Vietnam’s government is considering investing up to US$800 million to add more inland container depots (ICDs) in the country by 2030.
According to the 2021-2030 ICD Development Plan that the Ministry of Transport submitted to Prime Minister Pham Minh Chinh, ICD development will be focused on major ports such as Hai Phong in the country’s north and Cai Mep-Thi Vai in the south.
Vietnam Maritime Administration noted that of Vietnam’s current 10 ICDs, all but one are in the southern areas. Out of the 4.2 million TEUs processed by the ICDs annually, 3.65 million TEUs is handled by the southern region, with the sole ICD in the north accounting for just around 450,000 TEUs. To resolve this imbalance, further development of ICDs is needed. To meet the costs, the government is urged to consider public-private partnerships.
The transport ministry advises enlarging the ICDs’ aggregate annual capacity to 6 million to 8.7 million TEU by 2025. Beyond that, up till 2030, the capacity can be expanded by another 25% to 35%.
Vietnam’s inclination towards upgrading its container infrastructure is another sign of Asia becoming the focus of global tradeflows, after being a manufacturing region from the 1990s to the early 2000s.
Today, Asian economies have become major consumers, and nearly 60% of Asia’s exports are intra-region.
In 2022, a Singapore-based logistics firm, YCH Group, and Vietnamese conglomerate T&T Group, a Vietnamese conglomerate, obtained financing from a World Bank unit, International Finance Corporation, to develop a US$300 million ICD in Vinh Phuc, in northern Vietnam. The facility, known as Vietnam SuperPort, is expected to open in 2024.