ships of 6,000 DWT upwards cannot use Vietnamese ports.
Most Vietnamese sea ports are connected with networks of roads, but they are often bottlenecked. A number of ports were built in densely populated areas and the transport can only be done at night with low efficiency. While railways are more efficient, it is only available in Haiphong port at night time.
Concerning cargo handling technology, only a few ports such as Chua Ve (Haiphong), Tien Sa (Da Nang), Tan Cang, VIC, Ben Nghe (HCMC) have modern equipment. The rest are poorly equipped with ordinary facilities or cargo handled by ship cranes,
Logistics fees in Vietnam are higher than other countries due to additional fees for transit shipments of US$400 per container. Meanwhile logistics fees in other countries are much lower, for instance, in the US (9/5 % of GDP), Japan (11 %), China (21.6 %).
At present, only 9 Vietnamese ports can be upgraded to receive ships of 50,000 DWT, or equivalent of 3,000 TEU containers.
Solutions
At a forum “Vietnam Seaport Services and Trade Logistics” held recently in Hanoi, Mr. Vuong Dinh Lam, Head of Maritime Department, said that Vietnam is considering a seaport planning such as Van Phong transit port, Thi Vai – Cai Mep port (moving from HCMC). Van Phong port with 22-metre depth and within the main international shipping line can be a port for East-West or North-South shipments for container ships of 9,000-12,000 TEUs.
Mr. Nguyen Tham, Vice President, Vietnam Cargo Handling and Storage Association recommended the government to promote linkage between concerned enterprises so as to be able to compete with other companies in the region and the world.. In order to ensure successful economic integration and create a free service region, Vietnamese enterprises must be capable of supplying service at home before the invasion of foreign companies
The representative of Vietnam Maritime Stock Bank (MSB) said that in recent years, the Vietnam maritime sector, especially seaport and trade logistics have made progress. With the communication and transport strategy to 2020 approved by the Prime Minister, the investment in 2005-2010 is nearly VND60,000 billion. The development also needs the cooperation and support of banking and financial organizations on capital management, financial consultancy, payment service. Those demands are both opportunities and challenges to commercial banks to provide suitable services to develop Vietnamese maritime sector.
Huong Ly
Vietnamese
