IFC supports development of Vinh Phuc ICD Logistics Centre

A graphic design of the Vinh Phuc ICD Logistics Centre (Source: vietnamnet.vn)

Hanoi – Vietnam’s T&T Group and Singapore’s YCH Group have inked a deal with the International Finance Corporation (IFC) on project development to attract capital funding for their inland container depot (ICD) logistics centre in northern Vinh Phuc province.

Under this agreement, IFC - a member of the World Bank Group, exclusively entrusted by T&T and YCH, will arrange a funding package that can be worth up to 75 percent of the total investment in the Vinh Phuc ICD Logistics Centre, the first super-port project of the ASEAN Smart Logistics Network (ASLN). This package may include a loan from IFC and others that IFC mobilises from other sources.

Do Quang Hien, Chairman and General Director of T&T Group, said the cooperation with IFC will help his firm and YCH access international financial sources and make use of valuable consultancy and experience of one of the world’s leading financial organisations to speed up the project.

He noted that once completed, the centre will help reduce commercial cost, fuel trade growth, and develop Vietnam’s logistics sector to the world level.

Robert Yap, Executive Chairman of YCH Group, said the partnership with IFC will help mobilise financial solutions for the Vinh Phuc ICD Logistics Centre to keep up with the ASLN development.

Meanwhile, IFC’s participation in this project right from the design stage will help ensure this project meet the highest international standards on the environment, society, governance, and climate friendliness so as to attract international funding, according to Alfonso Garcia Mora, IFC Regional Vice President for Asia and Pacific.

He added the project will not only help improve the local logistics sector but also become a role model for application in other markets in the region, thus helping improve the logistics capacity in ASEAN.

T&T and YCH started work on the Vinh Phuc centre on December 23. The project covers over 83ha in Huong Canh township and Son Loi commune of Binh Xuyen district. Featuring functions of both a distribution centre and an ICD, it has a total investment of some 200 million USD and is designed to handle about 530,000 TEUs per year.