Spotlight: Vietnam – Up and Coming Air and Ocean Cargo Shipping Hub
- Vietnam’s economy has experienced rapid growth since the 1986 economic reforms and growth in international exports to Europe and the United States has accelerated in the past 5 years.
- Exports and imports have grown multi-fold and while there is a trade deficit, this gap is expected to narrow as export industries continue to grow.
- Containerized volumes have grown every year by almost 20%. However port and infrastructure improvements will need to continue to keep up with the growth trend.
- 24 of Vietnam’s 126 ports handle ocean cargo shipping however the country currently lacks deep water port facilities and can currently only handle small feeder ships. Development of deep-water ports are planned and should lead to large improvements in international cargo shipping activity.
- Vietnam’s logistic industry is still being developed and the country currently lacks in key infrastructure including warehousing and depot facilities to match with demand. Logistic costs can be a significant contributor to the high cost of doing business in Vietnam. Improvements over the past 10 years have brought down these costs significantly and these should continue to drop as Vietnam continues to invest in new infrastructure and technology to meet international shipping standards.
- Various companies (including companies in China) are now producing their commodities in Vietnam…the main question is can Vietnam handle the growing exports?
Ocean and Air Port Information:
Ho Chi Mihn city serves as the key port for both ocean and air imports and exports. More than 70% of Vietnam’s transport containers pass through this port. Due to recent growth, congestion has become and will continue to be a problem as container volume growth exceeds port capacity expansion plans.
Alternate ports near Ho Chi Mihn are being developed as well as new international ports at Van Phong Bay (near Nha Trang) and Cai Lan in Quang Ninh providence.
Three international airports serving Hanoi, Danang and Ho Chi Mihn City handle international air cargo shipping. To meet the increased demand in passenger and freight traffic, the government has plans to develop an additional 3 international airports by 2015.
- Major exporter of seafood, rubber, rice and coffee
- Agricultural and aqua-products sector contributes to 30% of GDP
Vietnam has good potential to develop into a major air and ocean cargo shipping hub in Asia. As improvements are made to the ports, infrastructure and the logistics industry opportunities for shipping to and from Vietnam will continue to expand.