The Deputy Prime Minister requested the development of a strategy for establishing an international maritime center in Ho Chi Minh City.

This request was made after the Private Economic Development Research Board (Board IV) submitted a report related to logistics and import/export activities.

Accordingly, Deputy Prime Minister Nguyen Chi Dung assigned the Ministry of Construction to take the lead and coordinate with the Ho Chi Minh City People's Committee and relevant business associations to develop a strategy for the development of an international maritime center in the city.

At the same time, relevant units are studying the development of a strategy for inland waterway transport in Ho Chi Minh City and Hai Phong . The Deputy Prime Minister encouraged all parties to proactively propose new approaches to coordinating the public and private sectors, and report to the competent authorities for consideration in the first quarter of next year.

Container ship docks at Cai Mep – Thi Vai port area in Tan Phuoc ward. Photo: Ha Nguyen

These two strategies were proposed by Committee IV in a previous report submitted to the Government, aiming to increase the competitiveness of the maritime and logistics sector.

According to feedback from the business community, Vietnam's logistics operations have not yet reached their full potential. Vietnam remains in a position of "logistics import surplus," with its port system primarily providing cargo handling services, equivalent to about 20% of the functions of an international maritime hub according to world standards.

Most value-added services such as shipbuilding, ship repair, finance, marine insurance, and related digital technology services are located outside the port area and depend on foreign businesses.

Meanwhile, Vietnam possesses numerous advantages, with its strategic geographical location on international shipping routes accounting for 65% of global trade, and ranking among the top 17 countries with the largest trade volume in the world. Furthermore, the Cai Mep – Thi Vai port complex is capable of accommodating the world's largest super-ships of 24,000-25,000 TEU.

At a meeting of the Private Sector Economic Outlook (ViPEL) model at the end of September, Mr. Pham Quoc Long, Deputy General Director of Gemadept, stated that Vietnam loses approximately $1 billion annually due to its fragmented port system and low handling fees.

“If we connect the maritime center with the free trade zone (FTZ), the financial center, and the onshore service center, we can become a crucial link in the global supply chain,” he said. According to calculations, the Ho Chi Minh City maritime center project needs to mobilize approximately $10 billion over the next 5-10 years through a public-private partnership. This capital will be allocated to develop wharves, container yards, cold storage facilities, ship repair and logistics areas, and related services within the FTZ and the financial center.

Also in the report submitted to the Prime Minister, Committee IV highlighted several obstacles in logistics and import-export activities from the perspective of associations and businesses. Vietnam's inland waterway transport system suffers from a significant imbalance, contributing 20% of total national freight transport but accounting for only 2% of total investment in the entire transport sector during the 2001-2020 period. This proportion is projected to increase to 9.1% in 2021-2030, the lowest compared to the other four modes of transport: air, rail, road, and maritime.

Another limitation of the business is the limited sedimentation of waterways and the infrequent maintenance and dredging work.

On many major rivers, the channel depth only reaches 70-80% of the design standard, making it difficult for large-draft vessels to navigate. In reality, infrequent maintenance reduces transport capacity by 15-20% annually, forcing vessels to reduce their load or wait for high tide to move, and in some cases even causing them to run aground. The consequence is increased logistics costs while the efficiency of vessel operation decreases.

The Deputy Prime Minister instructed the Ministry of Construction to study the recommendations of Committee IV, aiming to improve transportation capacity and optimize both time and cost, and to report in the next quarter. The Ministries of Industry and Trade and Finance were asked to consider launching a campaign to reform administrative procedures, in order to facilitate businesses in their respective sectors.

In addition, the Ho Chi Minh City People's Committee will organize public-private dialogues this year to listen to the concerns of businesses, thereby promptly resolving obstacles and adjusting policies if appropriate.

Vnexpress

Source: https://vimc.co/pho-thu-tuong-yeu-cau-xay-chien-luoc-phat-trien-trung-tam-hang-hai-quoc-te-tai-tp-hcm/