Making Ba Ria-Vung Tau “a port city in the future”

(VLR) (Vietnam Logistics Review) Ba Ria - Vung Tau (BR-VT) Ports – in the roles of Vietnam’s Southern international gateway and gateway to the East Sea of the Southeastern and with the advantage of locating on international maritime routes - have enough conditions to develop sea ports, port services and logistics sector and to become a regional transshipment port. It is one of the few provinces that have enough conditions for strong development of the logistics sector.

(Vietnam Logistics Review) Ba Ria - Vung Tau (BR-VT) Ports – in the roles of Vietnam’s Southern international gateway and gateway to the East Sea of the Southeastern and with the advantage of locating on international maritime routes - have enough conditions to develop sea ports, port services and logistics sector and to become a regional transshipment port. It is one of the few provinces that have enough conditions for strong development of the logistics sector.

In term of infrastructures, BR-VT has enough premises: networks of roads, waterways and railroad (which is being gradually planned to connect with the existing transport networks as Bien Hoa - Long Thanh - Dau Giay Expressway, inter-port road… Bien Hoa - Vung Tau railroad, together with Long Thanh Airport and Asia Highway/ the Southern Economic Corridor are things for connecting strength among BR-VT and other regions. Besides, BR-VT has had 15 industrial parks with over 294 valid investment projects with the total register capital of over USD 14,694bn. Total land-leased area is over 1,969ha, fill-in rate of 34.45% of the area of the industrial parks and 70.63% of the area of industrial parks with completed infrastructures. In addition, a system of cities has been developed, together with existing cities and regions making a synchronous economic corridor of industry- seaports.

It is obviously an advantage that a few provinces have. In order to develop the port system equally to its existing potentials, on August 2nd, 2017 BR-VT People’s Committee issued the Decision no.2143/QĐ-UBND on an action plan to improve competition abilities and develop logistics service in the provincial area, focusing on the following issues:

Developing logistics services into a service sector bringing high values, and connecting logistics services to productions, import-export and trade for the country and BR-VT, for better transport and IT infrastructures.

To make BR-VT a hub of logistics service of the Southeastern, the provincial People’s Committee has set a number of targets and solutions, and then assigned functional organizations to implement:

Deploying policies and laws on logistics services:

Studying and deploying legal documents on logistics service development in the area in accordance to regulation from the Central, and in accordance to reality and existing international integration conditions. Studying and making good use of policies and laws on logistics service development for legal basis of logistics activities.

Investing in logistics infrastructure:

Improving logistics infrastructure structures of ports and connecting networks to facilitate import-export goods and to cut cost. Attracting investments and bringing logistics centers, ICDs into operation to form supply chains and stabilize cargo sources for higher logistics performance index (LPI).

Building logistics service centers of large scale serving Cai Mep Ports and Sao Mai - Ben Dinh Preservation, developing Cai Mep Ha Logistics Center for efficiency and better attraction of import - export goods, of transshipment cargo among BR-VT, Southern provinces, provinces in the Mekong Delta, and other provinces of Cambodia and Thailand to make VR-VT a regional hub and logistics center.

Improving enterprises’ abilities and service qualities:

Encouraging and guiding enterprises in provincial key sectors as export textile and garment, aqua-products, manufacturing industry, and heavy industry… to apply advanced supply chain management models to ensure cargo source for the ports. Gradually encourage other sectors as agricultural production, industry, and importexport to improve their competition abilities thanks to cutting transport cost to approach export markets.

Developing logistics service market:

Promoting trading of logistics services; attracting cargo sources from Laos, Cambodia, and Thailand to Vietnam and vice versa; improving exploitation efficiency and expanding cargo sources…

Encouraging forms of JV, cooperation among enterprises in the province on the bases of making good use of enterprises’ advantages (facilities, equipment and communication system) to develop logistics services and expand their operation range.

Improving awareness and quality of human resource:

Having trainings for human resource of the logistics sector to meet requirements from the local area; having incentive policies for enterprises; together with training organizations to push up training with variety of forms.

Besides, other tasks should also be focused: investing in equipment of testing, measurements and inspections serving logistics activities, building a system of statistics and statistics data collecting on logistics; carrying out effectively projects, plans and other related programs…

Particular targets of developing logistics services to 2025

- Contributing 4.4% of GRDP to 2025, having average growth of logistics service in the term of 2016 - 2020 of 6.65%, and 8% in the term of 2020- 2025. Improving values for logistics service, having outsourcing rate of around 50% at 2020.

- Having the total cargo amount of 350m tons in the term of 2016-2020, 70m tons pa in average through BR-VT port system. Reaching 100 m tons pa in the term of 2020-2025.

- Attracting investments in developing logistics service infrastructure in the provincial area of Tan Thanh Dist., and Vung Tau City to improve connection among BR-VT to other provinces in the Southern Key Economic Zone, in the Mekong Delta and to other regional countries.

- Encouraging new logistics service enterprises in the provincial area, supporting logistics service enterprises to ensure their competition abilities in the local markets, applying new technology in developing logistics services, having training for professional human resources, facilitating trade, and restructuring enterprises’ production restructuring.

In accordance to the roadmap, BR-VT will develop a healthy logistics service market, giving equal opportunities for enterprises belonging to various economic sectors, encouraging capital attractions from local and abroad in accordance to Vietnam law and other international agreements whose Vietnam is a member of.

With determinations from the political system, enterprises and investors, it is expected BR-VT will soon be “a seaport city in the near future”.

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