EU investors eye $1 billion logistics hub in Vietnam

September 21, 2020 | 18:52

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EU investors are interested in developing a logistics complex worth nearly $1 billion in Vietnam’s southern province of Ba Ria-Vung Tau to tap into growing trade demands on the back of the EU-Vietnam Free Trade Agreement (EVFTA).

eu investors eye 1 billion logistics hub in vietnam

Prime Minister Nguyen Xuan Phuc met with EU investors on September 16

At a recent meeting on September 16 with Prime Minister Nguyen Xuan Phuc, Elsbeth Akkerman, the Netherlands' Ambassador to Vietnam, said that the EVFTA will be a driving force for the development of bilateral ties, creating a foundation for investment cooperation in logistics projects. “The government of the Netherlands supports this project, with the Dutch Development Bank pledging to contribute 10 per cent of the project’s investment capital.”

Also at the meeting, Belgian Ambassador to Vietnam Paul Jansen said that Belgium also supports this project, hoping to strengthen trade between Vietnam and the EU in general, and between Belgium and the Netherlands and Vietnam in particular. The ambassador elaborated that a Belgian investment corporation will contribute capital to the project.

According to potential investors, this project can accommodate big container vessels to convey Vietnamese goods to the world. In addition, investors will also join activities to boost inland waterway transport, thus enabling the transportation of goods and farm produce from the Mekong Delta region to the Cai Mep Ha area and then to the world.

The investors expressed their hope that the project will be soon approved, and confirmed that they will develop it on schedule, ensuring quality and green transportation for sustainable development.

Chairing the meeting, the PM affirmed that the Vietnamese government always creates favourable conditions for foreign investors, especially those from the EU who have strong capacity and high-tech expertise.

The government leader assigned Ba Ria-Vung Tau to work with the Ministry of Planning and Investment on the investment proposal and then reports to him about the related issues.

The leader of the province said that it is ready to provide cleared land for the project.

Vietnam is the EU’s second-largest trade partner in ASEAN after Singapore, with trade in goods worth €45.5 billion ($53.9 billion) in 2019. The FTA is projected to help increase Vietnam’s GDP by 4.6 per cent and its exports to the EU by 42.7 per cent by 2025.

Additionally, the European Commission has forecast the EU’s GDP to increase by $29.5 billion by 2035, thus spurring demand for maritime transportation services.