Coastal IZs provide ideal base for logistics firms

After receiving special investment priority by the prime minister, Lach Huyen is planned to hold eight berths eventually. Two berths have been in operation since 2018, with a throughput capacity (TC) of about 1.5 million TEUs per year, with a further four berths currently under construction.

Berths seven and eight are at the planning stage and will eventually bring the TC to 6 million TEUs per year.

The port has become a convenient transit point for goods traded between northern Vietnam and the world. According to Tan Cang Haiphong International Container Terminal Co., Ltd., Lach Huyen port receives 15 regular service routes per week, including seven trans-Pacific service routes going directly to the US and three service routes to India.

DEEP C Haiphong III IZ, invested by DEEP C Industrial Zones, is located near the port and has since become of special interest to investors due to the ease of transporting goods while the seaport has been constructed to specifically cater to the needs of manufacturing firms based there.

Bruno Jaspaert, general director of DEEP C Industrial Zones, said, "Thanks to these advantages, the IZ is perfect for projects producing oversized equipment such as wind turbines and large electronic products, and is particularily suitable for projects manufacturing large-scale components."

Le Trung Kien, head of Haiphong Economic Zone Authority, believes the synergistic development of the IZ and deepwater port has maximised the value of both, and helped promote Haiphong as a destination for industrial and logistics development.

"Well-prepared investors can certainly take full advantage of the proximity of the IZ, and other nearby industrial areas, to the Lach Huyen seaport," said Kien.

The government has established 19 coastal economic zones (EZs), of which 18 are in operation. These EZs have pulled in over 550 foreign-led projects valued at more than $54 billion, and more than 1,600 domestic projects worth over $57 million.

Dinh Vu EZ in Haiphong city has taken in nearly $11 billion, accounting for two thirds of total overseas funding in the city, through renowned investors such as LG, Pegatron, Bridgestone, Nipro Pharma, and Fuji Xerox, to name but a few.

IZs built near seaports or located within coastal EZs have succeeded by leveraging Vietnam's long coastline to help transport huge volumes of goods over large distances at lower cost.

It is expected that by 2030, Haiphong's logistics sector will cover around 1,700-2,000ha and 2,200-2,500ha by 2040, including international and regional logistics centres in the Dinh Vu-Cat Hai area, specialised logistics centres in the city, and support centres associated within the main trade hubs.

According to the Haiphong People's Committee, the local logistics sector is currently growing at around 20 to 23 per cent per year and contributing 13 to 15 per cent to the regional GDP, twice as high as growth overall.

Vietnamese government committed to boosting logistics infrastructure At the Vietnam Logistics Summit 2023 co-hosted by SPL Vietnam and VIR, representatives from the Vietnamese government reaffirmed the country's steadfast dedication to enhancing the nation's logistics infrastructure.

Phu Yen takes on logistics infrastructure investment With the development of Vung Ro and Bai Goc seaports, Phu Yen province is determined to locate a logistics centre in Dong Hoa town that can connect to Tuy Hoa airport.

DEEP C Industrial Zones remain a reliable investment location The DEEP C Industrial Zones (IZ) complex – based in Haiphong city and Quang Ninh province – initiated 21 new projects last year with a total capital value of $970 million, including those for vehicle manufacturing and component production for the renewable energy industry.