Port infrastructure varies region to region in Vietnam. Here, Vietnam Briefing compares port infrastructure in three key economic regions so that investors can make an informed choice about where to place their business.
Vietnam’s 1,900 miles of coastline and 320 ports increasingly serve an important role in global trade. In the first half of the year, Vietnam’s container traffic rose three percent year-on-year, while Hong Kong’s dropped eight percent.
With the high number of supply chain shifts to Vietnam, it makes sense that shipping demand is increasing in the country. But Vietnam’s long-term economic trajectory is likely to see this demand continue for years to come.
The government wants the country’s seaports to handle 200 million tons of cargo by 2020 and double that amount by 2030. While this planning develops, investors that need ports for imports or exports should consider the regional variation in the quality of port infrastructure before setting up.
Vietnam’s ports competitiveness
In the last 10 years, economic growth in Vietnam has led to a significant increase in freight traffic, highlighting the importance of ports for companies that invest in the country. While this trend suggests that the country’s ports are able to manage increased demand, it also highlights the need for further investment in infrastructure to keep pace with growth and reduce logistics costs for business.
According to the World Economic Forum, Vietnam ranks 80 among 139 countries on the quality of port infrastructure, with an average score of 3.80 on a scale of 1 (lowest) to 7 (highest) between 2006 and 2018. This means Vietnam ranks lower than countries such as China, India, Thailand, and Sri Lanka.
Vietnam has 44 seaports with a total capacity of 470-500 million tons per year. The major ports in Vietnam include Hai Phong, Da Nang, Qui Nhon, and Ho Chi Minh City. However, Vietnam has a number of smaller ports as well, which takes the total number of ports in the country up to 320.
The Vietnam Port Association (VPA) states that 80 percent of container exports and imports go through smaller ports and ships, a process known as transshipment. The VPA also noted that goods owners have losses of approximately US$2.4 billion each year due not using deep-water ports.
Here, we highlight major ports in the north, central and southern parts of the country that foreign investors can start to look at. While the government continues to expand port infrastructure, we give an insight into the most developed ports for investors to begin assessing a site location.
Follow the link below to find out about port infrastructure in:
Northern Vietnam
Central Vietnam
Southern Vietnam
