Advantages of developing logistics services
Ha Tinh is a province with a convenient transportation system located on the import- export lifeline of the Northern Central with the markets of Laos and Northeast Thailand. Thanks to its favorable geographical location, the province has fully converged its potential to become an economic trade gateway, turning logistics into a pillar of economic development of the province and through the East-West economic corridor connecting the province to international shipping routes.
Ha Tinh’s transport infrastructure system has been well invested and developed. Ha Tinh City is 50km from Vinh Airport, which takes less than an hour ride; 14km from Dong Hoi Airport with a 2-hour ride; North- South Railroad going through Ha Tinh is about 71km with 8 stations; National Road 1 and HCM Road are North-South routes going through the province.
In addition, Ha Tinh also has 8 national roads connecting areas in the province, to other surrounding regions and to foreign countries. In the coming time, two other expressways- North- South Expressway in the East with the length of 108km, being invested in the period of 2021- 2025 and Vung Ang Expressway from Vung Ang EZ to Cha Lo Border Gate (Quang Binh) connecting to Laos and other countries in the region, to be invested after 2030.
Currently, Ha Tinh has 2 economic zones, 3 industrial parks and 23 industrial clusters. Notably, Vung Ang EZ with an area of 22,700 hectares is one of the country’s eight key economic zones. With many strengths such as the largest iron and steel refining center in Vietnam, the large energy center, it also has many advantages of a deep-water seaport system to develop logistics services.
Vung Ang EZ has been considered an attractive destination that attracts dozens of both local and foreign investors- a large wild sand area has become an important economic zone of the Northern Central and the country.
Currently, Vung Ang EZ contributes 56% of the total budget revenue in the province, 95% of import-export revenue, 90% of industrial production value and 87% of total import-export turnover. This is considered a “good land” for investors, so far Vung Ang EZ has attracted 153 domestic and foreign projects, including 55 foreign investment projects; 1 investment project in the form of BOT with the registered capital of over USD 15,769 million; 97 domestic investment projects with registered capital of over VND 60,300 billion. Vung Ang EZ has created jobs and stable incomes for over 18,000 Vietnamese and foreign workers as well.
In addition, in Vung Ang EZ, there is a port cluster of Vung Ang - Son Duong with the advantage of great natural depth (from -11m to -22m), low sedimentation level every year, so it can receive ships with a tonnage of up to 350,000 DWT. At the same time, Vung Ang port area is the gathering point, the shortest gateway to the East Sea, helping to connect transit goods of the two markets of Laos and Northeast Thailand to trade with countries around the world and vice versa.
With the distance of 190km from Vung Ang, Cau Treo Inter National Border Gate to Namphao International Border Gate(Laos) and the distance for 170km from Vung Ang to Cha Lo International Border Gate (Quang Binh), Cau Treo Border Gate EZ is one of Vietnam’s international border gates with a convenient location for exchanges and cooperation development among Vietnam, Laos and Thailand.
Logistics is one of the four key sectors
Nguyen Hong Linh, Standing Vice Chairman of Ha Tinh Provincial People’s Committee, said that the provincial plan for the period of 2021 - 2030, vision to 2050, approved by the Prime Minister, identified logistics services as one of the four key economic sectors, which will make Ha Tinh a logistics center of the Northern Central region.
The province has been mobilizing resources to build and develop Vung Ang - Son Duong port cluster, to invest in port infrastructure of Laos - Vietnam, Hoanh Son, and Vingroup.
It is known that in order to attract and maintain the container shipping route through Vung Ang port, Ha Tinh has recently issued a policy to support ship owners and container owners in and out of the port.
In addition, the province will set priority to transport infrastructure connecting sea ports and gateways.
Logistics service development will make Ha Tinh a gateway and cargo transport center for the Northern Central. According to the roadmap, the province will focus on developing logistics center and port services in Vung Ang EZ and the logistics centers in Cau Treo Border Gate EZ and in Duc Tho District.
At the same time, key routes will be upgraded and expanded and Bai Vot- Vung Ang route, railroad connecting Vientiane- Vung Ang according to the agreement between the two governments of Vietnam- Laos will be soon deployed.
To develop logistics services, Ha Tinh has had import- export policies associated with logistics development, supporting transportation costs, domestic loading and unloading, storage costs at Vung Ang port. Construction of Vientiane-Vung Ang railroad, AH 15 expressway and the wharf project has been sped up; trade promotion with enterprises in Laos, Northeast Thailand has been enhanced and solutions of sea transport through Vung Ang have been offered to enterprises in these countries.
With the seaport system having a “golden” position on the international maritime corridor, with conditions to develop into a large-scale logistics center, it is expected that the construction of a logistics center in Vung Ang EZ will create a transshipment and logistics center, creating favorable conditions to attract investors to Vung Ang EZ, promoting the potential advantages of the largest deep-water seaport in Southeast Asia.