Expectations from the resolution on supporting container ships through Cua Lo port

For domestic container shipping companies (including transshipment through international ports) that are licensed to operate container transportation according to regulations and perform unloading, loading, or both at Cua Lo Port (excluding temporarily imported and re-exported goods, and transshipment goods), with a minimum frequency of 2 port calls per month (calculated from the first day to the last day of each month), they will receive a subsidy of 100 million VND per port call.

Nghe An province has also decided to support businesses involved in containerized exports or imports to transport goods to and from Cua Lo Port. Accordingly, a subsidy of 600,000 VND per 20-foot container and 1 million VND per 40-foot container will be provided.

It is known that currently, the provinces in the North Central Coast do not have dedicated terminals to accommodate large-capacity container ships for international routes. This region also lacks a logistics service center, resulting in a lack of container routes.

As a result, goods exported or imported by container from the provinces in the North Central Coast must go through Da Nang, Hai Phong, or Ho Chi Minh City ports. Therefore, the implementation of the support policies for container ships in Nghe An is expected to attract more maritime transport companies to open container shipping routes to various seaports, facilitating the import and export of goods.

‘Boost’ to promote development in Nghe An

In recent years, along with attracting investment in port infrastructure, localities in the North Central Coast region (Thanh Hoa, Ha Tinh) have timely issued supportive policies for container transportation through seaports to encourage shipping companies to open container routes and maintain operations in the early stages, thereby promoting export, import, and socio-economic development in the area.

In 2021, Ha Tinh issued a policy of 200 million VND per port call for shipping companies licensed to operate container transportation according to regulations and perform delivery or loading at Vung Ang Port on routes with a minimum frequency of 2 port calls per month. It also provided support of 700,000 VND per 20-foot container and 1 million VND per container of 40 feet or more for businesses, organizations, and individuals transporting goods by container through Vung Ang Port.

Starting from 2022, Thanh Hoa province increased the support for international maritime transport vehicles through Nghi Son Port to 500 million VND per port call (an increase of 300 million VND per port call compared to Resolution 166/2022/ People’s Council). Additionally, it added a policy to support domestic container transport vehicles with 300 million VND per port call. Companies transporting goods by container through Nghi Son Port also received support of 2 million VND per 20-foot container and 3 million VND per 40- foot container when filing customs declarations in Thanh Hoa Customs; and 700,000 VND per 20-foot container and 1 million VND per 40-foot container when companies did not file customs declarations in Thanh Hoa Customs.

These resolutions have attracted the CMA-CGM shipping company to open a route through Nghi Son Port with a frequency of one voyage per week. To date, CMA-CGM has completed 91 container shipping voyages to international destinations through Nghi Son Port, contributing approximately 1.18 trillion VND to the budget. The Thanh Hoa provincial budget allocated over 18 billion VND to support the ships and businesses. Meanwhile, Ha Tinh is maintaining a frequency of 2 container ship voyages per month since implementing the container ship support policy. In nearly 2 years of opening the container ship route, Ha Tinh has attracted many investors to the local market, including industries supporting Formosa, wood products, and compressed paper. The frequency of container ship voyages is also meeting the demands of local import-export businesses.

To develop container ship routes, Nghe An needs additional favorable policies to bring about changes in infrastructure and transportation connectivity. At the same time, it encourages investors, including those involved in container production. Without regular container ship routes, Nghe An will find it difficult to attract businesses and investors to establish factories producing goods such as garments, agricultural processing, and seafood.

The passage of the resolution by the Nghe An Provincial People’s Council opens up a new direction expected to enhance competitiveness and boost the volume of goods through Nghe An province. From a state management perspective, Le Tien Tri, Head of the Management Board of Dong Nam Nghe An Economic Zone, affirmed that the resolution was passed to improve the investment and business environment of Nghe An province, thereby stimulating demand and accelerating import-export turnover. Nghe An focuses on containerized import and export, aiming to increase state budget revenue. Nghe An has not established international container transport routes or logistics service providers for containerized import and export through Cua Lo Port.

Bui Kieu Hung, General Director of Nghe Tinh Port, believes that the passage of the resolution by the provincial People’s Council to support container ships is an important step in promoting commercial activities and enhancing competitiveness for import-export businesses through Cua Lo Port. “It is hoped that with the passage of this resolution by Nghe An, it will create a significant ‘boost’ for the overall economic development of the locality and the seaport system in the area,” shared Bui Kieu Hung.