Province told to pull its socks up

illustration photo - source:congan.com.vn

Southern seaport hub of Ba Ria Vung Tau is urged to ramp up efforts to become a regional deepwater transit port.

Speaking at “Logistics and Maritime Services Development in Vietnam” forum in Ba Ria Vung Tau province last week, Jan Tomczyk, senior expert at Multilateral Trade Assistance Project III said “a whole of government approach was needed” to put the province on the map.

And this was not just true for seaport centres like Ba Ria Vung Tau province, but for the whole country, said Tomczyk.

“[Vietnam] should systematically identify and solve physical and non-physical obstacles and “behind the border” issues which stem from lack of harmonisation, complex and non transparent requirements and market access failure. These barriers which will hinder national logistics companies being part of the global supply chain,” said the expert.

He added that enhancing transparency of government rules, efficiency documentation and customs clearing as well as the predictable application of methods and rules would be crucial in future

Ho Van Nien, deputy chairperson of Ba Ria Vung Tau People’s Council said there were both “visible and invisible” challenges.

Nien said: “I think the most worrisome is the invisible challenges. The infrastructure for transporting containers and goods – at least in terms of heavy weight and long distance – and also for the flow of goods, has become weak and outdated. But this matter is beyond the management responsibilities of Ba Ria Vung Tau’s administration.”

The official added that logistics operations needed an assembly line but he recognised there had been poor interconnection between the government, businesses and customers. This had lead to impediments in the implementation and management of the entire production-consumer chain, he said.

According to the province’s figures, Ba Ria Vung Tau is now home to 21 terminals, mostly in the Thi Vai-Cai Mep area.

These terminals have a total handling capacity of around 45 million tonnes per year.

There are three international container terminals accessible to over 50,000 dead weight tonnage ships directly heading to foreign markets.

Over 60 million tonnes of goods are expected to pass through the province’s ports by 2015 and this figure is expected to double by 2020.

The province now houses over 5,000 businesses active across in the whole spectrum of the economy including petroleum, electrical, mechanical, iron and steel processing, seaport, seafood and tourism services.

It has so far given shelter to 280 foreign direct investment projects worth over $27 billion in total registered capital, including 19 port projects valued at $2.3 billion. In addition, there are 341 domestic investment projects capitalised at VND135.9 trillion ($6.56 billion), including 32 port projects worth around VND55 billion ($2.65 million).

Ba Ria Vung Tau province is aiming to become a modern seaport and industrial hub in the south by 2015.

The value of province’s total industrial production in 2010 was double that of 2005 level while the value stemming from trade, services and export almost tripled over the same period. There are now 14 industrial zones and 30 industrial clusters covering over 11,000 hectares in the province.

During a visit to the province last year Prime Minister Nguyen Tan Dung emphasised the need to turn Ba Ria Vung Tau into a regional deepwater transit port in the next five years.

He said: “Ba Ria Vung Tau should cooperate with ministries and relevant agencies to upgrade its port facilities and ensure it is easily accessible and connected to other infrastructure projects.

“The coastal southern province should create major industrial products and improve its hi-tech industries to become competitive in both domestic and international markets.”