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Containerisation in the ports of Vietnam
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Containerisation in the ports of Vietnam,Nguyen Giang Quynh,Professor Lu Zi Ai ,This paper examines some of the contemporary features of containerisation at the ports of Vietnam. Ports are having to adjust to a wide range of forces, both local and global. Enha
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Containerisation in the ports of Vietnam
Nguyen Giang Quynh,Lu Zi’ai,Chen Wei
Department of Traffic and Transportation of Hohai University,Nanjing (210098)
E-mail:nguyengiangquynh1982@yahoo.com
Abstract
This paper examines some of the contemporary features of containerisation at the ports of Vietnam.
Ports are having to adjust to a wide range of forces, both local and global. Enhanced competition
between ports is shaping developments. Ports have to keep pace with technological developments and
thus there are great pressures to expand their facilities. In addition, links with hinterland markets have
to be improved and extended. The paper demonstrates that these pressures are being felt throughout the
port system, and through a series of individual and regional examples the dynamism of the Vietnamese
port system is exposed.
Keywords:containerisation;ports;Vietnam
1. Introduction
Containerisation requires specialised port facilities and terminals. In Vietnam there are ports of all sizes,
from mega-hubs to single quays with one berth. They each perform particular functions, and although
the differences between them are great, they may be considered as a system. The largest ports are
linked in Asian area networks, and they in turn are linked with the smallest through feedering services.
Nevertheless, they each possess their own unique problems.
The port system has evolved rapidly and differentially. There have been significant shifts of status [1]
[2]. This paper seeks to explain the present pattern of port container activity (see Figure 1 below) [4]
by exploring a number of factors that have shaped the system. In some cases local elements have
determined developments, but global forces, including the decisions made by ship-owners (Portcoast
Consultant Corporation) [5], are important everywhere. The result is a very competitive situation, with
critical decisions being made concerning the selection of hubs and feeder ports (Investment and Trade
Promotion Center) [3].
2. Ports in Vietnam Stunting amid Economic Development
2.1 Current Seaports in Vietnam
Vietnam’s impressive and consistent growth over the last several years (second in Asia to China) as
made Vietnam more and more visible on the global map, especially for those multinational
corporations looking for an
outsourcing and factory-
relocating destination.
Vietnam has achieved this
success through hard work
and the willingness of the
government to respond to
investor concerns. However,
there exists a hindrance that is
not discussed much in the
daily news yet has hampered
both foreign investors and
Vietnamese companies with
international market ambition:
the ports.
Along her 3,260 km-long
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coastline from the North to the South, Vietnam has a total of 114 seaports, 14 of which are relatively
large and named as the keys to economic development. Basing oneself on the location, they can be
divided into 8 port groups and marked from 1 to 8 (see Figure 1 below) [6]. Total length of berths is 35
km. Most ports are relatively small with obsolete facilities and poor supporting services. Take the three
largest ports of Vietnam – Saigon port (south), Hai Phong port (north), and Da Nang port (central) –
and compare them to some major seaports of Thailand and Malaysia (see graph 1 above) [3]. When
juxtaposed with them, the three main ports of Vietnam seem diminutive in terms of maximum vessel
size allowed and storage capacity in despite the roughly similar size of berth lengths (the figures are for
container terminals only; for Thailand, it is 1.2m DWT for maximum vessel size and 4m TEUs storage
capacity).[6]
Figure 1 Port Groups in Vietnam
Source: Ministry of Transport of Vietnam Website [6]
The limited size of Vietnamese ports entails transportation of goods from Vietnam to major
international market such as USA and the European Union to be transshipped at larger ports, including
Hong Kong and Singapore. Transshipment means additional handling of shipments, which is more
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