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Spotlight on Vietnam: Long An International Port
By Mateo Wiegold, Editorial Content Manager
Vietnam stands out as the top performer in Southeast Asia and is still projected to grow the fastest in the region despite domestic and global headwinds. Its large and competitive labour force makes the country an attractive choice for manufacturers looking to potentially relocate without disturbing their supply chains. This development has become noticeable in recent years across several consumer goods: According to MDS Transmodal, furniture related exports have increased from 8% in 2016 to 17% in 2022. During the same period, footwear increased from 12% to 16% while travel goods and handbags exports grew from 6% to 10%. The significant growth in exports began in 2014, when the country started to invest significantly in its maritime and manufacturing sector.
As China faces a decrease in manufacturing orders particularly from the US and Europe, after decades of being considered as the ‘factory of the world”, countries like Vietnam, Malaysia, Bangladesh, India, and Taiwan, have been gaining momentum as part of a new diversified manufacturing network.
It should come as no surprise that these countries, such as Vietnam, are prioritizing heavier infrastructure investment for maritime and logistics in the hope of enlarging its role in global supply chains. Dong Tam Group has spotted the opportunity way ahead of the growth trajectory that Vietnam is currently enjoying and invested in the development of Long An International Port in Long An Province, which is strategically situated in Southern Vietnam. Long An Province is playing a key role among the economic drivers for the country, with an 8.43% GDPR growth in 2022 compared to total Vietnam GDP growth of 8.02%. In fact, the province has already attracted numerous global brands to set up manufacturing centres (such as Coca Cola) and investment due to its prime location and strong support from local and national governments, translating to 22 industrial parks occupying 2.900 hectares, which will expand to a total of 37 industrial parks occupying 12,000 hectares in the near future.
From fertilizers to retail and manufactured goods, Long An International Port will be more than a place to load and offload cargo – it will be a trade facilitator domestically and in Southeast Asia. Capitalizing on its strategic location at the doorstep of the Mekong Delta Region and looking to help reduce congestion for other ports in in Southern Vietnam, Long An International Port is developing 2 new container berths that will enable the handling of over 500,000 TEUs annually by the second half of 2023. As the key project in the master development plan of Dong Tam Group, the overall project will develop an ecosystem where the port will connect to the industrial park, the industrial services area and the urban area, working together to play a pivotal role in facilitating trade between the Mekong Delta Region, the rest of Vietnam, and other countries. The services that businesses can expect include
multimodal transport, among others, making it a cost-effective alternative for shipping lines and cargo owners while fostering local production and observing international sustainability standards. Such a plethora of options proves how this dynamic port is up to date with industry trends that enable end-to-end logistics solutions, making this port – and the wider plan around it – the one to watch in this region.
Gone are the days when ports were considered as just places for vessels to arrive, load and offload cargo and leave. Following global logistics integration trends and with open doors for potential partners and businesses, Long An International Port proses great potential to accelerate the economic development of the region through its unique flexibility to adapt according to market and customer needs.
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