SNP, VSIP Enter into Strategic Partnership in Logistics

Saigon Newport Corporation (SNP) and the Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP) entered into a strategic partnership in the field of logistics on September 9, 2023. The memorandum of understanding was signed at the inauguration ceremony of the Vinh Thanh Industrial Park - VSIP Can Tho in Can Tho City. The aim of this partnership is to offer optimal and efficient logistics solutions for enterprises operating in VSIP’s key industrial parks.

In 2023, Vietnam and Singapore celebrate the 50th anniversary of their bilateral relations and the 10th anniversary of their strategic partnership. As a follow-up to the official visit of Singaporean Prime Minister Lee Hsien Loong to Vietnam on August 28, Saigon Newport Corporation (SNP) and VSIP signed a memorandum of understanding on strategic cooperation in the field of Logistics at the inauguration ceremony of the Vinh Thanh Industrial Park - VSIP Can Tho. 
The ceremony was attended by government officials, local authorities, businesses, investors, and partners of VSIP.
The memorandum of understanding between SNP and VSIP reflects a sustainable collaboration between two leading industry players in port-logistics operations and industrial park development. The collaboration aims to leverage the strengths and business ecosystems of both parties to offer comprehensive and efficient logistics solutions that support the development of digital and green economy. The solutions are based on the following pillars: Improving the efficiency and quality of end-to-end logistics services with a focus on cost optimization; Enhancing the competitiveness for enterprises operating within VSIP’s industrial parks; Investing in Depot development within industrial parks, especially in the Can Tho region.

Can Tho, recognized as the gateway city and economic hub of the Mekong Delta region, plays a pivotal role in both domestic and international transportation networks. Positioned advantageously with a natural geographical location and an extensive waterway system connected through the Quan Chanh Bo channel, Can Tho is strategically poised to become a key logistics center in the Mekong Delta region. It will serve as a vital link for cargo transportation from the Can Tho port cluster to the Ho Chi Minh City and Cai Mep port clusters, facilitating international trade routes within the Indo-Asia region. Therefore, the construction of a logistics system in the Mekong Delta region is extremely necessary, helping to further develop the import and export industry and create competitiveness for manufacturing and exporting enterprises in the Mekong Delta region.

With that potential, Saigon Newport Corporation owns a port-logistics ecosystem in the Mekong Delta region with 5 ports, including: Tan Cang - Cai Cui Port, Tan Cang - Thot Not Port, Tan Cang - Sa Dec Port, Tan Cang - Cao Lanh Port, and Tan Cang - Giao Long Port, accounting for nearly 70% of the total container throughput through ports in the Mekong Delta region; optimizing green logistics solutions with a fleet of over 120 self-propelled barges stretching from North to South, facilitating the smooth flow of cargo via inland waterways (capturing approximately 70% of the market share in the Mekong Delta region and 50% of the barge transportation market share to Cambodia).

In the Can Tho region, with its strategic location just approximately 5km away from the Vinh Thanh Industrial Park - VSIP Can Tho, Tan Cang - Thot Not Port (TCTN) provides significant advantages in terms of time and cost-efficient logistics for businesses in the area. With infrastructure that includes a 165m long berth, a total storage area for containers and general cargo of up to 1.1 hectares, as well as substantial investments in equipment, including 5 forklifts and 35 tractor trucks, TCTN plays a crucial role as a hub for collecting, consolidating, and handling containerized and general cargo for key industries like rice, seafood, livestock feed, and more. This cargo comes from Can Tho City and nearby provinces such as An Giang, Kien Giang, Dong Thap, and others. Furthermore, TCTN plays a vital role in the broader logistics network of the Mekong Delta. It offers comprehensive "door-to-door" water and land logistics services, connecting the Mekong Delta with Ho Chi Minh City, the Cai Mep port cluster, and international interregional transport routes, including Can Tho - Phnom Penh, Sihanoukville in Cambodia, and in the near future, it will connect to international destinations within the Intra-Asia region.

The comprehensive collaboration between Saigon Newport Corporation (SNP) and VSIP holds great promise for delivering significant benefits to the business community, particularly in the Mekong Delta region:

• Providing end-to-end logistics solutions encompassing transportation services, customs services, inspection and verification services, as well as assistance with licensing procedures for businesses.
• Offering advanced, environmentally friendly green logistics solutions through waterway transport using barges.
• Achieving cost savings in logistics of approximately 30% - 40% compared to current road transportation methods.
• Reducing infrastructure costs for barge transportation by 50% compared to road transportation.
• Gaining a competitive advantage in transporting heavy cargo, project cargo, oversized loads, and pre-planned shipments.

With the outstanding advantages of SNP’s logistics solutions, it will enhance efficiency and reduce logistics costs, contributing to the sustainable development of businesses in VSIP's industrial park in Can Tho and nationwide as a whole.

Quoc Khanh - Vietnam Business Forum