Midterm report current status and recommendations for hai phong port

Located strategically in the northern part of Vietnam, Hai Phong Port is not only a key hub for international trade but also an important driver of regional economic development.. This p

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

MIDTERM REPORT CURRENT STATUS AND RECOMMENDATIONS FOR HAI

PHONG PORT

PhD Hoang Thi Doan Trang

Chapter II: Current status and recommendations for Hai Phong Port 11

2.1.1 Description of the formation process of Hai Phong Ports II 2.1.2 Strategic location and 1ts role in Vietnam's trade network 11

2.2.1 Executability ofplanning proJects approved by the competent state

2.2.2 Cargo throughout at sea ports tonnage capacity of vessels received at sea

PIN eẦ a 21 PIN Nho ha năAỘẶ 26

LIST OF TABLES Table 1 Statistics on cargo throughput at Hai Phong Port from 2018 to 2023 Error! Bookmark not defined

Table 2 List of container ports in Hai Phong Error! Bookmark not defined

Introduction Maritime ports are important components of a country's transport infrastructure, acting as primary entry and exit points for import and export activities, besides being intermodal transport hubs Among a wide range of maritime ports in Vietnam, Hai Phong Port holds a particularly significant position Located strategically in the northern part of Vietnam, Hai Phong Port is not only a key hub for international trade but also

an important driver of regional economic development As one of the major ports of the country, this port holds a very important position in connecting Vietnam with active international sea routes and integrating the country's economy into global markets

In these years, Hai Phong Port has made great developments of infrastructure, operational capacity, and efficiency in logistics This is in line with Vietnam's overall plan on developing its maritime economy to strengthen its position in international trade However, alongside its achievements, the port faces challenges in infrastructure modernization, management practices, and increasing competition in the region This study, entitled Current Status and Recommendations for Hai Phong Port, aims to provide a comprehensive analysis of the current status of the port while outlining possible plans for its future development The first chapter introduces the conceptual framework for maritime ports, including their definitions, roles, types, and performance measurement criteria This conceptual background sets the context required for assessing the operational effectiveness of Hai Phong Port

The second chapter carries out a comprehensive review of Hai Phong Port including its favorable geographical location, available infrastructure, operating performance, and achievements obtained within the last five years Besides, it highlights

a number of shortcomings such as weaknesses in infrastructure, management and the

evaluation criteria based on the scoring system, as our report does not clearly specify how points are allocated for each aspect Instead, we focused on assessing the progress

or regression of the Hai Phong Special Seaport project compared to its past performance We believe this method provides a clear picture of whether Hai Phong has maintained its position and performance as a special seaport Moreover, in the performance section, we only analyzed based on the two main points of the evaluation criteria, without addressing the status of human resources, investment resources, port management, and infrastructure We will cover the status of each of these areas in the limit and successive sections and analyze them accordingly However, for some parts,

we couldn't find charts showing data over the past five years, so we will focus on key points to write about

The paper concludes with targeted recommendations to address these limitations

modernization of the infrastructure, optimizing port operations, attracting investments, and developing human resources By implementing such strategies, Hai Phong Port will

be one of the key maritime hubs in Southeast Asia, thereby contributing to Vietnam's sustainable economic growth and integration with global trade.

Chapter I: Introduction of sea ports Sea ports form an integral component of maritime transport systems, mainly because they are the entry points for global trade and intermodal transport These key infrastructures support the transit of goods and passengers, foster economic growth, and improve connectivity around the world In Vietnam, with a coastline of more than 3,200

km, seaports belong to the basic structure of the country's development Through the years, the legal framework that oversees seaports has been dramatically changed to meet modern port development and globalization demands The Maritime Code of Vietnam

2015 guides in detail the organization, standards, classification, and functions of each seaport, thereby showing modernity and flexibility This development underlines the growing importance of maritime ports in promoting commerce, enhancing competitive advantage, and fostering economic integration at both regional and global levels 1.1 Theoretical basis of sea ports

111 Definition

Under Clause 1, Article 73 of the Maritime Code of Vietnam 2015, a seaport is described as an area with both land and water zones that have infrastructure to serve vessel operations associated with cargo operations of loading and unloading, passengers’ embarkation and disembarkation, among other related services In a seaport, there can be one or more terminals, and in each terminal, there could be one or many berths

1.1.2 Characteristics

The identification of seaports is subject to certain criteria defined in Article 74

of the Maritime Code of Vietnam 2015 A sea port must possess a water area with direct linkage to the sea so that an entrance for maritime activity can be established Its geographical site must be capable of ensuring key infrastructures including berths, anchorage areas, transfer terminals, and navigational channels under safe and efficient operation of vessels It also must have specific advantages regarding navigation for shipping, such as proximity to primary trade routes The seaport also needs to function like a logistics hub, involved in domestic cargo transportation, import-export operations, and transshipment by sea routes

1.1.3 Roles

The role of sea ports in economic development

Seaports serve critical roles in the marine economy and, therefore, are important elements of national economies They contributed as entry points for global commerce, allowing imports and the export of goods, as major nodes for the transfer between maritime transport and rail, road, and inland waterways As a coastal country, nearly half of Vietnam's provinces and cities border the sea, with a coastline over 3,260 km

long, running along the length of the country Vietnam's extensive territorial waters comprise numerous peninsulas, deep bays, and sheltered harbors—strategically located

on the international shipping route between the Indian and Pacific Oceans From Vietnam's coastal ports along the East Sea, goods sail through the Malacca Strait to reach the Indian Ocean, the Middle East, Europe, and Africa, or through the Bashi Channel to reach the Pacific Ocean and ports in Japan, Russia, and the Americas According to the General Statistics Office, in 2023, the total volume of cargo handled at Vietnamese sea ports reached 756.8 million tons, up 5% compared to 2022, with containerized cargo estimated at 24.7 million TEUs Inland waterway vessel traffic reached 351.8 thousand trips, up 2%, and passenger throughput at sea ports totalled 7.04 million, up 17% from 2022 More than 90% of the total import-export cargo volume of Vietnam is transported by sea, showing the important contribution of sea ports to the country's trade balance and allowing Vietnam to maintain a trade surplus

The logistic sector of Vietnam, with sea ports as a key link, contributes about 4- 5% of the national GDP Big ports, such as Hai Phong and Ba Ria-Vung Tau, act as very important gateways for foreign trade and attract considerable FDI and generate jobs for millions of workers Overall, the logistic sector directly employs more than one million people; sea ports account for a large share of this workforce Furthermore, sea ports generate income to support their operations and facilitate development through various service activities related to vessels and cargo, including pilotage, towing, ship repair and maintenance, supply services, and international cargo transshipment, thereby contributing to both national and local economic advancement

The role of sea ports in the logistics system

In the context of increased global economic interconnectivity, logistics plays a very important role in enhancing the competitiveness of the economy Seaports, as gateways to international trade, are a critical part of the logistics chain that links various modes of transportation and facilitates supply chains

Role in Supporting Multimodal Transport Integration

Seaports act as important linkages between international maritime transport and inland transport infrastructure, including roads, railways, and inland waterways A proper integration of the different modes of transportation at seaports will enable the speedy, efficient, and least costly transportation of goods from large international vessels to local distribution centers and vice versa There will be a reduction in transit times, lowering of logistics costs, and ultimately an increase in the competitiveness of Vietnamese products in the world market

According to the General Statistics Office, in 2023, the volume of cargo handled

at Vietnamese seaports reached 756.8 million tons, up 5% as compared to the volume

in 2022 The estimate for container throughput is 24.7 million TEUs The above figures describe the increasing role of seaports in facilitating multimodal transport, enhancing the efficiency of cargo movement, and contributing to economic growth

Improving the Competitiveness of Vietnam Logistic Industry

Modern, synchronized sea ports with simplified operational processes will contribute to a decrease in logistics costs and an increase in the competitiveness of Vietnamese goods on international markets In addition, a modern port system is among the main factors to attract foreign direct investment, hence supporting economic growth World Bank's 2023 Logistics Performance Index: Vietnam's rank is 43/139 countries, down four places from the previous year The ranking means that in spite of this challenge, Vietnam has worked continuously to revive its logistic competitiveness, and seaport infrastructure has been a significant part of these successes

1.2 Criteria for evaluating sea ports

According to Article 3 of the Maritime Law of Vietnam 2015, the classification and evaluation of sea ports in the country are based on two main criteria: the scope of influence of the port and the scale of the port These criteria are established to ensure that ports are categorized according to their economic importance, operational capabilities, and strategic role in Vietnam’s maritime infrastructure

1.2.1 The scope of influence of sea ports

The scope of a sea port's impact is evaluated based on the master plan adopted for the development of the port system by the concerned state authority This parameter

is further categorized into the following levels:

National or interregional economic development: Ports that serve as engines of economic and social development for the country or several regions, including those with international transshipment or gateway functions

National economic development: Ports that mainly serve the economic and social development of the country as a whole or of interregional areas

Regional economic development: Harbors that focus on promoting economic and social development within certain regions

Local economic development: Ports that serve primarily to promote the economic and social development of a region

1.2.2 The scale of sea ports

Cargo throughput at sea ports

It refers to the total weight or volume of goods, both imported and exported, handled by the port in a given period of time—asually annually High cargo throughput indicates that a port operates as an important trading point able to facilitate the exchange

of goods between different parts of the world and markets abroad In an absolute sense, high-throughput ports usually have a modern infrastructural and logistical facility capable of handling all types of cargo: bulk, break-bulk, and containerized shipments The higher the throughput, the more strategically important the port becomes for national and international trade

Tonnage capacity of vessels received at sea ports

Vessel tonnage capacity describes the size and weight of the largest vessels a given port can handle Ports are built to service certain classes of vessels; the larger and deeper ones will be able to host larger ships carrying more cargo This is a must to minimize transportation costs, as increased vessel size leads to lower fuel consumption and offers more favorable economies of scale per cargo unit The capacity of a port to accommodate larger vessels augments its competitive standing within global shipping networks and reinforces its position as a crucial entry point for international trade 1.3 Classification

According to Decree No 76/2021/ND-CP: Regulations on the Criteria for Classifying Sea Ports Sea ports are classified based on scale, function, and the system

of sea ports in Vietnam The categories include:

Special seaport

A special sea port is that large-scale port which serves a nation or a particular area for economic and social development while at the same time operating either as an international transit or as a gateway for foreign trade Generally, the infrastructure of these ports will be modern, integrated facilities that can accommodate vessels of larger capacities

Evaluation Criteria: final grade above 90 (out of a maximum 100, according to appendix of the Decree 76/2021)

Current port: Hai Phong Port and Ba Ria-Vung Tau Port

Sea Port Class I

A port with high cargo handling capacity and an important role in the economic and social development of a country or a region Class I ports serve either as international gateways or major regional facilities, connecting both international and national maritime routes The infrastructure of these ports is relatively well-developed

to handle the needs of medium- and large-sized vessels

Assessment Criteria: Score from 70 to 90 (out of a scale of 100, as specified in the appendix to Decree 76/2021)

Currently, Vietnam has 15 Class I ports, of which the leading ones are Quang Ninh Port, Thanh Hoa Port, Nghe An Port, Ha Tinh Port, Thua Thien Hue Port, Da Nang Port, Ho Chi Minh City Port, and Long An Port, and others Some of the ports, such as Thanh Hoa, Da Nang, and Khanh Hoa, are on the list to be developed into Special Sea Ports

Sea Port Class IT

These ports have a medium scale and capacity to handle and play an important role in the economic and social development of a specific region or locality

Evaluation Criteria: Score from 50 to 70 points (out of 100, as outlined in the appendix

to Decree 76/2021) Existing Ports: So far there are 6 Class II ports including Quang

Binh Port, Quang Tri Port, Ninh Thuan Port, Binh Thuan Port, Hau Giang Port and Dong Thap Por

Sea Port Class HIT

These ports are on a smaller scale, primarily serving the transportation needs and fostering the economic and social development of a specific community

Evaluation Criteria: Less than 50 points (on a scale of 100, according to the annex attached to Decree 76/2021) Modern Ports: At present, there are 16 Class II ports, including Thai Binh Port, Nam Dinh Port, Ninh Binh Port, Phu Yen Port, Binh Duong Port, Vinh Long Port, and others

Chapter II: Current status and recommendations for Hai Phong Port 2.1 Overview of Hai Phong Ports

2.1.1, Description of the formation process of Hai Phong Ports

The French established Haiphong port in 1874 to support their expeditionary army By the beginning of 1939, the port handled 23% of Indochina's imports and exports

In 1956, the Shipping Industry formally took over management and operation of the port After more than ten years in operation, the port's management was passed to the Shipping Department

Hai Phong Port transitioned to the operating style of a limited liability business under the Vietnam Maritime Corporation in late 2007 However, after a brief period of time, in 2014, the port formally changed to a joint stock company Currently, the port

is controlled and operated by Hai Phong Port Joint Stock Company

2.1.2, Strategic location and its role in Vietnam’s trade network

Strategic location

Quang Ninh is a central pole in the economic triangle Hanoi - Hai Phong - Quang Ninh, which contributes significantly to the country's growth prospects Following the publication of Hai Phong - A Vision for Growth in April 2019, the current article will look into how Quang Ninh, along with Hai Phong, prepared to become a regional commerce hub and a driving force for development in northern Vietnam

Hai Phong, located around 120 kilometers east of Hanoi, is not only the largest seaside city in northern Vietnam, but also one of the country's key economic centers Vietnam has five municipalities: Hanoi, Ho Chi Minh City, Can Tho, and Da Nang As

of 2021, it is the country's seventh-most populous metropolis, covering 1,527 square kilometers and home to 2.07 million people

Hai Phong serves as a major trading hub due to its strategic location on the edge

of the Red River Delta and closeness to the Chinese border Hai Phong, the only city in the North with five modes of transportation (railways, highways, airplanes, inland

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waterways, and sea), has the potential to become a hub for large-scale manufacturing, industrial parks, and economic zones throughout Southeast Asia

Vietnam has unique geographical advantages, including a long coastline Vietnam is on the radar of logistics investors because it is located in Southeast Asia, a rapidly growing region, and is close to important markets such as China and India, as well as the eastern connection to the Pacific Ocean and Malaysia, Thailand, and the Philippines This, combined with the country's compelling market fundamentals recently, has made Vietnam the unusual promising market for multi-model logistics development in the decade of the 2020s

Its role in Vietnam’s trade network

In recent years, Hai Phong has maintained its status as one of Vietnam's top two fastest rising gross regional domestic product (GRDP) locales Hai Phong's average annual growth rate from 2017 to 2021 was 15.26 percent, over double that of 2012 to

2016, and 2.9 times greater than the national average

The port of Hai Phong not only serves domestic freight transit needs, but it also plays an important role in international trade It serves as Vietnam's principal import and export gateway, connecting with ports in Asia, Europe, and the Americas In January, Hai Phong Port welcomed Maersk's new HP3 service line The route will connect Busan, Kaohsiung, Nansha, Haiphong, Yantian, Hong Kong, Cagayan De Oro, Cebu, Hong Kong, Nansa, Kaohsiung, and Busan, with an estimated capacity of 800-

1000 TEU

Currently, Vietnam is on the radar for more international investment It is also a popular alternative destination outside of China since the country has effectively developed an evolved industrial base targeted toward a higher manufacturing value chain (see Vietnam: Southeast Asia's New Industrial Powerhouse) This is supported by

a number of critical characteristics, such as strategic location, a business-friendly climate, and competitive labor prices, which will help to improve the country's profile Vietnam's coastline stretches over 3,200 kilometers along the East Sea, giving it

a particularly advantageous geographical location that allows for easy access to the world's major maritime channels It is viewed as a key benefit, increasing the country's involvement in the China + | plan As a result, several major industries are turning to Vietnam, particularly Northern Vietnam, to support their China+1 strategy They are keeping critical activities in China and expanding their supply chain with new operations in Vietnam, as seen by the rising share of FDI flowing into the North over the last decade

2.1.3 Current capacity and infrastructure

Waterway traffic system

The Haiphong canal system connects practically all of the North's provinces and delivers up to 40% of all freight handled by waterways in the region Haiphong today

boasts almost 400 kilometers of inland waterways, including more than 50 inland canal ports, three floating bridges, and six ferry piers The canal's total length is 85 kilometers (inland waterways- Haiphong Department of Planning and Investment, 2017) A diversified river system of 19 rivers supporting inland waterway transit to the Red River Delta provinces totals 211.6 kilometers in length Five main rivers are: Da Bac- Bach Dang river length 32 km, Cam river length 30 km, Lach Tray river length 45 km, Van

Uc length 35 km

In fact, it is clear that inland waterway transport in Hai Phong has a lot of potential and advantages for development However, Haiphong only uses a small percentage of its transport capacity since services and facilities are still limited, and present investment and planning are insufficient The system of ports and wharves along transportation routes is not fully built Large vehicles cannot use the majority of loading and unloading methods Some deep-water ports are under construction, but no road connecting the port to the rest of the traffic system is being built The number of vessels

is huge, but the tonnage and capacity are tiny, and the range is limited, therefore it does not provide high transport productivity and low economic efficiency

Seaport system

Haiphong is a national seaport complex with 12 main ports and many small ports throughout the city Haiphong Port is one of the largest ports in Vietnam and Southeast Asia as a whole, and it is located on a marine transport route that connects Singapore to Hong Kong and other seaports in Eastern and Northeastern Asia Hai Phong ports handle 95% of overall cargo throughput measured in container TEUs, demonstrating their importance to the North's logistics industry Hai Phong has about 20 ports that serve a variety of tasks, including the handling of liquefied petroleum gas, cargo, dry bulk cargo, container cargo, shipyards, and small tonnage boats The ports are controlled and operated by a variety of enterprises

Vietnam has a very long coastline that extends almost entirely over the western half of the South China Sea With about 3,260 kilometers, it is the world's largest shipping route, with considerable oil and gas deposits, and ranks 27th Approximately 40% of cargo moved from the Indian Ocean to the Pacific travels via the South China Sea before arriving at China, Japan, South Korea, and the United States

Transport systems are inadequate and stifle development, raising industrial costs and deterring investors Existing ports lack continuous docks or direct connections, preventing them from being upgraded to transshipment centers The existing berth design may have an impact on transit cargo handling, since containers acquired from ships cannot be successfully transported to mother ships because the berth is insufficiently lengthy for both ships In Chua Ve terminal, berth length of CV3, CV4, CV5 berth are 550m in each berth, which is highest length berth in Hai Phong ports ( The Second Zone Maritime Pilotage Single, undated 2018), the issue is that when two ships of 350m length enter a port at the same time, one ship must wait outside the port

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Furthermore, the berth length of the Dong San Hai container terminal in Shanghai Port 1s 1436m (Wang, 2016), which is about 2.7 times the berth length of Chua Ve Terminal Road network

External road: National route 5A connects Ha Noi, Hai Duong, and Hai Phong Total length is 102 kilometers The Ha Noi-Hai Phong Highway has a total length of 100.5 kilometers National route 10 is a 35-kilometer-long interprovincial route that runs along the northern coast and through six towns and provinces: Quang Ninh, Hai Phong, Thai Binh, Nam Dinh, Ninh Binh, and Thanh Hoa It also crosses Cat Ba Island near Hat Phong National Road 37 Total length is 20.1 kilometers

Under construction roads: Dae-Gwun Yoon, Thi Bich Thuy Doan The Quang Ninh-Hai Phong Highway, which is 19.5 kilometers long, is expected to open in 2018

It also includes the Bach Dang Bridge (Hai Phong Department of Planning and Investment, 2017) Coastal Highway Quang Ninh-Hai Phong-Ninh Binh, total length

160 kilometers Tan Vu-Lach Huyen Highway has a total length of 15.63 kilometers (The Vietnam Investment Review, 2017).- Internal roadways: includes 14 city main highways and provincial roads totaling 250 kilometers in length Hai Phong city has over 600 streets spread across seven districts The longest road is Pham Van Dong Street, which is 14.5 kilometers long The shortest is Doi Can Street, which connects

Le Loi Street to Luong Van Can Street in Ngo Quyen district and is only 70 meters long

The external and out-of-urban transportation networks mostly match travel demand, however there are constraints on river crossings, line capacity, and transport service quality Over 80% of cargo from Hai Phong Port is anticipated to be delivered

by road, with rail and interior waterways accounting for the remainder

Urban traffic 1s at risk of congestion and traffic disability, and the City Traffic Safety Board reports that more than 70% of traffic accidents occur in suburban regions owing to a lack of main highways, restricted crossings, a shortage of parking spaces, and insufficient public passenger transportation The streets in Hai Phong are tiny, narrow, and tidy Hai Phong Statistics Yearbook, 2016 Currently, the infrastructure in the two main corridors is overburdened by the requirements of the East-West corridor and the Hai Phong-Thai Binh corridor Highway 5 is the sole road in the east-west corridor that must manage the whole volume of products delivered from Hai Phong's docks

2.1.4, Objective of Hai Phong port to 2030

Develop seaport services, logistics

Hai Phong International Container Port (HICT), a joint venture between Saigon Stevedoring Company and three foreign groups and enterprises, was built and opened

in 2018 on 44.9 hectares of land in Cat Hai town, Cat Hai district, Hai Phong city It has

a depth of 16 meters in front of the wharf, a turning basin that is 660 meters wide, and

a channel depth of 14 meters (excluding tides)

In the first phase, the port invested in two container wharves totaling 750 meters

in length, each capable of taking container ships with a capacity of 14,000 TEUs and general cargo ships with a deadweight of 160,000 DWT The pier and barge wharf are

150 meters long and can receive ships and barges carrying containers up to 160 TEUs HICT now operates over 12 international container shipping routes linking Hai Phong

to markets in Asia, North America, and India, with a throughput of over 1.3 million TEUs annually

According to the revised draft of Vietnam's Seaport Development Plan, the number of container wharves would increase to 5-6 wharves by 2025, including two general wharves By 2030, there will be 10-12 container wharves ranging in length from 4,200 to 5,100 meters, as well as three general wharves totaling 1,000 meters that can accommodate container ships up to 12,000 TEUs and general cargo ships up to 100,000 DWT

Faced with the new trend of global connectivity and integration, as well as increasingly intense international competition, the Vietnamese seaport system requires management capabilities to develop regional scale, a vision for long-term efficiency and effectiveness, a broad scope, synchronized connectivity, and faster and more sustainable development

Modernize port operations through digital transformation

Northern Hai Phong city aims to become a major seaport city by 2030 under its master plan for the 2021-2030 period, with a vision to 2050 that has been authorized by the government The city will also work to lead the country in terms of modernization, industry, and digital transformation It seeks to become a growth engine for the northern area and the country as a whole, to construct comprehensive and contemporary transportation infrastructure, and to become a modern sea-based economic hub on an international scale, with a concentration on seaport services, logistics, and tourism The strategy also aims to develop Hai Phong into an international link center with sophisticated logistics services

The city is shifting its growth model to promote green growth, a circular economy centered on science and technology, digital and technical applications, and green and sustainable infrastructure development Citizens shall have access to high- quality social services, a sustainable social welfare system, and diversified and competent social support services that respond quickly to the needs of vulnerable people.Hai Phong's new master plan prioritizes essential areas that drive the city's economic growth, such as electronics and information technology, ports and logistics, and commerce The objective is for these three industries to contribute 55-60 percent of the city's added value by 2030

The city promotes sectors with promising growth prospects, such as the digital economy, real estate, financial services, healthcare services, and high-quality education and training, while maintaining reasonable, efficient, and sustainable development in

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sectors that capitalize on the city's traditional strengths, such as machinery and equipment manufacturing, plastics and rubber processing, and shipbuilding

2.2 Performance of Hai Phong Ports (in 5 years)

2.2.1, Executability of planning projects approved by the competent state authority to develop seaport system:

(1) Project to operate international container terminals in the Lach Huyen port area Overview: The Lach Huyen International Port was initiated in 2013 as part of Vietnam's Seaport Development Plan for 2020 It serves as an extension of Hai Phong Port, designed to accommodate large container ships, enabling direct exports from northern Vietnam to markets in the United States and Europe without relying on transshipment ports in Singapore or Hong Kong Since 2018, the Tan Cang Hai Phong International Container Terminal Co., Ltd (TC-HICT), the largest deep-water container port in northern Vietnam, has been operating two initial berths (berths No 1 and No 2, with a total length of 750 meters) with a throughput capacity of approximately 1.5 million TEUs per year (Viet Hung, 2024) With its two initial berths, Lach Huyen Port 1s currently operating at an average capacity of 140,000 TEUs per month, and this figure continues to grow In May 2024, it reached a record of nearly 150,000 TEUs (quantri, 2024) With these figures, Lach Huyen Port has been prioritized for investment due to its development potential and the various benefits it can bring to Vietnam's maritime industry, economy, and tourism

With its inherent potential, Lach Huyen Deep-Water Port is considered a rare asset due to its strategic location and ability to accommodate large vessels According

to the current master plan (Decision No 2973/2014 by the Ministry of Transport), during the 2021-2025 period, Lach Huyen will have nine berths Saigon Newport Corporation is the investor for berths No 1 and 2 in the Lach Huyen port area, with a total investment of over VND 7,000 billion, which began operations in 2018 Four additional berths have also been approved for development in the next four years, as follows:

Berth No 3 and 4:

Approval: Investment approved in November 2019

Investor: Hai Phong Port JSC, a subsidiary of Vietnam Maritime Corporation

(VIMC)

Investment amount: Nearly VND 7,000 billion

Specifications: 750m total length (350m per berth) and a 250m barge berth capable of handling ships up to 100,000 DWT (equivalent to 8,000 TEUs); designed to accommodate cargo throughput of approximately 1.1 million TEUs per year

Progress: As of August 2024, the project is 75% complete Notably, the construction of two piers was completed in May 2024, three months ahead of schedule Phase | of the project is expected to be completed by Q1 2025

Berth No 5 and 6:

Approval: Investment approved in March 2021

Investor: Hateco Group JSC

Investment amount: Total project cost is VND 6,425.2 billion, with VND 6,072.9 billion allocated for Phase 1 (2020-2025) and VND 352.2 billion for Phase 2 (2030 and beyond)

Specifications: The two berths cover approximately 47 hectares, with a total length of 750m (375m per berth), capable of handling container ships up to 100,000 DWT (8,000 TEUs) and a barge berth for vessels carrying up to 48 TEUs

Progress: By September 2024, 78% of the construction was completed Phase 1

of berths No 5 and 6 is set for trial operation in December 2024, with full operation targeted for February 2025

Berth No 7 & 8:

Approval: Investment approved in 2023

Investor: Saigon Newport Corporation (SNC)

Investment amount: The total investment capital of the project is approximately 12,792.637 billion VND, including about 1,918.896 billion VND contributed by the investor and around 10,873.741 billion VND raised from other sources

Specifications: With a total length of 900 meters, the throughput capacity reaches approximately 1.5 million TEUs per year

Progress: Construction procedures are being implemented and will be carried out from 2023 to 2027

There is no information yet on the construction of berths no 9 and 10, but some investors, such as Vietnam Container Corporation (Viconship) and other potential investors, have already expressed interest in one of these projects

(2) The project to relocate Hoang Dieu Port

Overview: Hoang Dieu Port — Hat Phong is located along the Cam River and was built by the French in 1874 It is one of three ports under Hai Phong Port Joint Stock Company and features a railway system seamlessly connected to the national railway network (Hai Phong — Hanoi — Viet Tri — Lao Cai) The port consists of 11 berths with a total length of 1,717 meters, a warehouse area of 31,320 m’, a cargo yard area of 163,000 m?, and a system of auxiliary facilities Hoang Dieu Port (under Hai Phong Port Joint Stock Company) primarily handles bulk cargo serving the production needs of northern provinces and cities Over 150 years, it has accommodated ships of

up to 50,000 tons with reduced load, boasting a capacity of 8-10 million tons per year However, according to the general construction plan for Hai Phong City by 2025, with

a vision toward 2050, in terms of urban spatial development orientation, the land of the ports along the Cam River, including Hoang Dieu Port, will be relocated to make way for the development of urban functional areas

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Approval: The project was approved in July 2016 according to Decision no 2367/QD-BGTVT

Investor: The funding sources coming from the central and municipal budgets Investment amount: The Hoang Dieu Port relocation project is a component of the Nguyen Trai Bridge project, with a total adjusted investment of over 6,331.6 billion VND, divided into two component projects Component project 1, which involves construction, has a total investment of over 4,416 billion VND, while component project

2, which involves land acquisition, compensation, and support for site clearance, has a total investment of over 1,915 billion VND

Progress: Currently, the berths at Hoang Dieu Port have ceased operations to facilitate the urgent relocation for the Nguyen Trai Bridge construction project over the Cam River and urbanization efforts According to Ngo Quyen District, the District People’s Committee has issued a plan to reclaim land from the Hoang Dieu Port area, covering over 304,074 m2 The District People’s Committee has also notified shipping companies to relocate the remaining cargo stored at the port By September 2024, Hoang Dieu Port had handed over the areas of piers 1, 2, and 3, along with part of the warehouses and yards, to facilitate the construction of Nguyen Trai Bridge The relocation is expected to be fully completed by 2025

Conclusion: The two projects are being urgently implemented with the aim of continuing to support the socio-economic development of the entire country, enhancing international transshipment capabilities, and improving and expanding the scale of the international gateway port in Hai Phong This further affirms Hai Phong's position as one of the most vibrant ports in Vietnam

2.2.2 Cargo throughout at sea ports tonnage capacity of vessels received at sea port Due to issues related to time and distance, our group has not yet found accurate updated data on the cargo throughput at Hai Phong port in 2024 Therefore, we will analyze data from 2018 to 2023

The cargo throughput at Hai Phong Port in 5 years from 2018 to 2023

Table 1 Statistics on cargo throughput at Hai Phong Port from 2018 to 2023