Vietnam Boosts Finance, Logistics with $10B Maritime Hub, FTZs
Vietnam is boosting its financial and logistics sectors with ambitious projects. The country is constructing an international financial center in Ho Chi Minh City (HCMC) and Danang. Meanwhile, HCMC has proposed establishing four free trade zones, and private companies have plans for a $10 billion international maritime hub via a public-private partnership.
The proposed maritime hub, championed by Gemadept's Deputy CEO Pham Quoc Long, is expected to generate over 20,000 jobs once operational. The most suitable location is the greater HCMC region, including the merged provinces of Binh Duong and Ba Ria - Vung Tau, which would integrate port services with a free trade zone and financial hub.
Currently, the Cai Mep-Can Gio area is the most viable location for the maritime hub, handling 30% of the nation's cargo and over 70% of container cargo. The proposed investment for the hub is about $10 billion, with $5 billion allocated for seaport infrastructure, $4 billion for supporting infrastructure, and $1 billion for soft infrastructure.
Vietnam's seaport system is the second-largest in terms of throughput and has the highest growth rate in Southeast Asia. However, the country loses about $1 billion annually due to its fragmented port system and low loading and unloading prices. To tackle this, Vietnam is considering developing inland waterway transport to reduce logistics costs, which currently account for 16-17% of GDP.
Vietnam's strategic location as a bridge for the Indo-Pacific Economic Corridor (IPEC) and its extensive free trade agreements make these projects crucial for boosting the country's economy. The proposed maritime hub and free trade zones are expected to enhance Vietnam's competitiveness in the global market.
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