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Tony Milton MRICS

BSc (Hons) Est Man
MRICS
APREA (CREIF)

Logistics
Monday, 16 March 2009

LOGISTICS IN THE NEWS

 

 

 

 

 

071107-In late 2007 the state­ owned Vietnam Railway Cor­poration (VNR) announced that it was joining forces with the Vietnam National Ship­ping Lines (Vinalines) to de­velop a series of Inland Clear­ance Depots (ICD) in focal economic zones along the national railway network. The 2 corporations are drawing up a plan for develop­ing 3 ICD centers in 3 regions of northern, central and southern Vietnam, mostly along existing rail­ways. In the first stage, VNR and Vinalines will build ICD Lao Cai in the province bor­dering China.

 

 

250907- Vietnam's strong economic growth is encouraging foreign logistics firms to expand operations throughout the country. Since early this year, seven international logistics companies from Singapore, China, Korea and the Europe have entered into joint ven­tures with local companies to provide logistics services. "Vietnam's total import and export turnover grows every year and this is a strong potential for the development of the logistics industry," business development manag­er of the Ahlers-Vina Logis­tics Company, Stephane Ghys, said in a recent meeting of international logistics busi­nesses in Vietnam. Ghys said the logistics sector was a key service industry and could possibly contribute up to 15 per cent of gross domestic product. This is not a small figure and the industry will have a direct impact on the competi­tiveness of local enterprises as well as the whole economy," he said. He explained the develop­ment of local logistics infrastructure would lead to oppor­tunities in global freight for­warding, development of con­tainer depots, warehousing, supply chain management and port projects. The Vietnamese Govern­ment is prioritising port pro­jects in all parts of the coun­try, particularly Cai Lan and Lach Huyen ports in the north, Van Phong port in the central region and Ba Ria­Vung Tau in the south. Vinalines chairman and CEO Duong Chi Dung said Haiphong's Lach Huyen port would become the north's most important gateway to receive heavy cargo ships from Vietnam's northern region and China's Guangxi province. The Van Phong port in the central Khanh Hoa province will become a modern inter­national facility, which can receive 15,000 TEU ships. "With the development of ports in the future, port ser­vices including loading and unloading, warehousing and stocking and other supporting services will become a boom­ing sector in Vietnam," Dung said. In April 2007, the China Merchants Group (CMG), a leading Chinese multi-busi­ness company, signed a $1 billion project with the state­ run Vinalines to turn Ben Dinh-Sao Mai port in Ba Ria­ Vung Tau province, which is one of 30 key national pro­jects in the 2006-2010 period, into a complex supplying oil largest and gas services, logistics, container handling services and a petroleum depot. "Participation of foreign logistics service providers which offer professional ser­vices, experience, technology and capital will help reduce costs of import/export ser­vices in Vietnam," Ghys said. In July alone, Korean Hyundai Merchant Marine (HMM), and the world's sec­ond logistics service provider, Austria's Schenker  Logistics Group, established two joint ventures with local Gemadept joint stock company to devel­op logistics services in Viet­nam. Gemadept-HMM joint venture provides international and domestic shipping ser­vices while Schenker ­Gemadept Logistics Vietnam develops warehousing ser­vices, supply chain management and customs clearance services in Vietnam. There are almost 1,000 logistics companies operating in Vietnam, including state ­run, private and joint ven­tures. Domestic firms are cur­rently able to meet 25 per cent of the whole market demand. Many of them are small firms, who only work as providers of sub-services to internation­al foreign providers. "There is a huge potential market in Vietnam and we are always overloaded with freight forwarding orders from international importers of Vietnamese goods," said Tran Hoai. VIR

 

 

 

220906- The establishment of the first wholly Singapore-owned shipping logistic firm received Prime Minister Nguyen Tan Dung's approval recently thanks to bilateral agreements supporting Vietnam's accession to the World Trade Organization. The Singaporean-invested APL­NOL Vietnam shipping logistic firm is in line with the two countries' agree­ment, which was signed in December 2005. The prime minister's approval allows the Ministry of Planning and Investment (MPI) to afford an invest­ment licence to APL-NOL Vietnam, which will be the first Singapore­owned firm of its kind in the country to follow in the steps of European Union and Japanese companies that already operate in the restricted sector. "Granting APL-NOL an invest­ment licence is under the prime minis­ter's approval. However, the shipping logistic sector will remain a restricted area until Vietnam becomes a full member of the WTO," said an MPI official. In its application, APL-NOL Viet­nam stated it will be capitalised at $1 million and provide shipping logistics services widely inside and outside of the country. Investments in Vietnam's shipping logistic sector remain under tight control, and foreign firms have, therefore, only been allowed limited involvement in the sector to prevent local shipping logistic firms from being subjected to fierce competition with foreign counterparts, who run with more capital and expertise. Under the Governmental Decree 10/2001/ND-CP, which provides guidelines to investment in shipping services, a foreign party can hold no more than 49 per cent of the total investment capital in any foreign invested venture companies. Currently, only one Danish ship­ping firm and one Japanese shipping firm are operating under wholly for­eign-invested status in Vietnam. The $1m Danish Maersk A/S, which opened last year, and the $3m Mitsui O.S.K.Lines Vietnam, which is expected to open next month, resulted from Vietnam's commitment to the European Union (EU) and Japan to provide greater space for their compa­nies in a restricted sector of the econo­my. The $2m CMA-CGM Vietnam, in which the French partner holds 51 per cent of the legal investment capital, also stems from the Vietnam-EU agreement. In the light of the Viet­nam-Japan agreement, Japan's "K" Line is also seeking to establish a ship­ping service venture, in which it will hold 51 per cent of total shares. VIR

 

 

150507- The Vietnam Distribution Associ­ate Network Development and Investment Joint Stock Company (VDA) owned by four leading local retailers was launched in Hanoi yester­day, becoming the country's largest distributor. The VND600-billion (US$37.5 million) company is 25% owned by each of Co.op Mart store chain op­erator Saigon Co.op, Saigon Trading Group (Satra), Hap­ro, and Phu Thai Group. Nguyen Thi Hong Minh, general director ofthe compa­ny, said VDA would become the country's key distributor and logistic services provider able to compete with interna­tional rivals. VDA took the occasion yesterday to sign a strategic cooperation agreement with three major partners, namely 'the Vietnam Association of Seafood Exporters and Pro­ducers (Vasep), the Bank for Investment and Development of Vietnam (BIDV) and Vietnam National Shipping Lines (Vinalines). The deal will help VDA expand business in the local market, she said adding, the company would contribute to making Vietnam's distri­bution sector more competi­tive. With the cooperation with Vinalines, VDA will have the opportunity to develop sea­ports as well as logistics sys­tems for import, export and transport operations, boost goods delivery and enhance the distribution system. Tying up with VASEP, VDA wants to use its cold storage and distribution facilities for seafood. BIDV will support finance for the company to invest in new projects. VDA will be the key local supplier of commodities for the four stakeholders' store chains as well as for export. It will also be further developed so that it can operate super­markets on its own. In the initial stage, VDA will develop distribution infrastructure, including warehouses, and assist the stakeholders to expand their distribution systems. By 2008, VDA will spend around VND1.5 trillion (US$93.75 million) to build general warehouses around the country, and set up sup­ply and export chains. In the next stage, VDA will set aside VND3 trillion to VND6 tril­lion to build shopping malls and wholesale centers. According to a representa­tive of Saigon Co.op, the new company is looking for good locations to develop some logistics facilities and big supermarkets. Under the country's commitments to the World Trade Organization, Vietnam will open up its retail and distribu­tion sectors by 2009. There­fore, the cooperation between the big four is seen as a pre­paratory step to improve their competitiveness in the face of a stronger competition. A number of international retailers have come to Viet­nam, including Metro Cash & Carry, Big C, Parkson, GS Retail and Lotte Shopping. Total retail revenue in Viet­nam in 2005 was put at around been increasing by some 20% an­nually. The domestic retail market has the third fastest growth rate in the world after India and Russia, according to VDA. SGT

 

 

251007-Announcement of Establishment of AGILITY Ltd. Full Name: Agility Limited Co. Abbreviated Name: Agility Ltd, Head Office Address: 147, Nguyen Tat Thanh, Dist.4, Ho Chi Minh City. Joint Venture parties : Vinatrans International Freight Forwarder + Trans-Link Vina Ltd + Agility International Logistics Pte Ltd. Legal Representative: Mr. Michael Deisemann Position: General Director Investment Licence No. 411022000118 issued by People Committee of Ho Chi Minh City on September 25th 2007. Registered capital: VND28 800.000.000 (USD$1,800,000) Investment Capital: VND32.000.000.000 (USD$2,000,000) Business Scope: Marine transport agency services; international forwarding services; domestics goods transportation; marine brokerage; warehouse services; logistics and cargo consolidation services; sales agency / cargo agency / charter operator for airlines and sea-lines. Vietnam News

 

 

150507- Middle East-based developers, flush with oil money, are turning their gaze towards Vietnam's real estate market, as other Asian investors continue to ramp up investment in the growing sector. Middle eastern developers represent a new trend in the market that has been dominated by investors from South Korean, Singapore and Taiwan. Some 20 companies from Dubai, Bahrain and Qatar are looking for opportunities in Vietnam. They are not only looking at logistics but also residential townships and commercial properties in Hanoi, Ho Chi Minh City and the central region. They are focusing on Vietnam because this is a new and untapped mar­ket. Kingdom Hotel Investments are among the first Dubai-based companies attempting to establish a foothold in Vietnam, acquiring a prime beachfront site in Danang to build a $65 million resort with 150 hotel rooms and 15 villas. Dubai Ports World is building a $230 million international port in Ho Chi Minh City as part of its plan to expand its glob­al operations. Sama Dubai has also been in talks with local authorities regarding the construction of a bridge in Quang Nam province. VIR

 

 

010906- Japan's Mitsui O.S.K. Lines becomes the second foreign shipping provider to win a licence to operate as a wholly-foreign-owned company in Vietnam after Danish shipping logistics firm Maersk A/S. Mitsui outbid two other Japanese companies to become the first Asian shipping company with the coveted status. The move is a part of Vietnam's larger commitments for WTO membership. "We were waitin, fm a long time due to many pro­cedures," Tokinao Hojo, Mitsui O.S.K. Lines deputy chairman, told Vietnam Investment Review. Under an agreement in November 2005 in which Japan supports Vietnam in its WTO bid, Vietnam had to open its market to Japan­ese shipping companies to ultimately select one for foreign-owned status. This stipulation is similar to a market access agreement signed between Vietnam and the EU, which brought in Maersk two years ago. Hojo said the situation was different for Mitsui O.S.K. Lines. "When asked by the Vietnam government, the EU could select one ship­ping company for actualis­ing the stipulation, whereas the Japanese government could not," he said. "Then the Vietnam gov­ernment has had to select from the three Japanese applicants. This process takes time," he added. It took Maersk five months to receive the investment licence, about half the waiting time of Mitsui. Hojo said the new ven­ture would officially start operations in October this year and would cater to increasing Japanese invest­ment in Vietnam as well as serve domestic and interna­tional businesses demand­ing high quality logistics and shipping. "We know many Japan­ese investors are facing logistic and infrastructure problems," he said. "Our investment licence also includes the logistic business and we hope to contribute to logistic devel­opment in Vietnam. Japan­ese companies will find it easier to come to Vietnam," he said. Hojo also said the for­eign-owned venture would help Mitsui add more ser­vices to satisfy Vietnam's "very fast growing market with a very big potential in the future". Together with the new shipping deal, he said Mitsui may also invest in a joint venture to carry out ship repair in Vietnam. "We plan to invest much more in Viet­nam," he said. Minister of Planning and Investment Vo Hong Phuc said he expected the Mitsui project to help promote Viet­nam's shipping industry and function as a catalyst for direct Japanese investment. Mitsui O.S.K. Lines Viet­nam will operate with invest­ment capital of $3 million, three times higher the invest­ment committed by Maersk, which expects to operate for 20 years. Both have seen the opening of Vietnam's ship­ping logistics sector with more foreign investors creat­ing healthy competition. VIR

 

 

240806-Dong Bang Vina Freight Forwarder, a subsidiary of South Korea's Dong Bang Transport Logistics Co made its debut in HCMC on Monday. The US$3.3m company, which pro­vides transport, forwarding and warehousing services, is build­ing infrastructure for a 15,000 sqm warehouse at Cat Lai 11 Port in the southern province of Dong Nai. The group's president, Kim Young Dae, said Dong Bang was attracted to Viet Nam because of the country's high economic growth rate of 7 to 8 per cent annually during the past five years. VNN

 

 

160806- The logistics sector, which is seen becoming an economic growth driver in the future, needs to further improve infrastructure and com­petitiveness to cope with chal­lenges to be brought by the country's entry into the World Trade Organization (WTO). Representatives of more than 50 local and international companies, including ship­pers, manufacturers, import­ers and exporters, logistics service providers, forwarders, airlines, shipping lines, ports and insurers, sat down together at a seminar held in HCMC yesterday by Vietnam Shipper journal to discuss a logistics development strat­egy for the future. Mark Ketelaar, country manager of DHL Exel Supply Chain in Vietnam and Cambo­dia, said logistics providers should focus on outsourcing to get more benefits for their supply chain. With more than 14 years' experience in logistics, Ketelaar said outsourcing was considered as a key driver for the supply chain because it helped gain greater flexibility, reduce cost, improve services to customers, focus on core business and provide a clearer view of distribution activities. Outsourcing logistics also helps local companies gain access to cutting-edge tech­nology and get wider man­agement experience and knowledge beyond their own industry, he added. Do Xuan Quang of the Viet­nam Freight Forwarders Association (VIFFAS), said air freight forwarding in Vietnam had been fast growing in re­cent years but there remained a wide gap between local com­panies and joint-venture and foreign ones. Local companies are facing problems such as poor and insufficient facilities, and fi­nancial constraint, which have made them less competitive internationally. Inconsistent regulations issued by authorities, such as customs, quarantine, terminal operators and ground han­dling organizations, has also left a negative impact on the operations of forwarders. However, Quang, who is also deputy managing direc­tor of Vinafreight Interna­tional Corporation, said he expected Vietnam's upcom­ing accession to the WTO would offer more opportuni­ties for the development of logistics services. The country will see more growth in gross domestic product (GDP), import-export activity and infrastructure in­vestment, he said. Local businesses at the seminar shared a view that poor and incomplete infra­structures as well as small and scattered warehousing sys­tems are hampering the logis­tics industry's growth. There are currently around 600 logistics businesses in Vietnam, which employ thou­sands of people. Recent statistics show these logistics service pro­viders meet around one ­fourth of the local demand. The logistics sector is pre­dicted to become an impor­tant economic spearhead in the near future and probably contribute up to 15% of national GDP. SGT

 

 

150902- At the moment, Viet Nam is still very uncompetitive in some areas like ports, logistics, telephone charges and Internet access. However, these are things that can be addressed if Viet Nam chooses to. It needs to introduce competition in these areas and by so doing, prices will fall and Viet Nam will become more competitive. Viet Nam doesn't need to be afraid of going into the global economy. It simply needs to prepare well for it. The most important thing is to change attitudes, to just be­come more welcoming to investors. Just give investors the feeling they would be treated well. They don't want special deals, they don't need tax breaks. All they want is predictability. So when they apply for a licence, they want to know that within a certain amount of time, they will get it.

 

 

South

 

 

HIEP PHUOC COMPLEX

 

 

190507-HCMC is inviting international consult­ants to participate in a contest to re-zone a port, logistics and freight forwarding complex south of the city. The city has announced requirements for the interna­tional competition aimed at selecting the best ideas for an urban and infrastructure development plan for the 3,600-hectare Hiep Phuoc complex in the outlying dis­trict of Nha Be. The contest is scheduled for opening in the last quarter of this year. The new master plan for the complex should focus on long-term economic planning for Hiep Phuoc as a hub of the port industry in the city and should include measures to develop the transportation and shipbuilding industries. Besides, the new master plan should help to increase the value of forwarding and logistics services as well as contribute to the city's economic restructuring plan in 2006-2010. Hiep Phuoc port complex will be home to container and multi-purpose ports which can receive ships of up to 50,000 DWT. The port com­plex will also include residen­tial projects with a population of 80,000-100,000, 50% of them current residents. SGT

 

 

060705- The HCMC government has decided to scale up a project to build the future Hiep Phuoc Port Com­plex along the Soai Rap River in HCMC's Nha Be District to replace existing seaports in the inner city. Vice chairman Nguyen Van Dua on Monday signed a decision to expand the port complex to 3,600 hectares by enlarging the 2,000-hectare Hiep Phuoc Industrial Zone in the current zoning plan. The additional 1,600-ha area will be for building a port town. Developers of urban projects, general port and specialized port projects will be welcomed to invest in the complex, accord­ing to the city authorities. As such, apart form ports to be built, the complex will also comprise an industrial zone and a port town. Tan Thuan Industrial Pro­motion Co (Tan Thuan IPC), which is the developer of the Hiep Phuoc Industrial Zone, has been named the project owner for the port complex, states the city's decision. Dua in the decision in­structs Tan Thuan IPC to make a master zoning plan for the new port complex by adding the detailed plan of 1,600-hect­are port town to the existing master plan of the 2,000-hect­are industrial zone. According the decision, "HCMC wants to develop Hiep Phuoc into a port com­plex with a cluster of general and specialized ports for the city and Vietnam's southeast region as a whole. "The complex is expected to help boost the development of relevant industries and services like shipbuilding, logistics, forwarding and warehouse services,” says the decision. In the years to come, the port complex will house new facilities built to replace some existing ports in inner-city areas that would be shut down between now and 2010. An official of Tan Thuan IPC said the city government early this year allowed the developer to partner with Australia's P&O Ports to build a container port in the com­plex. The Australian investor has already registered to lease a land plot of 20-30 hectares for 50 years to build the con­tainer terminal. P&O Ports has been requested to quickly complete the feasibility study for the project so that construction could start this year. Last year, the city govern­ment advanced a sum of VND100 billion from the state budget for Tan Thuan IPC to make compensation for clear­ing 600 hectares of land for the Soai Rap River. Several projects have been committed to Hiep Phuoc Indus­trial Zone so far, most relating to port and shipping services. SGT

 

 

P&O (HIEP PHUOC)

 

 

150805- UK port operator P&O, one of the biggest shipping companies in the world, is set to build a $300 million container terminal in the southern Vietnamese hub of Ho Chi Minh City, revealed a local official. Nguyen Van Loc, deputy chief of the Hiep Phuoc IZ authority in the Nha Be District, confirmed that P&O is to establish the joint-venture with Tan Thuan Industrial Promotion Company (Tan Thuan IPC), with the UK partner holding an 80 per cent stake. "The plan to establish the joint­ venture is expected to receive approval from the central govern­ment this year, making it the first for­eign-invested seaport to be built in the Hiep Phuoc IZ," Loc said. P&O has registered to lease 40 hectares (ha) of industrial-zoned land for a period of 50 years, requesting the quick completion of a feasibility study so that construction can begin in the first quarter of next year. The new container terminal pro­ject would serve as a replacement for existing facilities in the city, supply­ing port services for local and for­eign enterprises and neighbouring provinces. It is also expected that the termi­nal will replace existing container ports from inner-city areas in the coming years, with the scheduled closure of these facilities to take place between now and 2010, he said. The preparation process has taken almost three years to complete, with the new facility scheduled to supply an annual capacity of 1.5 mil­lion TEUs. Vietnam Investment Review also discovered last month that the Ho Chi Minh City government decided to expand the Hiep Phuoc Port Com­plex project along the Soai Rap River in Nha Be district, with the new venture expected to replace existing inner-city seaports. Under the decision, Tan Thuan IPC - the developer of Hiep Phuoc IZ - was granted permission to expand the port complex from 2,000 ha to 3,600 ha, providing a 1,600 ha area for the development of a port town. According to city authorities, developers of urban, general and specialised port projects are being encouraged to invest in the new complex which will also feature an IZ. "Ho Chi Minh City wants to develop Hiep Phuoc into a port com­plex with a cluster of general and specialised ports for the city and Vietnam's southeast region as a whole," said vice municipal mayor Nguyen Van Dua. "The complex is expected to help boost the development of relevant industries and services like ship building, logistics, forwarding and warehouse services," he said. The city government provided a VNDI00 billion ($6.3 million) advance from last year's state budget to Tan Thuan IPC, supplying the company with funding to clear 600 hectares of land for the port park and to dredge the Soai Riem River. VIR

 

 

 

CWT-SPL DISTRIPARK (HIEP PHUOC)

 

In late 2007 Singapore’s CWT International Pte Ltd was licenced for the CWT SPL Distripark at Hiep Phuoc IZ in Nha Be District with a duration of 41 years and a Charter Capital of USD$1,500,000 to provide leasing warehouse and storage services and other related services such as management, packaging, preservation, labeling and consolidation of goods.

 

 

CAI MEP-THI VAI PORT COMPLEX

 

 

260607-The trans­port ministry, in a move geared to develop a group pf ports in Ba Ria-Vung Tau, has an­nounced plans to construct a road linking up a network of ports in the Cai Mep-Thi Vai area and a forwarding and lo­gistics services center in the southern coast province. Transport minister Ho Nghia Dung said the ministry planned to build a center that provides logistics and other maritime-relevant services. After a recent fact-finding trip to Ba Ria-Vung Tau, Dung said the need for building a logistics center was critical, especially at a time when large­ scale ports are being devel­oped through 2010. To meet this need, Dung said the ministry would ask its planning and investment de­partment to draw up plans for a road that connects all ports in the Cai Mep-Thi Vai area. Synchronizing the devel­opment of infrastructure facilities with the development of ports is key to boosting the economy, he added. the planning and investment de­partment is also tasked with seek ODA for the inland road. Dung said developing an 11-km long inland road to run alongside the new ports was equally as important as the center. Therefore, if the in­vestment department is un­able to secure an ODA loan as soon as possible, the trans­port ministry will name Viet­nam National Shipping Lines (Vinalines) as developer of the road project. The deadline for complet­ing the inland road is set for the end of 2008. The inland road is expected to create connections among infrastructures, ports and in­dustrial parks. As well, the road will help meet the socio­economic development goals of Ba Ria-Vung Tau and other provinces in the south. In addition, the transport minister has urged relevant agencies to hasten preparations for what is now the largest deep­water port project in Ba Ria ­Vung Tau. Construction of the mammoth port was originally planned for2006-09,but due to delays it will be completed later than scheduled. Two years ago, the Govern­ment approved the feasibility study for the Cai Mep-Thi Vai International Port, which is expected to be the largest deep­water port in the south. The VND4.7 trillion (US$294 million) port project, funded by the Japan Bank for Interna­tional Cooperation (JBIC), is designed to have piers for container ships at the Cai Mep section of the Thi Vai River, and piers for cargo ships at Thi Vai area alone the river. The transport ministry has identified the project as apri­ority this year. The port complex's first phase-to replace ports alone the Saigon River in HCMC- should be finished by the end of 2009. In addition, the southeast­ern region needs a deep-water port for container ships or vessels up to 80,000DWT because all the ports in HCMCs inner ­city area can receive ships of 30,000DWT only. The second phase will start after 2010 and include piers with two for general cargo and four for container ships. The Cai Mep-Thi Vai section has become good land for port operators, with many projects having been licensed. SGT

 

 

301006- The Cai Mep-Thi Vai area in the southern coastal province of Ba Ria-Vung Tau is becoming increasingly sought after given its unique and advantageous geographical location that is able to accommodate modern, large-scale sea vessels and so the ports that are required to service them. Thus, the last couple of years have witnessed unprecedented interest in the area from foreign and local investors. Furthermore, the Prime Minister recently stressed the importance of the area to the country’s greater national development in a dispatch this week, in which he instructed the Ministry of Planning and Investment and other related ministries to cooperate with Singaporean agencies to jointly form a research group into the further development of the Thi Vai International General Port and Logistics Complex. The general port, which will be developed by a joint venture between Saigon Port and the Singapore Ports Authority is envisaged as being located downstream of the Thi Vai River close to the sea. The port will require an estimated US$165 million for the construction of the initial first phase (ending in 2010), but an additional US$133 million during the second phase (to end in 2017). The research is now deemed as urgent since it needs to be submitted to both countries’ governments as soon as possible. Meanwhile, an official from the transport ministry said several other local and foreign investors were now also eyeing up the area and preparing a number of port schemes including the Cai Mep-Thi Vai International Port Complex, which has attracted serious interest from the Japanese government via an ODA funding proposal. It is envisaged that the international port complex, which would be developed by the transport ministry and be scheduled for operational activities from end of this year through to the end of 2009, would need over VND4.7 trillion (US$294 million), some 85% of which would need to be found via ODA loans. The official continued by saying that the whole Cai Mep-Thi Vai port system area would be able to accommodate upto 26 projects divided into 4 groupings. He added the construction of several of the projects in the Group One area were already underway, with the New Port-Cai Mep and Ba Son Shipyard developments (by affiliates of the Ministry of Military), both having started earlier this year. Another two joint ventures between the State-owned Saigon Port and Denmark's Maersk A/S, and the US-based SSA (Stevedoring Services of America), have also now been licenced and both container ports (one upstream and one downstream from the river), are now being master-planned. Besides these huge general port facilities 5 other smaller specialized projects have recently been completed or are nearing completion including the 132-meter Ba Ria-Serece Port; the Interflour Port; the Phu My Power Plant port; the Liquefied Petroleum Gas (LPG) port; and the Holcim Cement Plant’s port. Other similar such specialized ports are also under construction including the Cam Pha cement grinding station port; the nitrogenous fertilizer plant port; the Phu My Steel Factory port; the Cai Mep petrol and oil station port; and Ba Ria-Serece Port (expansion area). The 32-kilometer Thi Vai River has a 25-kilometer section through Ba Ria-Vung Tau province which is 600-800 meters wide and 10-20 meters deep and which runs parallel to National Highway 51 making it ideal deepwater ports as it can cater to huge 50,000-80,000DWT ships. Given these logistical advantages, the zone is regarded as essential for the nation’s master plan that envisages a throughput volume of 16.6 million tons by 2010 and 45.9 million tons by 2020 from the wider region, the official added. Pham Anh Tuan, head of Project Department of the Port Coast Consultancy Company said that developing such deepwater ports in the locality would greatly contribute to economic growth of not only the Ba Ria-Vung Tau province but the whole southern focal economic region. Le Minh Chau, head of the Ba Ria-Vung Tau Industrial Zones Authority echoed this by adding that that the deepwater ports would help both help the industrial parks and province develop into regional hubs. However, although there is considerable interest in the Cai Mep-Thi Vai area and things look on course for the completion of the regional seaport development program (to 2010 and onwards to 2020), the most important thing now is to get the fundamental physical infrastructure in place so that foreign investment can then pour into the local and wider region. In this regard, the transport ministry in conjunction with the Vietnam Maritime Administration have announced plans for the establishment of a port management board to oversee investment into, and the development of infrastructure in the area. SGT

 

 

111006- A delegation from Korea’s Ministry of Maritime Affairs & Fisheries (MOMAF) has visited on a fact-finding mission to learn more about the potential of building a container terminal, port and logistics center in Tan Thanh District in the southern coastal province Ba Ria-Vung Tau. Eom company’s Mr Ki Doo, head of MOMAF’s ports & logistics department, said at a meeting with provincial authorities on Monday that the ministry was very interested in developing a port at the mouth of the Cai Mep river where it flows into the Thi Vai river by way of a joint-venture format, according to a provincial official. The Korean ministry said that Eom has been researching and drawing up plans for the Build-Operate port complex since May this year, which is envisaged as including a container terminal & port-logistics facilities on the Cai Mep river. The Korean government hopes that the Vietnamese authorities will help by providing the requisite conditions so that the Eon and its partners can proceed with the construction of this project.  The master plan envisages a capital investment of some US$345 million sourced from MOMAF, Eom and the Busan Port Authority. The project would become an integral part of the huge Cai Mep-Thi Vai port complex in Ba Ria-Vung Tau.  Furthermore, MOMAF officials held out the possibility of ODA funding from the Korean Government so as to assist the local authorities with the construction of the internal roads and other such infrastructure facilities, in order to help with the further development of the wider Cai Mep-Thi Vai port complex - if the Vietnamese Government gives the green light to the project - that are estimated to cost in the region of US$30 million. Ba Ria-Vung Tau province vice chairman, Ho Van Nien, welcomed MOMAF’s proposals whilst going on to emphasize the greater importance of the project to the province’s continuing socio-economic development. Therefore, he said that the province would do its utmost to create favorable investment conditions for the prospective investors. If successful, the Korean invested port would probably be the last such project licensed in the Cai Mep-Thi Vai area since there are several other similar such schemes awaiting approval or that have already been licensed to other local and foreign investors. In recent months, the Cai Mep International Container Port has attracted nearby foreign investments including the Saigon Port-Maersk A/S joint venture that has been approved with an investment of US$187 million and which will feature the construction of two wharves, and the Saigon Port-Port of Singapore Authority (PSA) joint venture just downstream from the Thi Vai International General Port at a cost of US$165 million - during the first phase to 2010 - but which will be further expanded with an additional investment of US$133 million during the second phase - ending 2017. Furthermore, last week the Ministry of Planning and Investment granted a US$160 million investment certificate to a Saigon Port-SSA (Stevedoring Services of America) joint venture to develop another container terminal just downstream from Cai Mep. Local players are also heavily involved in this ‘hot’ area since both the Saigon New Port and Ba Son Shipyard (members of the Ministry of Military Affairs), have recently announced plans for the relocation of ‘New Port-Cai Mep’ and ‘Ba Son Shipyard’ in the Thi Vai-Cai Mep region. Even more significantly, the VND4.7 trillion (nearly US$294 million) Cai Mep-Thi Vai International Port Complex (85% funded by Japanese ODA loans), is due to open later this year with further expansion phases through to 2009. Several other smaller specialized ‘niche’ sector ports are also due to be developed close by in the near future. One of the main reasons for this sudden, magnetic like attraction of foreign investors to the area, is because of recent Ministry of Transport research which indicates that the river basin can accommodate large vessels of upto 80,000 tons, and because of the dramatic and ever continuing increase in the volumes of exports from the key southern region. Currently locally based ports are able to handle about 14.5 million tons of cargo per year (through to 2010), but traffic is estimated to reach a staggering 41 million tons by 2020. SGT

 

 

SP-PSA INTERNATIONAL PORT (CAI MEP-THI VAI PORT COMPLEX)

 

 

250107-The provincial People's Committee has granted an invest­ment license to establish SP-PSA International Port Co., a joint venture of Saigon Port and Singapore's PSA Vietnam Pte. Ltd. The port will be at Cai Mep Thi Vai, in Tan Thanh District. The company wants to invest in logistics services, with capital of US$165 million in the first phase and US$133 million in the next phase. The joint venture will build four wharfs, whose loading capacity is about 1.5 million TEU a year. Its activities comprise developing and managing ports as well as supplying support services, especially at Thi Vai Port, and other logistics services. SGTW

 

 

SCHENKER GEMADEPT (SONG THAN IP)

 

 

201007: The Schenker-Gemadept Logis­tics Vietnam Co. last Friday broke ground for a 15,000­ square meter logistics hub in the southern province of Binh Duong's Song Than In­dustrial Park. The new facility, scheduled for completion in March 2008, will provide top quality warehouse space for the local mar­ket, according to the joint venture. The joint venture is the re­sult of a long-term coopera­tion between Germany's Schenker, one of the world's leading providers of inte­grated logistics services, and the HCMC-based General Forwarding and Agency Corporation (Gemadept) since 1991 when the later acted as an agent for the former. The joint venture is capitalized at some US$5.5 million with the local firm holding a 49% stake. The new logistics hub will significantly strengthen the capabilities and capacity of Schenker in Vietnam. This will add to the three Schenker offices and over 120 staff op­erating in the country since 1991. With annual sales of 13.2 billion euro, 55,000 employees and about 1,5000 offices around the world, Schenker is offering land operations, air and ocean freight as well as comprehensive logistics solutions and global supply chain management. Saigon Times

 

 

200606- Vietnam's largest shipping agency Gemadept is to form a logistics joint-venture with Germany's Schenker in a move to sharpen its competi­tiveness and boost its ware­housing and contract logis­tics business. "The two sides have already signed a memoran­dum of understanding for the partnership, and we are now clearing the last legal hur­dles. We hope the joint-ven­ture will be established over the summer," Nguyen Quoc Khanh, a senior executive of Gemadept in charge of the project, told Vietnam Invest­ment Review last week. Khanh said the joint-ven­ture would have a registered capital of $5 million, with Gemadept holding a 40-per cent stake and their German partner holding the balance. The joint-venture plans to concentrate on warehous­ing and contract logistics. Other related logistic activi­ties may be included as well. After being established the JV will invest in building a logistics centre on an area of 15,000 square metres in the Song Than Industrial Park in Binh Duong province. "The local government has approved the project, and preparations for project construction are now on the fast track. If things go smoothly, the centre could possibly be operational by the second half of next year," he said. Gemadept and Schenker have worked together in the logistic sector since 1994. The new joint-venture will be "a new development to enhance our well-established partnership over the past 12 years," said Jurgen Braun­bach, chief representative of Schenker Vietnam. "The joint-venture shall extend additional services to our existing customers and support our further growth as one of Vietnam's leading logistic providers. Together with Gemadept, we are in a strong position with Schenker's international net­work and Gemadept's proven track record in Vietnam to offer the best services in newly built facilities to our customers," he said. If formed, it will be Ger­madept's fourth joint-ven­ture as a foreign partner. Pre­viously, Germadept has teamed up with Hong Kong's OOCL to establish OOCL Vietnam, Belgium's MBN to form MBN-GMD and South Korea's Sinokor Merchant Marine to form Sinokor Vietnam. Gemadept has estab­lished three subsidiaries in Singapore, Malaysia and Cambodia, where Gemadept already has a large clientele, and seven branches in big cities throughout the coun­tries. The Ho Chi Minh City­based company says it will open more units in other countries. "These units will help develop Gemadept's market strategies and seek funds from foreign partners to implement our development projects," said Gemadept's CEO Pham Tien Tinh, adding that his company has tabled plans to set up a branch in Bangkok very soon.

 

 

 

SWIRE COLD STORAGE (SONG THAN IP)

 

 

251007-Swire Cold Storage Vietnam (SCS) yesterday officially fi­nalized its first international standard cold storage's fifth phase in Binh Duong Province's Song Than IP, enhancing the facility's stor­age to some 20,000 tons. The Australian-invested company has spent US$12 million to complete the phase, raising the total investment capital for the whole storage project to US$25.66 million, the company said at the opening function. The storage was first opened in Vietnam in Decem­ber 1998 with an investment of US$5 million. Since then, the investor has continu­ously expanded its facility, and "with this fifth phase, our site now offers 36,500 pallets positions or about 20,000 metric tons," said man­aging director Graham Sanders. The other three phases were developed in the years 2000, 2002 and 2004. Sanders also revealed that SCS had plans to build the second cold storage facility in Vietnam, attributing the in­vestment to increasing busi­ness opportunities here. "Vietnam is the first coun­try in Asia that has our facil­ity. With the growth of the seafood industry, Vietnam has become a significant part of our business in Asia," he said. At this time, bonded freezer warehouse is also provided by SCS in conjunction with the standard cold storage. The company's main clients are from the seafood industry. Besides the cold storage project, SCS also has investments in Cathay Pacific Airlines, Vietnam Air Catering Services, Crown Vinalimex Packaging, and Finlays Tea Trading. Saigon Times

 

 

 

INDOTRANS (HIEP PHUOC)

 

 

010705-Indo-Trans Logistics Vietnam has received a license to set up shop in Hiep Phuoc Industrial Park. The US$1.2-million joint venture, which involves Vietnam's logistics and transport company In Do Tran and Singapore's Indo-Trans Vietnam Logistics, will supply customs declaration and container freight services and lease out warehouses. SGTW

 

 

230605- Indo-Trans Logistics Vietnam got a li­cense to set up shop in Hiep Phuoc Industrial Park, becoming the first logistics company in an IP in the city. Hepza, the authority for the city's IPs and export process­ing zones, issued the estab­lishment license last week. The joint venture has leased 14 hectares in the IP for 40 years to supply customs declaration and container freight station services and lease out warehouses. Indo-Trans Logistics has US$1.2 million in registered capital with the Vietnamese logistics and transport com­pany In Do Tran holding 55'% and Singapore's Indo-Trans Vietnam Logistics Co. own­ing the rest. Earlier, Hepza licensed Sagawa Express, a Vietnam­ Japan joint venture, to pro­vide logistic services in HCMC's Linh Trung EPZ. SGT

 

 

VIET HOA IP

 

 

251106-Integrated cold storage services provider Haisan Resources Bhd has invested some $3.6 million to set up a temperature-con­trolled logistics facility in southern Vietnam. The group had purchased 90,000 sq.m in Viet Hoa Industrial Park near Ho Chi Minh City to build a multiple temperature ­controlled facility (MTCF) targeted to start operation by first quarter next year. This expansion is in line with Haisan's strategy to be a regional integrated cold chain logistics operator. Besides Vietnam, the group also has operations in Malaysia, China and the Philippines and is looking at expanding to the West Asian market in future. The new Vietnam facility will be equipped with Haisan's own warehouse management system and cutting-edge temperature-control systems that can handle a wide vari­ety of ambient-controlled requirements as well as chilled and frozen food products. VIR

 

 

KONOIKE VINA (VSIP 1)

 

 

240206-Konoike Vinatrans Logistics (Konoike Vina) yesterday opened what is described as the first bonded warehouse in the Viet­nam-Singaporelndustrial Park (VSIP) in the southern prov­ince of Binh Duong. Deputy general director of the company Pham Dong Hai said the 6,000-squaremeter facility, which is worth US$600,000, could store 4,200 tons of goods. The company also supplies all modem trans­port conveniences. He said this is an expansion project of the company after ten years of operations. Konoike Vina is a US$2.6­ million joint venture between Japan's Konoike and three local companies - Vinatrans, Vinalink and Vinafreight. The company provides lo­gistics services by handling, transporting and installing equipment such as heavy and oversize machines, plants and material. Konoike Vina also has a cold storage facility in Dis­trict 7, HCMC. "Foreign investment in Viet­nam is increasing, especially investment from Japan, so we decided to build the ware­house," Hai said. At present, the warehouse has 20 cus­tomers, among of them for­eign enterprises. Binh Duong is now home to about 1,000 foreign-invested projects and this is an oppor­tunity for the company to develop business, Hai added. SGT

 

 

DIETHELM (VSIP 1)

 

 

080305-Diethelm Logis­tics Centre, the country's largest logistics and warehousing centre, opened yesterday in Binh Duong Province, about 30km from HCM City. The new modern facility is owned by Diethelm Viet Nam, a member of the Swiss-based DKSH Group (Diethelm Keller Siberhegner) which specialises in marketing, warehousing, transpor­tation and after-sales services. The centre, covering 12,200sq.m at the Viet Nam ­Singapore Industrial Park in Thuan An District, is installed with the state-of-the-art equipment, capable of storing 8,000 pallets and covering of more than 20,000 retail outlets nationwide. "The new facility will signifi­cantly boost the coverage and ef­ficiency of the services we can offer our local business partners, such as Vimedimex and Lotus Trading," said Victor Hew, general director of Diethelm Viet Nam. "It will enable the company to become one of the largest lo­gistics service providers in Viet Nam, with its service network extended to 38 provinces," he said during the centre's opening ceremony. Diethelm Viet Nam has sig­nificantly developed since it started logistics services in the country in 1999. The company's annual rev­enue has increased by 45 times. It earned US$5 million in total revenue from logistics services in 2004. "Viet Nam is a strong pillar for the whole DKSH group and a fo­cal point for our long-term strat­egy," said Joerg Wolle, president and chief executive of DKSH group. Aside from logistics services, Diethelm Viet Nam has co-oper­ated with some local major seafood exporters to promote their market in European and Asian countries. "We have successfully mar­keted Agifish products to Swit­zerland, Germany and France," said Wolle. "And will also work with exporters of wooden products and pharmaceuticals in the future. "We believe that Viet Nam's anticipated membership of WTO will further enhance the prospect of the country in general and Diethelm Viet Nam in particular," he said. "We have planned to expand our main logistics centre in Binh Duong to become the country's largest in the future." The facility will be able to sat­isfy  he increased demand of local companies when Viet Nam be­comes a WTO member, he said. He said that when the third phase is completed, Diethelm will become Viet Nam's leading logistics and marketing services provider with coverage in excess of 30,000 outlets in more than 45 cities and provinces. At the opening of the new lo­gistics facility, the company also received the ISO 9001:2000 cer­tificate from the Societe' Generale de Survillance for its quality warehousing management services. Diethelm Viet Nam has other branches and warehouses in Ha Noi, HCM City, DA Nang and Can Tho in addition to the main logistics oentre in Binh Dtfang, with total investment of $6 million. VNN

 

 

MAPLETREE (VSIP 2)

 

 

150905- Singapore's leading real estate developer Mapletree Investment Pte Ltd, or Mapletree, plans to invest US$ 100 million to de­velop a logistics park within Vietnam-Singapore Industrial Park (VSIP) II in Binh Duong Province. VSIP Joint Venture Co. and Mapletree yesterday signed a letter ofconfirmation, which gave Mapletree the exclusive right to develop a 56 hectare logistics park in VSIP II. The land lease for the logis­tics park will be about 50 years and this area will comprise bonded warehouses and pos­sibly a free trade zone. Itwill have facilities custom­ized to the special require­ments ofcustomers, as well as those for customers who are looking for ready space for quick start-up. Mapletree has also been granted in principle by the provincial government for a three-year exclusive right to develop a logistics park in the 4,196 hectare Binh Duong in­tegrated township. "We are pleased to enter into a strategic partnership with the VSIP joint venture to develop VSIP II into a premier industrial park in Vietnam," said Mapletree chairman Edmund Cheng. "Today's signing ceremony marks an important expansion of Mapletree's footprint into one of the region's major manu­facturing and trading hubs. It also demonstrates our belief in the strong growth potential of Vietnam's economy and in particular, its manufacturing sector." The Binh Duong logistics park is an essential part of Mapletree's "follow the cli­ent" regional strategy. He added, "As a strategic real estate partner to our logistics customers, we will work and grow in tandem with them by providing them with an inte­grated suite of real estate solu­tions, including sourcing, ac­quiring and custom-building logistics facilities that will ac­commodate and support their expansion needs in the region." The development of the logistics park will be under­taken in phases in line with market demand. Work on the first phase is expected to commence in the first quarter of next year. Edmond Cheng said: "With the development of the logis­tics park at Binh Duong, both VSIP and Mapletree will be well positioned to serve the expected influx of investments into Vietnam once the coun­try gains accession to the World Trade Organization." Vice chairman of VSIP JV Nguyen Van Hung said Binh Duong Province had been leading the investment attrac­tion in the country in the past years. However, there is no logistics park there to serve the needs of investors. Mapletree has an asset base ofaround US$2.6 billion comprising office, logistics, industrial and retail or lifestyle properties. VSIP II the second indus­trial park to be developed by VSIP JV, is an expansion of the first VSIP.

 

 

Asia Refrigeration / Seaprodex

 

 

In early 2009, the Asia Refrigeration Industry Co Ltd (an affiliate of Seaprodex Refrigeration Industry Corp), started work on a nearly USD$17.16m plant covering 2.5 hectares in Binh Tan's Tan Tao IP.

 

 

North

 

 

VSIP BAC NINH

 

 

210807-A high-profile joint venture is hoping its out­standing success in the south can be replicat­ed in the north. Vietnam Singapore Industrial Park (VSIP), a joint venture between Singapore's Sembcorp Parks Holdings and Vietnam's Becamex company, is spreading north to Bac Ninh province and Haiphong city on the back of its two Binh Duong province industrial parks. Singaporean Sembcorp Parks Hold­ings official Mary Ann Chan said the company had already submitted an investment licence application for developing VSIP-Bac Ninh Industrial Park. "We expect to receive the licence soon, perhaps by the end of this month. The joint venture will start to develop the infrastructure in January 2008," she said. The VSIP-Bac Ninh Industrial Park, which will be located on the border of Hanoi's Gia Lam district and Bac Ninh province some 18 kilometres from downtown Hanoi, will cover 500 hectares. The company will invest $103.7 million over five years which will focus on capital intensive industries such as the electronic and pharmaceutical sectors. Furthermore, a 200ha township will be developed near the industrial park, including commercial, residential developments and services to support the province's residents. The Bac Ninh industrial park development plan received prime ministerial approval last May. VSIP co-chairman Low Sin Leng said: "We have served more than 300 industrial customers over the years and many have indi­cated an interest in northern Vietnam to take advantage of its proximity to China. We are, therefore, confident that VSIP-Bac Ninh will replicate our success in Binh Duong and con­tribute to the economic and community devel­opment of Bac Ninh." Last week, 10 companies from six coun­tries and territories signed letters of intent committing $183.5 million to set up operations in VSIP-Bac Ninh. The investments will occupy 96.5ha, or 20 per cent of the park's marketable area. The companies include Vietnamese Duc Viet Joint Stock Company, Japan's Fujikin Incorporated, Sin­gaporean logistics provider Mapletree Investments Pte Ltd and US-based Unigen Corpora­tion which manufactures printed circuit boards, quartz components and precision mechanical parts. VSIP last week also signed a memo­randum of understanding with Haiphong's People's Committee to explore the feasibility of developing a 1,200ha township and industrial park. However, VSIP did not reveal any infor­mation about the project. Chan said: "We are unable to provide details such as investment capital. We have only just signed a memorandum of under­standing with the people's committee. VSIP will first conduct a feasibility study such as environmental impact analysis and master­planning. Details such as target customers should be finalised after the feasibility study is completed. The project is located north of the Cam River or Bac Som Cam in Thuy Nguyen district." VIR

 

 

HANOI

 

 

221105-Hanoi is already being pushed to provide enough land for potential manufacturers, and experts are warning that the city authorities' plan to build another 2 centred industrial zones and 10 small- and medium-sized zones over the next five years will face barriers in the planning and zoning of the capital : - Hanoi now has 6 centred industrial zones and another 18 small and medium-sized industrial zones. But with thousands of enterprises both foreign and domestic in the city, Hanoi still lacks enough area to locate its manufactuers. The Hanoi Industrial and Export Processing Zone Authority (HIEPZA) expects to build another two centred industrial zones and 10 small and medium zones in the next 5 years. However, experts have warned that the current plan to develop these zones would face barriers in the planning and zoning of Hanoi. Foreign investors have largely been attracted to 4 of the 6 centred zones. Three centred zones lead the top position with a high occupancy rate : Sai Dong B with 100% of the 1st phase; Thanh Long 100% of the 1st phase and 85% of the 2nd phase; and Noi Bai with 100% of the 1st phase. Thang Long is imple­menting the third phase while Hanoi - Dai Tu has finished its infrastructure system and will begin oper­ating soon. Sal Done A is still delayed due to financial difficulties by the foreign part­ner, while South Thang Long is coming along slow­ly. During 10 years of development, 95 investment licences were given (89 of them form foreign invested projects), with a total registered capital of USD$1.2 billion. Hanoi 18 and medium sized industrial zones occupy a total land area of 760.6 hectares, with an infrastructure investment capital of VND512 billion. Nine of them have already completed their infrastruc­ture systems : - Vinh Tuy, Phu Thi, Tu Lim, Dong Anh, Cau Giay, Hai Ba Trung, Ngoc Hoi, Hapro and Phu Thi 2. The rest are still in the building process. According to an assess­ment by the Hanoi Authority the building of small­ and mediurn-sized industrial zones in 2004 have gained achievement, partly meeting the demand of leasing land for small and medium man­utacturers and helping to remove manufacturing from the inner city. In the last decade 176 enterprises were given licences in these zones with a total registered capi­tal of up to VND3.3 trillion. According to Nguyen Van Viet, deputy director of HIEPZA, centred industrial zones have gained a total turnover of 52.9 billion while small and medium zones gained VND2.3 tril­lion. The industrial zones in Hanoi have gained an export turnover of $1.9 billion and import turnover of $2,07 billion. Nearly 28,000 labourers are working in these zones, including 354 foreign work­ers. Warnings from planning experts : -  Although the benefits and achievements of the city's industrial zones are undeniable, planning experts have warned that the existing zones will be not suitable in the near future. Tran Ngoc Hung, deputy director of the Industrial Zone Management Depart­ment under the Ministry of Planning and Investment, said the city should re-plan the location of all industrial zones to avoid the impact of these zones to the city centre. "The first thing we must do right now is to make a plan to develop industrial zones in the city, and the plan must be closely linked to the masterplan of the whole city," Hung said. Le Manh Cuong, direc­tor of the Planning and Architect division of the Hanoi Planning and Archi­tect Department, said the city's existing masterplan does not contain the new industrial zones. In the last 10 years, all industrial zones have been built in the gates or on the outskirts of the city. Howev­er, with Hanoi's current dra­matic development, the city has spread out and these zones have come closer to the inner city. "We expect many exist­ing zones will become the centre of the city soon and we will have to remove them by then," Cuong said. Cuong cited the Cao Xa La industrial zone as an example. It was set up in the 1980s and is now on the list for removal to outside the city. Moreover, Hanoi's neighboring provinces - Ha Tay, Hung Yen and Bac Ninh - are also building their industrial zones close to Hanoi to make use of the capital city's transport and logistics advantages. "These zones are putting a very strong pressure on the city's transport and environ­ment," Cuong said. "It's high time for us to find a sustainable way to develop industrial zones under a masterplan. The future will be very gloomy if we do not adjust the plan right now. We will lose more than we gain," he added. Cuong said if policy makers do not find a solu­tion soon, in the coming years there will be a barrier of industrial zones around Hanoi. "It will be a disaster and it is high time for us to stop and make more plans," he said. Many experts suggest that in the future, industries investing in industrial zones should focus on gray-matter fields instead of manufac­turing fields such as shoes, garments or foodstuffs, the way many industries are doing now. And future plans According to the Hanoi Planning and Architecture Department, the govern­ment has given Hanoi the green light to increase its area to two and a half times its current size. The city will develop the north based on National Highway 18 link­ing Lao Cai and Noi Bai. In the next five years HEPZA expects to attract another 80 licences to its existing centred industrial zones. These projects should bring in a total of about $600 million. The small and medium industrial zones are expect­ed to attract another 360 licenses, with a total invest­ment capital of VND5 tril­lion. VIR

 

 

THANG LONG IP (HANOI)

 

 

230505- Dragon Logistics has finished expanding its logistics centre and opened a customs clear­ance plot in Thang Long industrial park last week, finishing the second phase of its project to service increasing trade from the park. The new area was built on an area of 5,000 square metres (sqm), raising the total area of the logistics centre to 10,000 sqm, with modern equipment like a container forklift, speed roller and jack. Dragon Logistics general director Eisuke Nakanishi said the centre would increase the company's logistics capability in terms of specialised services, transportation, loading goods, customs clearance and electronic decla­rations. The centre transports around 1,000 con­tainers with nearly 20,000 tonnes of goods through roads and 30,000 tonnes of goods via airlines. Last year, it reached $10 million in turnover and plans to open transport services on routes to China and Thailand in the future. The centre's shareholders comprise Sumit­omo Corporation with 27 per cent, Suzuyo & Company with 25 per cent, Vietnam Forward­ing Joint Stock Company with 25 per cent and Hanoi Electronics Corporation with 23 per cent. Its current customers include Matsushita Home Appliances Vietnam, Canon Vietnam, Toto Vietnam, Sumitomo Bakelite Vietnam, Zamil Steel, Sanyo Home Appliances, Pentax Vietnam, Yamaha Motor Vietnam, Suzuki, Kinden-ABB and VFG. VIR

 

 

111102-A $9.3 million customs ­bonded warehouse - the first of its kind in a northern industrial park - last week opened to handle increasing trade from the Thang Long Industrial Park. "The new bonded-ware­house will help IP enterpris­es prevent time-consuming and absurd customs proce­dures," said Dragon Logistics deputy director Nguyen Van Toan. The warehouse - cover­ing 25,000 square metres - is developed by Japan­ backed Dragon Logistics, Suzuyo, Vietnam's Vinafco and Hanel. Toan said the project's second stage would see the warehouse's area doubled to meet customs clearance requirements for the enter­prises locating within Thang Long Industrial Park (IP) and surrounding areas. Customs-bonded ware­houses - first authorised in 1992 - allow goods from foreign countries to be kept without any licences or pay­ing import duties. There are 18 foreign­ invested projects in the 121-ha Thang Long IP, including Japan's $76.7­million Canon printing firm and the $23-million Toto sanitary ware firm. The park's land occupancy is around 60 per cent of the available area. VIR.

 

 

 

Yusen Logistics Hub (Hai Duong)

 

 

In late 2008, Japan’s lo­gistics firm Yusen Viet Nam opened its international entrepot. The USD$2.3 million entrepot is located in Ha Noi's neighbouring province of Hai Duong which pro­vides easier access to the Hai Phong seaport and Noi Bai airport. The operation of the interna­tional entrepot will not only meet increasing demands for logistics ser­vices in Viet Nam, but also function as a logistics hub in the region, linking with China, Thailand, Cambodia and Laos.

 

 

CHINA

 

 

150805-South China's Guangxi Zhuang Autonomous Region plans to build an international logistics park at the border of China and Viet Nam to boost trade with ASEAN countries, said a source from a logistics planning conference in Guangxi last Friday. With an investment of 120 million yuan (about US$14.8 million), the park, located in the city of Pingxiang, will cover an area of 120ha, and is ex­pected to be completed by the end of 2010. Lei Duorong, mayor of Pinxiang City, said it will be a modern park integrating logistics, information and fund flows to promote the economic cooperation be­tween China and the ASEAN countries. The city government will provide a lower-inter­est loan to the infrastruc­ture builders together with some favourable estate policies to boost the con­structiotl of the logistics park," said the mayor. The third largest port in Guangxi and the autono­mous region's largest city bordering Viet Nam, Pinxiang is known as the "South Gate of China." According to the city's statistical bureau, Pingxiang had more than 4 billion yuan (about $493 million) in trade with Viet Nam last year, making up 10 per cent of the Sino-Vietnamese to­tal. - XINHUA-VNN

 

Centre

 

 

 

 

EAST WEST ECONOMIC CORRIDOR (EWEC)

 

 

220907- The Asia Development Bank, one of the key development partners of the EWEC which opened on December 12, 2006. It takes a mere seven hours to travel by car from Thailand to Vietnam on the 500 kilometre route connecting Mukdahan and Danang. The EWEC, a major project in the Greater Mekong Sub-region (GMS), was discussed and ratified at the 8th Ministerial Meeting of the Greater Mekong held in Manila, the Philippines, in October 1998. The 1,450km route stretches across 13 provinces of the four GMS countries; Vietnam, Thailand, Laos and Myanmar. The route connects Danang, Thua Thien-Hue and Quang Tri in Vietnam; Savanakhet in Laos; Mae Sot, Tak, Phitsalulok, Khon Kaen, Kalasin, Kuchinarai and Muk­dahan in Thailand and Mawlamyine and Myawaddy in Myanmar. It is still in the beginning stages and host countries and more importantly private sector, are just beginning to test the EWEC as an alternative to their current logistics arrangements. As I mentioned earlier, there are indications that host countries are already beginning to benefit from the route. However, it is quite unlikely that host countries and the private sector have been able to realise its maximum poten­tial. There are certain impor­tant prerequisites before full benefits can possibly be seen.

 

 

CHAN MAY-LANG CO ECONOMIC ZONE

 

 

180107-Local authorities have reite­trated their ambitions to see the Chan May-Lang Co eco­nomic zone in the central province of Thua Thien-Hue transformed into a multi­ sector zone to fully tap into its seaport and tourism potential. "As an economic zone, Chan May will include an economic and commercial development zone, the Chan May deep-sea port, Chan May urban development, and the Lang Co interna­tional tourism, recreation and duty free area," said Ho Sy Nguyen, acting deputy general director of the Chan May-Lang Co Economic Zone management board. The province has laid plans to link with Chan May with Chu Lai, Dung Quat and Nhon Hoi to form a chain of economic zones in the central region. In an attempt to lure domestic and foreign investors, the EZ's manage­ment board has offered investors various incentives and tax breaks. All projects will enjoy a corporate income tax rate of 10 per cent within the first 15 years of operation, compared to the normal 28 per cent. They will be exempt from the tax in the first four years after generating taxable income and have 50 per cent reduc­tion in the next nine years. "With both industrial and tourism potential, this year Chan May-Lang Co will call for investors in logistics, industry, trans­port, and services," Nguyen said. "Now that the Nghi 2 Bridge is open, links with Thailand through Laos should draw more Japanese investors," Nguyen added. He also said that in Janu­ary, 20 Japanese logistics and industrial investors had expressed interest in the economic zone. The EZ is home to the Nam Alcan Co. Ltd with a net export turnover of $150 million in 2006, accounting for more than 70% of the province's total export rev­enue. VIR

 

 

200606-Thua Thien Hue province has announced the establishment of Chan May-Lang Co eco­nomic zone with licences granted to a number of produc­tion and tourism investors. The giant zone was set up on 27,100 hectares in Phu Loc district, a short distance from Chan May deep port that currently handles ships up to 30,000 tonnes and is 30 min­utes from Danang international airport and 100 kilometres from Phu Bai airport. "The location is convenient for travel and product shipment," said Nguyen Huu Tho, deputy director of the zone's management board. The economic zone will boast a large free tax area, industrial park, a port, logistics complex, tourism and service areas and residential develop­ments. The government said the zone will be closely connected with Chu Lai in Quang Nam, Dung Quat in Quang Ngai and Nhon Hoi in Binh Dinh provinces to boost economic development in central Viet­nam. Thua Thien Hue is offering a raft of incentives, including tax breaks and concessions, to lure investors to set up produc­tion bases and build residential and tourist areas in the zone. Investors will enjoy a cor­porate income tax rate of 10 per cent within the first 15 years of operation. They will not be subject to corporate income tax in the first four years and have 50 per cent reduction in the next nine years. Vietnamese and foreign individuals will get 50 per cent off their high income tax rates. These incentives are paying off, with Alcan the world's second largest aluminum pro­ducer, announcing a produc­tion base in the zone. The company will invest $20 million to set up produc­tion facilities on 65ha in the zone. Foreign experts and 1,000 local workers have built a pier and a wide road leading to the sea port, preparing for the shipment of products to Aus­tralia. Alcan would spearhead the zone's development, Tho said. The company imported materi­al volume worth $65m in the first five months to assemble giant aluminum exploitation facilities for exports. Tho said more than 40 busi­nesses have applied to invest in the zone with registered invest­ment capital of $500m. The picturesque bay of Lang Co has drawn a dozen of investors from Japan, Hong Kong, Singapore and Germany seeking opportunities to build resorts and a large golf course. The bay has been listed as one of four main national tourism complexes in the country. Besides Chan May, a num­ber of economic zones have been set up across the country, including Vung Ang in Ha Tinh, Nghi Son in Thanh Hoa and Van Don in Quang Ninh provinces. These zones have more than industrial parks to include ports, residential areas, free tax areas and tourism complexes where investors are often offered more preferential treat­ment than in other regions. Haiphong is applying for an economic zone but the govern­ment has asked the Ministry of Planning and Investment to submit a development master plan for these mega projects before it can approve the northern port city's proposal. VIR

 

 

VAN PHONG BAY INTERNATIONAL TRANS-SHIPMENT PORT

 

 

141006- Plans for a new con­tainer port in Van Phong Bay, north of Nha Trang in the cen­tral coast province of Khanh Hoa, have been approved by the Ministry of Transport. The Van Phong International Trans-Shipment Port would be built in three phases on a total area of 750ha in Dam M6n ba­sin. An initial 50ha area with two wharves capable of receiving ships of 6,000-9,000 twenty-foot equivalent units (TEUs) would be constructed, followed by a 120ha second phase in 2010-15 and a final phase of 400ha to be completed by 2020. According to the approved plans, the port would have wharfage of 11,880-12,590m, with 37 large and 6 small piers and a capacity to receive 14.5­17 million TEUs per year. The second phase during 2010-15, would see the port ex­pand to the eastern edge of Co Co basis and the northern edge of Hon Ong basin with a total area of 118-125ha and a total length of 1,680-2,260m. The goods capacity would be 1-2 million TEUs annually. In the final phase, the port would extend along the north­ern edge of Dam M6n basin with a total length of wharfage of 4,450-5,710m. The port would have the ability to re­ceive ships with a capacity of 12,000 TEUs. Port infrastructure would include railway systems, roadways and an airfield as well as water, electrical and supply data and communications systems built to fully and conveniently interact with domestic and in­ternational logistics networks. The State would create favourable conditions for do­mestic and foreign enterprises to invest in the construction of the Van Phong International Trans-Shipment Port in accor­dance with the Ministry of Transport plan. The site of the Van Phong port was one of the most suit­able deepwater bays in South­east Asia for port development, the ministry said.

 

 

280406- Prime Min­ister Phan Van Khai has al­lowed the establishment of an economic zone in Van Phong in the central province of Khanh Hoa. A decision signed on Tues­day by the Government leader specifies the zone covering 150,000 hectares of land and water surface in Van Phong will comprise two main sections, one of them customs-free. The customs-free section will be home to an international container port and a logistics facility, and commercial and financial centers. Meanwhile, ports for oil transshipment, and special and general purposes, indus­trial parks, resorts, residential and administration areas will be developed in the other sec­tion. Van Phong, 70 km north of Nha Trang City, will be devel­oped into a multi-functional economic zone but the prov­ince should give priority to developing an international container port, according to the decision. Since Van Phong is close to international sea lanes, such as Europe-North Asia, Aus­tralia-South East Asia and North Asia, economists be­lieve it can become an interna­tional transshipment point as the 45,000-hectare bay of the same name has an average depth of 22-27 meters and a 6­km wide navigational passage. Shipments from southern Chinese provinces and ASEAN countries can transit there if shippers want to reduce ship­ping time and expenses. Investors committed to Van Phong will be offered a four ­year corporate income tax ex­emption from the first year of earning taxable income, and a 50% tax reduction in the fol­lowing nine years. In the first 15 years of operations, they will be eligible for a 10% in­come tax. Hi-tech projects will be en­couraged with an income tax of 10% during their life span. High income earners, Viet­namese and foreign alike, will get a 50% personal income tax reduction. The transport ministry has forecast the volume of con­tainerized goods to be trans­shipped in the economic zone will total about20 million tons. Transport experts say that from now to 2020, the zone will need a total investment o€ US$3.6 billion to build infra­structure facilities, including a railway, an electricity sys­tem and a wharf which will be developed in 2007. Van Phong is part of a broader plan to develop eco­nomic zones in the central re­gion, including Chu Lai in Quang Nam, Dung Quat in Quang Ngai and Nhon Hoi in Quy Nhon.

 

 

DUNG QUAT ECONOMIC ZONE

 

011105-The Dung Quat Economic Zone's management board has licensed Da Nang Multi ­Transportation Corporation to build a 6ha depot and warehouse to support logistics operations. With a total capital of VND90 billion (US$5.6 million), the new warehouse is expected to be put into use by next August. The zone's authority has so far granted licences to 94 projects, with combined registered capital of $4.5 billion.

 

Last Updated ( Tuesday, 24 March 2009 )
 
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