Hai Phong Port - Gateway to the City

With difficulties in first-days of opening, especially difficulties in economic recovery and development after wars, Hai Phong Port has tried its best to tap into its support from agencies, ministries, local authorities and Vietnam National Shipping Lines Corp (Vinalines) to reform its management system, boost human resources training programs and upgrade infrastructure to raise competitiveness. Ceaseless efforts from the Hai Phong Port Management Board have laid a firm foundation for the development of the port. The port always reports higher handling year by year. In 1988, the port could handle goods of 2.98 million tonnes with total revenues of VND5.7 billion. The figure reached 12.3 million tonnes in 2007 with total revenues of VND689 billion. The port targets to handle goods of 14 million tonnes this year.

 

However, in comparison to the regional and port services, especially when Vietnam has become a member of the World Trade Organisation (WTO), and Vietnam Seaports Association becomes a member of the Southeast Asia Seaports Association, achievements made by Hai Phong Port are not up to their potential and it does not keep pace with regional economic development.

 

This is a thorny issue for the Port Management Board. Though the port has made great contributions to the national and provincial economic development over the past years, there are shortcomings that are needed to be dealt with, as they are obstacles to the port’s development. The shortcomings include weak and backward management mechanism, big investment but low profits, and low quality services. Though the port strives to deal with the shortcomings, they have not been improved enough to achieve the level of development that is demanded.

 

To cope with shortcomings and satisfy development demands, a new operation model has been planned for Hai Phong Port: ONE MEMBER COMPANY LIMITED. The new model was officially put into operation on June 01, 2008. This has been a turning-point for the port development, creating favourable conditions for changes in both quantity and quality. Thanks to changes, construction on 20,000-ton wharfs in Dinh Vu has picked up the pace of construction. The wharf was put into operation in 2008; In addition, construction on Lach Huyen Port also need attention from local authorities to finish all necessary procedures to start construction. Other infrastructure including seaports, storehouses, grid power network; and unload and load equipments still need to be sought after and developed into the port.

 

The port has set a target to handle 25 million tonnes with total revenues of VND1.2 trillion by 2013. This is a feasible target, Port Authority said, adding that the port also aims to finish construction on seven 20,000-ton wharfs in Dinh Vu Industrial Park, high-rise buildings, offices for lease and hotels at No. 16 Hoang Dieu Street and No. 3 Le Thanh Tong Street. Management reform will also be in place at many of the firms in charge of developing the port area. Improvement of skills of its members to further open its business activities and diversify business projects will be put into place. This will, according to the ports plan, help the port achieve its set targets and meet development demands in the process of industrializing and modernizing the port area.