Promoting the advantages of connecting and developing logistics routes in Vietnam

On October 28, 2023, Tan Cang Saigon (TCSG) organized a seminar on "Enhancing connectivity to develop Vietnam - Cambodia logistics service routes" in Phnom Penh, Cambodia with the participation of more than 150 guests representing Cambodian and Vietnamese agencies, associations, and logistics experts from Vietnam, Cambodia, Myanmar, and Thailand.

The workshop was attended by Mr. Nguyen Huy Tang - Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the Kingdom of Cambodia, representatives of the Ministry of Trade, Ministry of National Defense , CPC Inland Waterways Administration; with the direct and online participation of more than 400 import-export and logistics enterprises of Cambodia and Vietnam.

Potential for Vietnam - Cambodia logistics development

Logistics between Vietnam and Cambodia in recent years has been comprehensively promoted, constantly developed, and increasingly connected. With the advantage of sharing a border of more than 1,130km, bilateral trade between Vietnam and Cambodia has continuously grown. Vietnam-Cambodia trade turnover in the period 2015-2022 increased by an average of 18.5% per year, especially trade turnover in 2021 grew strongly by 79% over the same period in 2020, despite being strongly affected by the COVID-19 pandemic.

Vietnam is a large and important trading partner, helping Cambodian goods easily access key seaport areas, facilitating exports to countries around the world. Meanwhile, Cambodia is located in a "golden" position in the Mekong sub-region, a convergence point on the East-West economic corridor, connecting Vietnam and countries in the region. The potential for Vietnam - Cambodia logistics development is still very large, with the ability to strengthen connectivity to create a more efficient and seamless logistics system, while bringing benefits to businesses and economies on both sides of the border.

Optimizing costs for Cambodia's import and export goods

According to data from the General Department of Vietnam Customs in 2022, the volume of transit goods by waterway - a "green transport solution" connecting Vietnam - Cambodia via the Mekong River is more than 394,000 TEU; of which, Tan Cang Saigon accounts for a market share of waterway transport of 56% for imported goods and 49% for exported goods.

It can be said that for Tan Cang Saigon, the logistics operation on the Vietnam - Cambodia route is considered the "blood vessel" in Tan Cang Saigon's strategy to expand and develop the market in Cambodia as well as other countries in the region.

Tan Cang Saigon owns a cluster of 03 ports (Tan Cang - Cai Mep Port, Tan Cang - Cai Mep International Port and Tan Cang - Cai Mep Thi Vai Port) in Ba Ria - Vung Tau province and Tan Cang Cat Lai Port in Ho Chi Minh City, which plays the role of a transshipment and transit port, an important "bridge" for Cambodian goods to connect with the world .

In addition, with the barge transport service on the Ho Chi Minh/Cai Mep - Phnom Penh route, provided by Tan Cang Cypress Joint Stock Company and Tan Cang Waterway Transport Joint Stock Company, Vietnamese and Cambodian enterprises can reduce the time of transporting goods and optimize logistics costs. In addition, enterprises in industrial parks near the border trade areas of Moc Bai and Hoa Lu border gates can use the road transport services of Tan Cang Tay Ninh Joint Stock Company. Tan Cang Saigon Corporation will also soon build and put into operation Tan Cang Tay Ninh ICD, 70 km from the Port in Ho Chi Minh City and 2.8 km from Moc Bai border gate. This is an ideal location for implementing logistics services and cross-border freight forwarding, the Depot service for coordinating empty containers helps enterprises in the economic zones near the border gates of both Vietnam and Cambodia to save maximum logistics costs.

During the discussion, many delegates were interested in Tan Cang Tay Ninh ICD and expected that the ICD, when put into operation, would create favorable conditions and help businesses cut costs. Mr. Nguyen Huy Tang - Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the Kingdom of Cambodia expressed his absolute confidence in the effective solutions that Tan Cang Saigon has been implementing in the Cambodian market, contributing to promoting the socio-economic development of the locality and strengthening import-export links between Vietnam, Cambodia and countries in the region.

The recommendations and solutions proposed by logistics experts at the workshop will help strengthen connectivity and strongly develop logistics services on the Vietnam - Cambodia route, contributing to ensuring a smooth and effective supply chain. However, in addition to the advantages and potentials, there are still many difficulties that need to be resolved by not only state agencies and local authorities but also the business community of Vietnam and Cambodia, especially regulations related to customs procedures for transit goods and fees. Mr. Bui Van Quy, Deputy General Director of Saigon Newport Corporation, affirmed that he will work with shipping line partners and domestic and international logistics associations to provide the best services with competitive policies for customers, helping businesses in both countries save maximum logistics costs.

At the end of the workshop, Saigon Newport signed a memorandum of understanding (MOU) with Phnom Penh Port (PPAP) marking a strategic cooperation step between the two leading port operators of the two countries. The cooperation between the two ports will help improve efficiency and reduce logistics costs, contributing to the sustainable development of businesses, while also promoting economic and trade development between Vietnam and Cambodia. The workshop ended with more potential for cooperation for import-export and logistics businesses in both Vietnam and Cambodia.

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