Ba Ria - Vung Tau: The logistics hub of the nation

Development Breakthroughs

On December 16, 2023, the Prime Minister signed Decision No. 1629/QD-TTg approving the master plan for Ba Ria – Vung Tau province for the period 2021-2030, with a vision to 2050. According to this Decision, one of the key development breakthroughs for BRVT is to "Develop and modernize the Thi Vai - Cai Mep International Gateway Port into a large regional and international transshipment port; establish a national logistics center and a free trade zone associated with the seaport in the Cai Mep Ha area, attracting strategic investors and designing a complete and synchronized ecosystem, applying top international standards."

With support from the Central Government, BRVT has embarked on implementing extensive projects. These include the construction of a free trade zone associated with the seaport in the Cai Mep Ha area, the 1,700-hectare Cai Mep Ha Logistics Center in Phu My town, and the establishment of the Cai Mep - Thi Vai (CMTV) area Centralized Specialized Inspection Center.

Nearly a year ago, on October 29, 2023, Vietnam's first LNG gas depot and port, invested by the Gas Corporation with a total capital of VND 6,500 billion, officially commenced operations, providing clean gas for production in the Southern region. Also in October 2023, Phu My Inland Port—the province’s first inland port, covering 38 hectares and the most modern in Vietnam, located in the CMTV area, and invested by Thanh Bình Phu My Joint Stock Company with nearly VND 3,000 billion in total capital—officially began operations.

Previously, BRVT province adjusted the medium-term public investment plan for the 2021-2025 period, adding more than VND 10,000 billion to invest in 10 critical transport projects that connect the region and the province internally. This decision "paved the way" ahead of Resolution 24-NQ/TW dated October 7, 2022, of the Politburo.

Ongoing and new projects are being vigorously implemented across the province. These include major works such as the Bien Hoa - Vung Tau Expressway segment through the province, valued at nearly VND 5,000 billion (started in June 2023), Road 991B connecting National Highway 51 with the Cai Mep downstream port with a total investment of nearly VND 3,900 billion, Phuoc An Bridge connecting BRVT with Dong Nai province with a total investment of nearly VND 4,900 billion, Coastal Road 994 with a total investment of more than VND 6,500 billion, etc. The Bien Hoa - Vung Tau Expressway will eliminate the sole dependence on National Highway 51, reducing the travel time from Ho Chi Minh City to BRVT to just about 70 minutes instead of the current 150 minutes.

The CMTV seaport cluster has already welcomed the world's largest ships, capable of carrying up to 24,000 TEUs, and is equipped with the world's most advanced technologies. However, it remains small and fragmented, lacking the connection between ports, and still does not have large ports that are regionally and internationally significant.

Thanks to the robust growth of the CMTV seaport cluster, in October 2023, MSC (Mediterranean Shipping Company), the world's largest container shipping company, signed a cooperation agreement with Thanh Binh Phu My Joint Stock Company to operate the Phu My Inland Port. MSC is now working with various partners in the region, including logistics service providers, seaports, barge services, and ICDs to connect and serve customers, meeting the growing demands of this market, according to Benoit de Quillacq.

The BRVT province master plan for the period 2021-2030, with a vision to 2050, includes the task of rapidly completing infrastructure, attracting investment into 13 operating industrial parks with a total planned land area of over 7,242 hectares; investing in infrastructure for 4 industrial parks already planned with a total area of 1,810 hectares; and adding 7 new industrial-urban-service zones with a total area of 6,850 hectares, of which 4,795 hectares are for industrial use. By 2030, the province will have 24 industrial and industrial-urban-service zones with a total planned land area of more than 16,052 hectares, including over 13,847 hectares of industrial land.

Focusing on Policy Improvement

According to BRVT leaders, the province is currently focusing on developing urban complexes, services, logistics centers, and inland ports that provide transportation services, warehousing connected with the CMTV seaport system, and links to Long Thành International Airport, including the Cai Mep Ha Logistics Center, the Song Xoai General Service Trade Zone, Phu My Logistics Zone No. 1 at the intersection of Road 991 and the Ho Chi Minh City Ring Road 4, Phu My Logistics Zone No. 2 at the intersection of the Bien Hoa - Vung Tau Expressway and Ho Chi Minh City Ring Road 4, the Bình Ba Logistics Center, inland port systems, and several other medium and small-scale logistics centers in Phu My town and Châu Đức district.

In Official Document No. 3/TB-VPCP dated January 6, 2022, announcing the conclusions of Prime Minister Pham Minh Chinh at a meeting with the BRVT Provincial Party Committee, the Prime Minister agreed with BRVT’s proposal for a pilot open-port mechanism at the Cai Mep container port cluster. The Prime Minister assigned the Ministry of Finance to lead, in coordination with the Ministry of Transport, the Ministry of Planning and Investment, the BRVT Provincial People's Committee, and relevant agencies, to research and develop pilot mechanisms and policies for an "open port" at the Cai Mep container port cluster.

Recently, the General Department of Customs has researched and drafted a Decision on piloting customs management and supervision for export-import, transit, and transshipment goods between ports within the same port cluster (open port). Accordingly, this Decision will specifically define the scope and principles of arranging the open port area; the goods passing through the open port area; the transportation of goods from the wharf to the open port area and vice versa; handling goods in the open port area; and customs procedures for goods passing through the open port area.

Previously, Vietnam Maritime Corporation (VIMC) and the BRVT Provincial People's Committee also proposed to the competent authorities to consider applying the open port mechanism for the port area at CMTV. According to VIMC leaders, the demand for goods connectivity between ships docking at different wharves in the Cai Mep port area is very high.

To ensure the supply chain is not disrupted right at the seaport, there needs to be a mechanism for connecting, exploiting, and transferring goods between the wharves in the CMTV area (open port mechanism) to optimize the operating capacity and maximize the use of each other’s berths, addressing the current limitations regarding berth availability, and reducing logistics costs for export-import goods through this area.

Open port operations are based on an IT system connected to the existing ports and customs data to ensure precise control of goods within the open port. Goods transported within the open port do not require transfer declarations or sealed locks. The open port operator provides specialized transport means running internally within the open port, designed with unique identification, making it convenient for state management agencies to inspect and supervise goods transferred within the open port. The responsibilities of the open port operator are similar to those of a port owner, ensuring that goods remain in their original containers and seals from the receiving port to the destination port within the open port.

The open port mechanism does not change the method of managing goods at each wharf or each customs sub-department. Customs sub-departments within the open port area only add management procedures for the transfer of goods within the open port through the IT system and the specialized transport means of the open port operator.

In the Decision, the Prime Minister assigned relevant ministries and agencies within their functions and duties to coordinate with the BRVT Provincial People's Committee in researching, developing, and promulgating or submitting to the competent authorities a number of mechanisms, policies, and solutions to mobilize and allocate resources to effectively implement the Master Plan. In addition to attracting investment and diversifying investment resources, policy mechanisms play a crucial role.