Topic the current state of seaport’s infrastructure in vietnam and recommendations

Ho Chi Minh port Ho Chi Minh port is a national major port and a hub in the region, handling a large portion of Vietnam’s containerized and bulk cargo and is vital for trade with Southe

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

and Recommendations CLASS: TMAE305(2425-2)GD.1.3

2 | Nguyén Truong Giang 2213150064

3 | Hoang Thu Trang 2312250120

TABLE OF CONTENTS TYtrOGUCUION 0 cccececsssescesssesscsescssesescesesssaesscasssssssesaessssssassesesecessesscssesesaeiseneseseensescaseas 4 Chapter 1 Theoretical framework .ccccesscsccsessscesecssescecessessescesecssssecsecesesceseeeesseaaeas 9 1.1 Definition and Role of Seaport InÍTas†TuC†UTe .- - ác 5555k sexszxcres 9

1.2 C 0o 0oển ion 6

II: N0 3n (vi oi TP .4 8

1.3.1 By FUNCHHION 00 8

1.3.2 By LOCAION 0 9

1.3.3 By Size and CapACIẨY Q cà HH HH HH HH HH HH Hưng 10 1.4 Link Between Infữastructure and Trade Efficiency .cceccccceeeo 12 Chapter 2 Currert S†ate of Infrasiructure at Vietnamese SeapOoris 14

2.1 General characteristics Of Vietnam”s seaport sysf€m óc cccccsescscey 14 2.2 Strengths of Vietnam’s Seaport Infrastructure and Its Benefits to Trade 19

2.2.1 Vietnamis geographical advantage and government frameworks promoting 09:1901119:892/:)9)90 01) 080 N0N00808Ẻ8n8n ẦẢ 20

2.2.2 Investments in port capacity, modemization efforts, and improvements in cargo handling and berthing tis - cà cà 22 St 21H HH ng 20 2.2.3 Development of multimodal transport systerns and the adoption of advanced technologies for efficient Port OPeTAtiONS Gà 2à Sàn Sky 21 2.2.4 Governwert incertives, PPP xomoiion, and strategies to attract and sustain investment in the DOTÌ S©CĂOT 0G c S2 S11 1 1H 2111 HH HH gà du Hư 22 2.3 Challenges of Vietnam’s Seaports and Their Ủnderlying Causes 23

2.3.1 Current Performance of Vietnam’s Seaports and Its LimIts 23

W0 0o8 9.0.0 24 2.3.3 Regulatory and Policy-Related Corstrairis - -.cccccccce sec: 25 2.3.4 Environmertal and Sustainability Challendes - -.« <<: 26 2.3.5 Teclmological Gas in Seaport ÔperatlOF& - 2á cĂScccscsseeeee 27 Chapter 3 RecorrreriChtiOT - -G- cà h1 10 KH 191131 111111131 1 H210 HH tiểu 29

3.1 Development orientation of Vietnam ”S s€apOTẨS ĂcSĂSSe 11 xsveeesssss 29

3.2 Recommendations for policy/ law rrak@fS - ác ca St 29 3.2.1 Improve Plarming & Policies ccccccccessscsesecssessssecesesceseccesscssessessesseeaes 30

3.2.2 Lower Logisiics Cœts and Imyrove ÔperaliOr cc-c 30

3.2.3 Balance Performance Between Ports & se Larqe Ports Fully 30

3.2.4 Encourage More Investment & Financial Support -‹- 30

3.2.5 Strengthen Regulations & Management ccccccsccsessessssscsseescescssesenecaees 31 3.2.6 Improve Regional & Global 'Trade CormmectiOrs - 5< -5< <5 31 3.2.7 Modermize Ports with Smart TechnolodQy - Ăn 31 3.3 Recommendations for Cargo Owners in Vieinam - ác sc sex sssexes 31 3.3.1 Optimizing Pori Selection and Rouling 5: se se c2 csx 31 3.3.2 Leveraging Integrated Multimodal Trarsport 5 2< «<<: 32 3.3.3 Adopion of Digial and Teclnological Soluliors - - «-<« 32 3.3.4 Indstry Collaboration and Policy Advocacy cccc neo 34 3.3.5 Sustainablity and Euture-Proofing ÔperaliOr - <- ca 34

I0 0P 36

INTRODUCTION Increasing sea shipping and the growth in foreign trade have similarly highlighted the pivotal role of seaport facilities in advancing economic development and facilitating world trade Due to the strategic geographical location and extended coastline, Vietnam is now an emergent actor within the maritime economy Seaports function as crucial entranceways for export and import, andtherefore support national economic development However, expanding cargo volurres, coupled with increasing trade growth, have subjected present port facilities to enormous pressure Enhancing the seaports’ efficiency and capacity is imperative to maintain Vietnams export competitive advantage and facilitate smooth trade activities

Rationale for Selecting the Topic

Seaports play a vital role in trade, logistics, and economic growth As Vietnam expands global business ties, port efficiency is increasingly important The government has investedheavily in upgrading facilities, yet challenges like congestion, aging infrastructure, and bureaucracy remain Recognizing these issues is key to effective improvements

This research aligns with ongoing infrastructure projects, offering valuable insights for policyrnmkers, businesses, and academics Its findings will guide port optimization, enhance logistics, and attract foreign investment Policy recommendations will strengthen Vietnams maritime sector and global competitiveness

Structure of the Document

The paper has three chapters: Chapter I defines seaport infrastructure and its role in trade, highlighting terminals, berths, and warehouses Chapter II analyzes Vietnam's seaports, noting strengths and challenges Chapter III suggests strategies for development, policy reform, and efficiency The study aims to support Vietnams maritime growth and

econony.

CHAPTER 1 THEORETICAL FRAMEWORK

1.1 Definition and Role of Seaport Infrastructure

Seaports have played a pivotal role in international trade and transportation since the early stages of European expansion, particularly between the sixteenth and eighteenth

centuries As described in “The Geography of Transport Systems”, seaports were central

tothe development of colonial empires, supporting the growth of international trade across continents However, their potential was initially constrained by limited inland access, which hindered the direct flow of goods to and from inland regions Over tine, advancerrents in transportation infrastructure and technology allowed seaports to expand their reach and influence, solidifying their position as critical hubs in global commerce Seaport infrastructure refers to the comprehensive set of physical facilities, equipment, and systems that are designed to support the seamless operation of maritime trade and transport It encompasses a wide range of structures and services required to facilitate the safe, efficient, and sustainable movement of goods and passengers between ships and land-based transport systems, such as trucks, trains, or pipelines The core functions of seaport infrastructure include the loading and unloading of vessels, storage, and transfer of cargo, as well as ensuring connectivity to broader national or global transportation networks (Global Cargo Industry: Resilience of Asia-Pacific Shi Industries)

A seaport serves as a critical node inthe global supply chain and is often seenas the gateway between land and sea These ports handle a significant volume of goods, including raw materials, nanufactured products, and consurrer goods, facilitating international trade

A well-developed seaport infrastructure plays a key role in enhancing a country's or region's economy by promoting the import and export of commodities and goocs Modem ports are equipped with sophisticated technologies and systems for logistics management, container handling, safety monitoring, and environmental protection This infrastructure

also includes various facilities such as piers, docks, cranes, storage areas, warehouses, terminals, and maintenance facilities for ships

1.2 Key Components of a Seaport

Port facilities are composed of several fundamental physical elements that work in harmony to support the flow of goods and ensure the safe and efficient operation of rmaritine transportation These elements are designed to accommodate the movement of vessels, cargo handling, and maintenance, while also protecting both the infrastructure and the surrounding environment According to Notteboom, T., Pallis, A., & Rodrigue, J.-P 2022) Port economics, managerrent, and policy Routledge., there are 11 fundamental physical elements that constitutes a port facility:

A harbor is a sheltered area, either naturally occurring or created through the construction of protective structures like breakwaters, designed to accommodate port activities The depth and navigation within the harbor are carefully regulated to ensure safe and efficient operations

Anchorage areas are designated spaces where vessels can anchor while they await

an available berth These areas are clearly marked by buoys and are often equipped with services suchas provisioning and bunkering

Breakwaters are permanent, man-made structures that extend into the sea to shield the harbor fromthe impacts of tides, currents, waves, wind, and stormsurges, ensuring that the port remains calm and protected for vessels

Navigation channels are carefully dredged ship access routes that allow vessels to safely enter the harbor These channels are maintained at a controlled depth, with the movenents of ships often guided by pilots and tughoats

A tarning basin is a circular or spacious area within the harbor designed for vessels

to turn around or maneuver This area is large enough to accommodate the largest ships allowed at the port and is typically twice the length of the largest vessel expected to dock

Berthing basins, also known as docks, are dredged areas located next to berths where ships can safely moor according to specific requirements The size and depth of the berthing basin are crucial to ensure that vessels can dock securely, with periodic maintenance required to maintain the appropriate depth

Berths themselves are docking structures that provide the necessary length and lateral capacity to facilitate the docking and mooring of ships

'Wharves are long docking structures that are aligned parallel to the shore, often housing multiple berths for the efficient loading and unloading of cargo

Jetties are narrow structures that extend into the water, primarily used for the loading and unloading of cargo directly onto ships Unlike piers, jetties do not have extensions for terminal facilities and are solely focused on cargo operations

Piers are docking structures that extend out from the shore and are usually connectedto terminal facilities Piers canserve various purposes, including holding storage sheds and warehouses for cargo handling

Dry docks are special basins designed to be flooded and emptied, primarily used for the construction, maintenance, and repair of ships These facilities allow ships to be raised above water for necessary work

1.3 Classification of Seaports

Seaports contribute significantly to world trade in terms of the source of goock, industries, and passengers Seaports are categorized based on Function, Location and Size/Capacity These categories make one understand the role and position of various ports inthe maritime sector

1.3.1 By Function

Seaports serve various purposes depending upon the nature of the port facilities and the types of the cargoes that are being shipped According to (Sheikholeslami_and Tabbakhpour Langeroodi, 2024) Seaports are divided into seven general groups according

to the type of use of the port and the purpose of its use, and the hasic activity in the port will be different accordingly

Passenger port: A passenger port is a port that is used for passenger transportation and water access In these ports, only special passenger transportation services, including boarding and disembarking, and general or comprehensive maritime transportation fleet services are provided, and only passenger fleet docks are there

Container port: A container port is a port that is used for container transportation of goods Inthese ports, only the services of loading unloading, and storing containers are provided, and only the container fleet docks there

Mililary port: A military port is a port that is used for military access to the sea and transportation of equipment and military forces in water corridors In these ports, only military services and general services of the naval fleet are provided, and only the military fleet docks there

Fishing port: A fishing port is a port that is used for fishing activities and where special fishing services are provided, including keeping marine animals, fishing equipment, and general services of the maritime transportation fleet Only fishing vessels dock in these ports

Extractive port: An extractive port is a port that is used for extracting oil from wells or extracting salts fromthe sea, and provides services suchas drilling equipment, maintenance, and general services of the maritime fleet Inthese ports, only special naval fleet docks

Research port: A research port is a port that is used for research in the sea and where different services are provided depending on the type of activity, such as aquatic

maintenance equipment, water surveying equipment, waterway release equipment, and

general rraritime fleet services

Complex port: A complex port is a port where more than one maritime activity is carried out and depending on the type, it can be a combination of the seven mentioned ports

1.3.2 By Location

Seaports can be geographically further divided As per (Sheikholeslami_ and

‘Tabbakhpour Langeroodi, 2024), due to the expansion of waterways and the development

of maritime transportation over time, seaports may be located in different geographical locations, hence the ports can be classified into seven general groups from the point of view of the geographical location of the port

Coastal port: A coastal port is a port that is located near the coast of a river, sea, lake, or ocean and provides a water connection with land

Seaport: Seaport is a port that is located in the sea and far from the land and wrovides the possibility of providing services or activities in that place

Island port: An Island port is a port located on the coast of the island and provides

a water connection with the island

Dry port: A dry port is a port that is located inside the territories and gradually transfers maritime operations toa place far fromthe vicinity of the sea These ports usually wrovide comprehensive services for transportation, storage, packaging, aggregation, and distribution of goods Dry ports provide a suitable space for extensive activity and development of transportation services and are designed as a complerentary element of coastal ports inthe conditions of need

Floating port: A floating port is a large maritime transportation fleet known for its high level of port service and moves inthe sea depending on the need

Polar port: Ports that are located in places prone to sea surface freezing are called polar ports In these ports, special stopping and accommodation services, route clearing operations, and relief services are provided

Subsea port: A Subsea port is a port that is located at a lower level than the sea level to access the sea water level and provides services such as the top of the sub-surface fleet and transmission lines in order not to occupy the water level

1.3.3 By Size and Capacity

Ports differ significantly in volumes, capahility to handle, and infrastructural aspects According to UNCTAD (2021), "port size and capacity are the important determinants of how well placed they are to cope with current trends in shipping and ship sizes that are increasing in size" The ports are classified under:

Smalls Ports: least modernized and their primary activities involve local passenger handling and carriage of cargo The ports have limited facilities and are poorly equipped, presumably to serve fishing boats, small cargo vessels, and ferry services between remote coastal communities They are vital in regional trade and local economy where access to larger ports is poor A typical case of Vietnamese minor ports is Quy Nhon Port, where small-sized export handling and domestic cargo are just the key objectives but support the fishery and agriculture sectors in the central area

Medium Ports are able to handle mediumsize ships and diversified cargoes like bulk cargoes, general cargoes, and moderate-sized containers Vietnamese medium ports have logistics infrastructure, warehouses, and cranes in order to facilitate shipping services with many varieties They contribute significantly to Vietnamis economy by acting as regional and national gateways for the distribution of trade One example is the Da Nang port, the largest commercial port in Central Vietnam, with general cargo, containerized cargo, and bulk cargo handling and servicing regional economic activity

Major Ports enable international trade by serving millions of TEUs per year and hosting glohal shipping lines They possess state-of-the-art installations, such as deep- water berths, computerized container terminal systems, and large logistics space These are all very important for the country's export business, especially in electronics, textiles, and manufacturing industries Ho Chi Minh City Port (Cat Lai Terminal) is Vietnam's busiest container terminal, serving most of Vietnam's imports and exports ands one of the leading trade centers with its partners in Asia, Europe, and North Anrrica

Deepwater Ports: serve ultra-large containerships and oil tankers that are deep- draft ships These ports boast deep harbors and specialized terminals to receive huge volumes of cargo, includingindustrial and energy cargo Cai Mep— Thi Vai Port, Vietnams biggest deepwater port, can receive the worlds largest container vessels and serve as a central focal point for Vietnams international trade hub, It is anideal gateway for shipping business shipping goods to Europe and Anrrica

11

Hub Ports: serve as transshipment points, where shipments are offloaded from reca vessels to regional smaller ports The ports enhance trade logistics and the efficiency

of shipping Hai Phong Port is one such impressive example It is a key transshipment point

in northern Vietnam It links main industrial zones to foreign markets and serves as a strategic trade logistics hub with China and other partners in the world

1.4 Link Between Infrastructure and Trade Efficiency

Infrastructure is one of the determinants of trade since highly developed port facilities, transport means, and logistics operations directly affect the moverrent of trade

As quoted in (UNCTAD, 2021), "efficient port infrastructure reduces transportation costs, minimizes delays, and enhances global trade competitiveness"

Port Infrastructure: With the aid of cranes that are modern, automated handling systems, and deep-water berths, port infrastructures enable the fast turnaround time of the shipto ensure efficient global trade (Rodrigue, Comtois and Slack, 2016)

Connectivity to Land Transport: Productivity within the port also relies upon the port's link to roadways, rail networks, and inland waterways As quoted by (Rodrigue Comtois and Slack, 2016), "ports that are well connected through seamless multimodal links lower congestion and improve the reliability of the supply chain"

Technology and Digitalization: Srart port technologies such as blockchain, AI logistics, and automated terminal operations rationalize operations and decrease the cost (UNCTAD, 2021)

Regulatory Framework and Facilitation of Trade: Simplifyingtrack transactions, open regulations, and de-bureaucratization ease the import-export procedure and trade operations are facilitated (Stopford, 2008)

In the context of developing regions, enhancing port infrastructure can lead to substantial economic benefits For instance, (Sahoo et_al., 2024), research focusing on Senegal revealed that upgrading port facilities could increase seaborne trade potential, thereby accelerating economic and social development in the country and the broader region Singapore is a prime example of how sea trade can be spur economic development

By investing in top-of-the-line port infrastructure, the nation utilized its geographical location along overcrowded shipping lanes as a platformto become a world shipping center Singapore's Port, a leading world port, enables massive transshipment, generating trade and logistics This promoted greater economic diversification into finance, manufacturing, and technology and generated high-wage jobs Today, the shipping sector accounts for approximately 7% of Singapore's GDP, and Singapore is a global leader in trade and economy

A well-developed port system has the function to contribute to the economy's growththrough the facilitation of quick and cheaptrade As indicated by (UNCTAD, 2021),

“countries that modernize their ports and logistics networks capture valuable gains in trade efficiency and global market integration’ Vietnam will be essential to ensure the role of becoming a centerpoint trade within Southeast Asia through continued investment in port modemization and inland links

13

CHAPTER 2 CURRENT STATE OF INFRASTRUCTURE AT VIETNAMESE

SEAPORTS

2.1 General characteristics of Vietnam’s seaport system

Vietnam’s seaport system is one of the largest in Southeast Asia, with 298 ports of

various types, including international gateway ports, regional ports, and specialized ports With a coastline stretching over 3,260 kilometers, and under the Seaport Master Plan (Decision 1579/QD-TTg, December 2021), Vietnam has developed an extensive seaport network classified into six groups based on geography and economic function

Group 1 (Northern region) Group 4 (South-central region) Group 2 (North-central region) Group 5 (Southeastern region) Group 3 (Central coastal region) Group 6 (Mekong Delta region)

This extensive system plays a crucial role in Vietnam’s trade and logistics network,

handling more than 706 million tons of cargo in 2021 Moreover, Vietnam has developed key deep-water ports, suchas Lach Huyen Wharf in Hai Phong, which accommodates ships

up to 132,000 DWT, and Cai Mep Wharf in Ba Ria - Vung Tau, capable of receiving

vessels up to 214,000 DWT The total cargo handling capacity of Vietnam’s ports is

projected to reach 1,140-1,423 million tons annually by 2030, including 38-47 million TEUs of containerized goock

Despite this, the system suffers from fragmentation and inefficiencies:

1 A key issue is the lack of coordination between local governments and private enterprises, leading to overlapping investments and competition rather than a unified development strategy

2 Shallow water depths in northern ports limit their ability to accommodate large vessels, forcing many ships to dock in transshipment huks like Singapore and Malaysia instead of directly at Vietnamese ports

3 Most ports lack advanced loading and unloading equipment, and road congestion around major ports increases delays and logistics costs

Major seaports and their siqnificance

1 Ho Chi Minh port

Ho Chi Minh port is a national major port and a hub in the region, handling a large

portion of Vietnam’s containerized and bulk cargo and is vital for trade with Southeast

Asia, the U.S., and Europe Ho Chi Minh port includes the following component ports:

Hiep Phuoc port on Soai Rap river, a general and specialized port that serves as a substitute for existing ports on Soai Rap river and a hub for shipping exports to the Mekong Delta region, capable of receiving ships upto 5,000 dwt, container ships of 4,000 TEU

15

Cat Lai port (on Dong Nai river), a main container port in the immediate term, capable of receiving ships from20,000 to 30,000 dwt or over (load reduced)

Can Giuoc—Long An port (on Soai Rapriver), a general and specialized port for ships from 20,000 to 50,000 dwt and 70,000 dwt (load reduced) to enter and leave through Roai Rap qate, servingmninly as a satellite port of the hubin the area of Ho Chi Minh City

In 2024, Ho Chi Minh port achieved the total container throughput of 10,81 million TEUs (an increase of 10.81% in comparison with the previous year) and the total revenue

of 32,000 billion VND (15.6% increase) and profit of 237 billion VND

2 Da Nang port

Da Nang port is a strategic regional port, supporting manufacturing, tourism and military logistics Moreover, it is a major hub for trade with ASEAN countries and serves

as an international gateway in the central region, including the following component ports:

Tien Sa port, a general and container port, that serves Da Nang City, part of the north western highlands and transit goods from Laos, north east of Thailand can receive ships from30,000 to 50,000 dwt, container ships upto 4,000 TEU, international passenger ships of 100,000 GT and over with synchronous and state-of-the-art ports

Tho Quang port, a general port, that receives ships from 10,000 to 20,000 dwt, has

a specialized port for ships from 1,000 to 5,000 dwt

Lien Chieu port that mainly handles bulk cargo and liquid cargo serving industrial and service facilities here in the immediate term

3 Quang Ninh Port

Quang Ninh Port is a national major port inthe region, which primarily handles bulk cargo, coal exports, and industrial mmterials, supporting the energy and mining industries

The port also serves for trade for industrial zones and links Vietnam with global supply chains It includes the following ports:

Cai Lan port is the main port that mainly handles general and container cargo from ships upto 50,000 DWT and container ships upto 4,000 TEU

Cam Pha port is a specialized port that handles general cargo and containers, receiving ships from 50,000 to 70,000 DWT at berth and 100,000 DWT at transshipment area Ports of Nam Cau Trang are satellite ports, carrying out complete construction of an oil port for 20,000 DWT ships at Mong Duong Ward

Van Gia port, a local general port that mainly serves Mong Cai checkpoint city including a transshiprrent port for ships of upto 10,000 DWT andinland wharves for srmall vehicles in Dan Tien and wharves on Ka Long River

—Ports of Mui Chua, Van Hoa, Van Don, local ports serving ships from 3,000 to 5,000 dwt Mui Chua port, only intended for mining chemical industry along with general

cargo for Cao Bang, Lang Son

Yen Hung port, a specialized port with a general and container port receiving ships from 10,000 to 40,000 dwt or more, mainly serving Yen Hung— Dam Nha Mac industrial zone, performing shipbuilding & repairs, receiving oil product supply

4 Can Tho port

Can Tho port is a national major port and also a hub in the region which plays a critical role in agricultural exports, It includes the following component ports:

Cai Cui port, a main port, that mainly handles general cargo for ships from 10,000

to 20,000 dwt (load reduced), with specialized ports serving industrial — service facilities along the river to constructed and developed in synchro with traffic network (connected with ports) and goods and service distribution center after port

17

Ports of Tra Noc, O Mon, a specialized port serving industrial — service facilities along the river with a general port supporting Hoang Dieu port- capable of receiving ships from 5,000 to 10,000 dwt

3 Hai Phong Port

Hai Phong Port, the largest seaport in northern Vietnam, plays a crucial role in the country's maritime trade and economic development as it serves as the main logistics hub for northern industrial zones, handling containerized goods, manufacturing exports, and imports from China, Japan, and Korea

The port features an extensive infrastructure with multiple terminals, including container, bulk, and liquid cargo facilities, allowing it to handle diverse types of goods efficiently Its integration with Vietnam’s national transportation network, including highways, railways, and inland waterways, further enhances its role in facilitating domestic and international trade As part of its long-term development strategy, Hai Phong Port continues to invest in infrastructure upgrades, workforce development, and sustainability initiatives to maintain its position as a key logistics hub in Southeast Asia

The port boasts modern infrastructure designed to accommodate various types of cargo, featuring multiple terminals:

Container Terminals: Equipped withstate-of-the-art cranes and handlingsysterrs, these terminals enable efficient loading and unloading of containerized cargo, handling millions of TEUs (Twenty-foot Equivalent Units) annually

Bulk and Liquid Terminals: The bulk terminals manage dry bulk commodities suchas coal, grain, and construction materials, while liquid terminals cater to petroleum

Transport Connectivity: Hai Phong Port is well-comected to the national transportation network, including roads, railways, and inland waterways, enhancing logistics efficiency