Ho Chi Minh City targets global competitiveness with strategic logistics centres

According to the announcement on September 12, as Vietnam's economic engine, Ho Chi Minh City is prioritising projects that embrace advanced technologies, digital transformation, green energy, and renewable energy solutions.

Looking ahead to 2045, the city envisions logistics as a cornerstone of its economy, generating high added value with a competitive edge on the global stage. At that point, officials anticipate Ho Chi Minh City will emerge as a logistics hub for both Asia and the world.

The Cat Lai logistics centre in Thu Duc city is set to play a central role in international trade, receiving goods from provinces including Dong Nai, Binh Duong, and the Mekong Delta.

The project will be executed in two phases: the first, in Thanh My Loi ward, will cover 60-100 hectares and handle 3.1 to 3.5 million TEUs annually, while the second phase, in Phu Huu ward, will add 26ha with a capacity of 800,000TEUs.

The Linh Trung logistics centre, also in Thu Duc city, will span 40-50ha and function as a strategic import-export hub, supporting goods from key industrial zones across the region. This project will also integrate extended air cargo services to enhance the distribution of export-import goods via air transport.

In Long Binh, a 50-ha logistics centre will link directly with Cai Mep Port and other regional ports, handling 750,000 to 800,000TEUs annually and serving as a key transhipment point for industrial zones (IZs) in Dong Nai, Binh Duong, and the Central Highlands.

To bolster domestic distribution, particularly for agricultural and cold chain products from the Mekong Delta, the Tan Kien logistics centre in Binh Chanh district will span 60ha, processing 500,000TEUs per year. Meanwhile, the Cu Chi logistics centre, covering 10-15ha, will focus on goods from northern Ho Chi Minh City IZs and nearby provinces, with an expected capacity of up to 319,770TEUs annually.

The high-tech park inland port and logistics centre in Thu Duc city will focus on goods from the city's tech zones, covering 5-6ha and processing 60,000TEUs annually, with an emphasis on extended air cargo services.

Looking beyond 2030, the city plans to launch the Tan Hiep logistics centre in Hoc Mon district. Covering 150ha, it will cater to goods from northern areas of the city and nearby provinces like Long An and Tay Ninh, with a clearance capacity of 1.5 million to 1.6 million TEUs annually.

Ho Chi Minh City currently leads the country in the Provincial Logistics Competitiveness Index, as reported by the Vietnam Logistics Service Business Association, the Vietnam Logistics Research and Development Institute, and Dream Incubator.

The city is home to approximately 9,600 logistics companies, accounting for 36.7 per cent of the nation's total. Tan Son Nhat International Airport, the country’s busiest, recorded 260,000 flights and 42 million passengers in 2023, surpassing its designed capacity by half.

In the first eight months of 2024, Ho Chi Minh City's logistics revenue surged 37.5 per cent on-year, with freight transport rising 12.3 per cent and warehousing and transport support services up nearly 54 per cent, according to Ho Chi Minh City Statistics Office.

The city has set a 7.5-8 per cent economic growth target for this year and plans to accelerate public investment and consumer services in the second half to meet that goal.

By 2030, the logistics sector is expected to contribute over 8.5 per cent to the city’s regional GDP, with annual revenue growth of 15-20 per cent for logistics firms. Outsourced logistics services are expected to account for 12-15 per cent of GDP, lifting Vietnam’s global Logistics Performance Index ranking to 45^th.

International Cargo Logistics opens office in Ho Chi Minh City International Cargo Logistics Ltd (ICL), announced on September 9 that it has opened a new office in Ho Chi Minh City as a continuation of its global growth plan.