Project on developing logistics service in the period of 2011-2020: Making Ba Ria-Vung Tau a logistics center of international stature

The Project on Developing Logistics Service in Ba Ria-Vung Tau in the period of 2011-2020, which started being built in 2011 and has been in progress of completion, will be a changing step in the investment orientation of developing economy in Ba Ria-Vung Tau (BR-VT). The object of it is to build a logistics service system of international stature, making BR-VT a regional and national logistics service center, effectively serving the development of sea port economy, trade of the province and key Southern economic zone. This is also to make BR-VT a sea port city in the future.

PROJECT OF DEVELOPING LOGISTICS IN BR-VT: THE INEVITABILITY

Mr. Tran Minh Sanh, Chairman of BR-VT People’s Committee, formally stated: “Although there is obviously the project and the orientation, the progress of development of the type of services in BR-VT has been limited. If there has been inadequate attention paid to logistics and sea port services, opportunities to develop a field of great potential will be missed. Besides, it is impossible to have a development with a high portion of service-based economy”.

“BR-VT possesses nature advantages: having a good navigation way, being located in an international maritime axis, handling 85% of total amount of cargo for international trade, having large, modernly equipped ports that enable vessels of up to 100,000 tons to enter. However, these things are just now premises to further approach completely new fields of sea port performance and logistics services”, said Mr. Ho Van Nien, Deputy Chairman of BR-VT.

It can be seen that attempts to develop logistics services and related services is a must-do to make BR-VT a seaport city in the future. Developing logistics service is a break through, a golden key for an economy-developing strategy. So the Project is the first step to the completion of the logistics sector in BR-VT in the future.

With the rapid development of the seaports and the infrastructure as berths, yards and the connecting infrastructure, the need for the Project is considered to be urgent. And Portcoast was assigned to design the Project and it is in progress of completion. When it is approved, it will be bases for further steps as making detailed plans and investment projects for items.

EFFORTS TO THE COMPLETION OF THE PROJECT

The main content of the Project of Developing logistics services in BR-VT in the period of 2011-2020 is to set tasks for developing logistics services in BR-VT in the period of 2011-2015 with the orientation to 2020, to consider current situations and plans for logistics services and related services, then to suggest priority programs and priority items to invest and develop.

The Project suggests 7 priority programs as bases for a synchronous development of logistics in the province. They include

(1) developing and improving infrastructure for logistics development.
(2) planning and building a Logistics Center of BR-VT
(3) operating logistics services
(4) upgrading abilities for logistics services providers in the province, enabling them to provide international logistics services.
(5) assisting trade and investment activities
(6) training human resources
(7) building frameworks and policies for logistics activities

Together with efforts for the completion of the project, BR-VT has invited foreign investors to co-operate in building sea port system and logistics services in the area of Cai Mep-Thi Vai.

Mr. Tran Minh Sanh said in determination:”BR-VT will offered favorable conditions to investors and keep upgrading the investment environment, effectively assist operating businesses and investors to fulfill their tasks.”

PREMISES FOR LOGISTICS SERVICES DEVELOPMENT

The sea port system in the province as planned consists of 55 ports including 19 general and container terminals, and 36 specialized port with total capacity of 275 million tons/ year. So far, 24 of them has been put into operation with the loading/unloading capacity of 67 million tons/year.

In 2011, there were 25 foreign investment projects with the total registered capital of USD 950 million and 38 domestic investment projects with the total registered capital of nearly 12,000 billion dong that received Certificates of Investment. In the first 5 months of 2012, there have been seven FDI projects with the registered capital of USD 91 million (including added capital), and 12 domestic investments with the registered capital of 29,474 billion dong. So far, in the province there have been 300 FDI projects with the registered capital of USD 27.2 billion and 427 domestic investments with registered capital of 208.268 billion dong.

Besides with 14 industrial parks of 8.400ha, there have been 236 investment projects that are already in operation or in construction progress. Therefore, the need for the development of the logistics services is urgent serving cargo flows.

Taking part in the completion of the Project and implement investment promotion, The Delegate of leaders of the province and of related departments was sent to Europe and Japan for a logistics study. The tour has brought a more panoramic view to the logistics sector, contributing to the completion of the Project.

When the Project is completed, this will be a strategic step in the process of turning BR-VT into a logistics center.