Vietnam’s port infrastructure is currently ranked 97th out of 137 countries by the World Economic Forum. Strong export growth and manufacturing industries becoming an increasingly important part of Vietnam’s economy.
As ports play an important role in export trade, Vietnam’s port infrastructure in under pressure to meet these needs, unfortunately in most cases Vietnam’s ports lack adequate capacity. Despite lacking modern and efficient port facilities, Vietnam’s port throughput quadrupled between 1999 and 2009, and looks set to continue growing at a rapid pace. Vietnam’s port infrastructure is currently ranked 97th out of 137 countries by the WEF.
Even the largest of Vietnam’s ports have struggled to keep pace with demand and the need for efficient deep-water ports in the country. Vietnamese ports have lacked sufficient draft-depth to accommodate the largest container vessels, this has meant that transhipment at deeper ports like Hong Kong and Singapore has often been necessary, significantly increasing the cost of shipping. This has significantly increased the cost of exporting from Vietnam. However, in early 2011 Vietnam’s first deep-water transhipment port, the Tan Cang International Terminal, was opened.
The volume of freight handled through Vietnamese ports could increase to as much as 1.1bn metric tonnes by 2020, from 172.1m tonnes in 2009. Current government plans could see USD 21bn invested in Vietnam’s port infrastructure this decade.
Currently, one of the most exciting areas in terms of port development is the Cai Mep – Thi Vai region in Southern Vietnam, close to HCM City. Ports under construction or recently completed in this region include Tan Cang International Container Terminal, SP-PSA International Terminal, Cai Mep International Terminal and Saigon International Terminal.
The need for large efficient ports and world-class cargo processing in Vietnam is clear, and current progress suggests further improvements to come. Without a doubt ports will play a pivotal role in Vietnam’s economic growth over the next ten years.
