Provinces and cities in the Central region are focusing resources on completing infrastructure so as not to miss the logistics "train", which is expected to create a major economic shift for the locality and region in the near future.
Transport infrastructure advantages – new driving force on the logistics “train” in the Central region
Provinces and cities in the Central region are focusing resources on completing infrastructure so as not to miss the logistics "train", which is expected to create a major economic shift for the locality and region in the near future.
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| Van Phong Economic Zone ( Khanh Hoa province) is expected to become a gathering and transit point for goods in the South Central and Central Highlands regions. |
Great Expectations
With advantages in transport infrastructure, seaports, and economic zones, Quang Ngai has great opportunities to promote logistics development. In particular, Dung Quat Logistics Center is oriented to be invested as a regional logistics center.
Recently, working with Quang Ngai province, Minister of Industry and Trade Nguyen Hong Dien assessed that Quang Ngai has great potential for developing marine economy, transportation services, especially developing heavy industry with 3 key industries including petrochemical refining, steel rolling and shipbuilding. At the same time, this advantage is also an important premise for developing logistics services, marine tourism, etc.
To do that, according to Minister Nguyen Hong Dien, Quang Ngai needs to flexibly apply effective investment models to mobilize social resources for investment in infrastructure development, especially connecting traffic infrastructure, logistics infrastructure, etc. to promote investment attraction.
When logistics costs are low, other investors will come to the Central region in general and Quang Nam in particular. 
– Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Auto Corporation (THACO)
In particular, the province needs to proactively promote the connection between Dung Quat Economic Zone and Chu Lai Open Economic Zone to form a key coastal industrial center of the Central Coast region and the whole country; at the same time, build Dung Quat into a national oil refinery and energy center.
“First of all, the province needs to focus on investing in developing a synchronous, modern, and convenient logistics system; at the same time, increase investment in connecting transport infrastructure to develop Quang Ngai into a multimodal transport and transit logistics center connecting the Central region, the Central Highlands region, and Southeast Asian countries... From there, Quang Ngai will gradually become a gateway for transporting goods across the East Sea and gradually form a logistics center for the whole country,” the Minister of Industry and Trade acknowledged.
Mr. Nguyen Hoang Giang, Chairman of Quang Ngai Provincial People's Committee, said that Quang Ngai has great potential in developing the marine economy, especially heavy industries associated with Dung Quat deep-water seaport. Therefore, the locality is calling for businesses to invest in industrial park infrastructure, high-tech industry, processing, manufacturing, supporting industry, logistics; semiconductor industry... Along with that, the province will build linkages to develop logistics in the port area and outside the area, in order to minimize service costs, improve the efficiency of logistics activities in the locality; taking the basis from businesses currently providing transportation and loading and unloading services in the province as the core...
Giving advice to Quang Ngai province, Mr. Nguyen Hoang Anh, Chairman of the State Capital Management Committee at Enterprises, said that in the immediate future, the province needs to allocate resources to develop a complete and synchronous infrastructure. In particular, fully exploit the advantages of Dung Quat deep-water port and Chu Lai airport to build this place into a logistics center for the whole region.
According to Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Auto Corporation (THACO), in recent times, THACO has developed investment in automobile assembly production, developing the production of components and spare parts to increase the proportion of logistics input and develop logistics services in Quang Nam.
“The results that THACO has achieved are to establish the role and position of a driving force enterprise of Quang Nam province. Along with this development, we aim to ensure that the investment and development goals of THACO and Quang Nam province continue to develop sustainably,” Mr. Tran Ba Duong affirmed.
THACO Chairman added that THACO has invested in ports and systems, but logistics service costs are still about 20% higher than those in the other two parts of the country. To deal with this difficulty, THACO has imported components for production, assembly and export, but the current difficulty is that there is still a shortage of goods.
“If we invest in infrastructure early, large cargo ships can enter, then the cost problem will be solved.
logistics. When logistics costs are low, other investors will come to the Central region in general and Quang Nam in particular," Mr. Tran Ba Duong analyzed, at the same time expressing his belief that Quang Nam becoming a logistics center for goods in the Central region is very feasible.
Shake hands on the "race track"
Referring to the potential and advantages of logistics development in Khanh Hoa province, Mr. Nguyen Tuan Anh, Chairman of the Board of Members of Tan Cang - Petro Cam Ranh Company Limited (under Saigon New Port Corporation) emphasized that Khanh Hoa has 3 large bays, with natural deep-water ports, sheltered from the wind, which are ideal conditions for exploitation, thereby increasing the value of import and export of goods. Orienting Van Phong Bay as the logistics center of the province and the region is reasonable, but only after 2030, because currently, this area is not developed. Meanwhile, if Cam Ranh international port is well exploited, it will promote its value, bringing in huge revenue for the province in the coming years.
Speaking to reporters from Dau Tu Newspaper, Mr. Nguyen Tan Tuan, Chairman of Khanh Hoa Provincial People's Committee, said that the important factor for the development of the logistics industry is the input (source of goods). The problem is how to make Khanh Hoa province a gathering and transit point for goods in the future, not only for the locality, but also for the entire South Central and Central Highlands regions.
To solve this problem, Khanh Hoa province has been focusing on completing transport infrastructure, seaports, airports, etc. In particular, the province will maximize the advantage of connecting with the Central Highlands, when the Khanh Hoa - Buon Ma Thuot Expressway Construction Investment Project Phase I and the North - South Expressway Construction Investment Project Eastern Phase 2021 - 2025 (Van Phong - Nha Trang section) are completed.
According to the assessment of the Chairman of Khanh Hoa Provincial People's Committee, when completed, these projects will create a network of connections, creating a driving force for development links between Khanh Hoa and Dak Lak, between the Central Highlands and the South Central Coast, and the main connection point will be in Van Phong Economic Zone, due to its favorable location in terms of deep-water ports.
At that time, goods from the Central Highlands and South Central provinces will be concentrated at seaports in Van Phong Bay for export to countries in the region and the world. In the opposite direction, this is also the place to receive imported goods from abroad.
Recently, Khanh Hoa province has developed a plan to develop logistics services in the province until 2025. Accordingly, Khanh Hoa will develop logistics services into an important economic sector of the province. The locality will focus on developing general ports, specialized for large-capacity ships in Van Phong and Cam Ranh, creating a driving force to promote the economy of the South Central and Central Highlands regions.
Accordingly, Cam Ranh international port will develop into a large logistics service center of the province, the South Central and Central Highlands regions, as well as the whole country, and build an international transit port in Van Phong Economic Zone, capable of receiving container ships with a capacity of up to 24,000 TEU.
Khanh Hoa province calls for and promotes investment in logistics service projects according to approved planning to develop logistics infrastructure, apply new technology in developing logistics services, enhance human resource training, and support businesses to develop logistics in a modern and professional direction.
“The development of logistics services in Khanh Hoa province by 2025 will also contribute positively to improving the business environment, cutting costs, and enhancing competitiveness in providing logistics services in Khanh Hoa province,” Mr. Tuan shared.
Not staying out of this “race”, Phu Yen also focuses resources to invest in developing 3 logistics centers, including the logistics center in Dong Hoa and the inland container depot (ICD) serving Vung Ro port and Bai Goc port; the logistics center in the West of Tuy Hoa city; and the Song Cau logistics center associated with industrial parks.
Regarding logistics infrastructure investment, Phu Yen will focus on attracting investment in developing logistics infrastructure, transport infrastructure, warehouse infrastructure and new applications in logistics; building logistics centers in the South Phu Yen Economic Zone and industrial parks and clusters to improve the efficiency of connections between Phu Yen and the Central and Central Highlands provinces; investing in the construction and upgrading of Vung Ro general port to meet the import and export needs of goods, serving the socio-economic development of Phu Yen and the Central Highlands provinces.
In particular, recently, Phu Yen “joined hands” with its neighbor Khanh Hoa province to cooperate in developing many fields and industries, including logistics. Accordingly, Khanh Hoa province supports the introduction and connection of businesses and investors interested in researching and investing in forming a logistics center in Phu Yen province to link with Khanh Hoa’s logistics centers, creating strengths and competitiveness in the region and the area; calling on and mobilizing manufacturing and processing enterprises of the two provinces that have the need to invest in factories in industrial parks and industrial clusters in Phu Yen and Khanh Hoa provinces…
With the efforts that localities in the Central region have been making, the logistics "train" is expected to accelerate more and more strongly.
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