ESCAP Project NATIONAL STRATEGIES FOR SMART PORT DEVELOPMENT POLICIES IN ASIA AND THE PACIFIC VIETNAM MARITIME ADMINISTRATION Dr. Trinh The Cuong Overview of logistics and ports performance trigger the NEED for change Issues and challenges Conclusion I. OVERVIEW OF VIET NAM An overview of Vietnam maritime industry and … the NEED for improving LOGISTICS SECTOR NATIONAL FLEET • 1300 domestic logistics company involve in maritime sector (mostly 1PM ,2PM some 3 • 1507 vessels (4.65 million GT, 7.55 DWT) PM) • Average age: 16.3 ( world 20.8) • 08 logistics center and 21 ICD nationally • Ranked 4th in Asean and 29th globally • Logistic cost account for approximately 20 • Able to handled domestic transport and around 10% trade % of GDP Logistic market share volume due to restriction in size and technical requirements domestic PORT PERFORMANCE foreign • 286 ports with total 8.22 km in length 550 million tons in capacity company • Constantly growth in port sector Container: 19.5 m. TEU ( increased 6% compared to 2018) Passenger: 7.5 millions ( incr. 22% compared 2018) • Average time in port for cont ship: 1.03 days (global average 0.69 DHL, Nippon UNCTAD) Express… • Over-capacity of port system 18% and congestion in ports Cargo throuthput 2012- 2019 800 654 700 654 530 650 Port capacity 600 459 519 373 427 600 550 400 295 328 550 500 throughput 200 450 2019 0 Over-capacity in port and COVID 2012 2013 2014 2015 2016 2017 2018 2019 system II. OVERVIEW OF VIET NAM SEAPORT SYSTEM CURRENT STAGE OF SEA PORT SYSTEM TOTAL: 32 PORTS, 272 BERTHS, 550 MIL.TONS (CAPACITY) NORTHERN SEA PORT GROUP (Group 1) Quang Ninh Port 4 Ports; 65 Berths; 15Km; 145 Mil. Tons Hai Phong Port Nghi Son Port Nghe An Port THE NORTHERN CENTRAL SEA PORT GROUP (Group 2) Ha Tinh Port 3 Ports; 19 Berths; 70.8Mil.Tons Thua Thien Hue Port MID - CENTRAL SEA PORT GROUP (Group 3) Da Nang Port 6 Ports; 28 Berths; 33 Mil.Tons Quang Ngai Port SOUTHERN CENTRAL SEA PORT GROUP (Group 4) Quy Nhon Port 5 Port; 25 Berths; 35 Mil.Tons Khanh Hoa Port SOUTH EASTERN SEA PORT GROUP (Group 5) Ho Chi Minh Port 4 Ports; 99 Berths; 230 Mil.Tons Dong Nai Port Vung Tau Port Can Tho Port MEKONG DELTA SEA PORT GROUP (Group 6) 10 Ports; 36 Berths; 20.7 Mil.Tons CARGO VOLUME VIA SEA PORT SYSTEM 600.0 30.0% 524.7 11,8% 16,4% 500.0 25.0% 441.5 416.3 400.0 371.5 20.0% 326.3 300.0 287.3 15.0% 253.5 229.7 241.2 200.0 10.0% 126.6 100.0 73.3 5.0% 17.8 14.4 13.0 11.5 10.4 8.6 8.0 7.2 6.5 2.9 0.0 1.1 0.0% 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total (Mil.Ton) Container (Mil.Teu) Tot.Change (%) Cont.Change (%) SHARE OF GOODS IN 2018-2019 Total 524.7 Mil. Tons 18.5 , 4% 0.8 , 0% Group 1 164.2 , 141.1 , 211.6 , Group 2 210.9 , 31% 27% 40% Group 3 40% Group 4 171.2 , 33% Group 5 Group 6 60.0 , 29.2 , 6% 41.9 , 8% 11% EXPORT IMPORT DOMESTIC TRANSIT Total 17.8 Mil. TEUs 0.13 , 1% Group 1 5.03 , 28% Group 2 5.7, 32% 6.0, 34% Group 3 11.97 , Group 4 0.09 67% , 0% Group 5 6.1, 34% 0.49 Group 6 , 3% 0.13 , 1% EXPORT IMPORT DOMESTIC STASTUS OF OWNERSHIP IN VIETNAM 168 Join Stock Company 27 Join 41 State venture capital company VietNam seaport Sys. 4 State 11 ownership Private (ODA loan) company PORT CONGESTION 25 Biggest container port in the world Total length of 1.500m FACTS Container throughput at Cat Lai port causes congestion and traffic jam. Heavy traffic on Ha Noi High Way, Long Thanh – Dau Giay High Way towa rd Mai Chi Tho road. Cat Lai traffic jam Road Dong Van Cong toward C Eastern belt from District 9 to Cat Lai at Lai port, Ho Chi Minh City Port WHY SMARTPORT SYSTEM? 1. DEMANDS: - SHIPS IS BIGER AND BIGER - VOLUME OF CARGO – INCRESING 10%-15%/YEAR - PORT IS BIGER - CONNECTED PORT NETWORK - LOGISTICS 2. INVESTMENT: - PRIVATE INVESTMENT IS PARTICIPATED - POWER OF IT TO REDUCE THE COST 3. PORT CONGESTION 4. SMART – MEANS MORE TECHNOLOGY COMMING III. SMART PORT DEVELOPMENT PLAN MINISTRY OF TRANSPORT VIETNAM MARITIME ADMINISTRATION MASTER PLAN OF VIETNAM SEAPORT SYSTEM TO 2020, ORIENTAION TO 2030 NOVEMBER 2020 Decision 1037/QĐ-TTg dated 24th June 2014 approval of Vietnam Port system planning to 2020, a vision to Prime Minister 2030 Legal Basic Detailed plans for Seaport development plan in Ministry of different areas in 2016 (6 areas) Transport Decision 2027/QĐ-BGTVT Ministry of Transport dated 29th Oct 2 Latest 020 Approval of Project on Green port development Shortages Challenges in Vietnam’s Smart port development • Lack of detailed circulars for smart port development plan Challenges • Lack of awareness and experienced personnel •Lack of management and monitoring activities HOW WE MAY DEVELOP SMARTPORT 1 Operation 2 Sustainability 3 Safety and Security - E-port - Renewable energy - Higher technical - E-clearance formallity - Air quality (less standard for ship - Automation emission) - Proper enforcement - Noise pollution - Improve Port Reception Facility • Build national detail legal basis and an action plan WHATWHAT TO TO DODO NEXT?NEXT? • More budget on Smart port development • More attention from stakeholders for the role of smart port But we do need support International guidelines or instructions for smart port development plan Support in training personnel (conference, seminar..) IV. CONCLUSION IV. CONCLUSION 1. REVISED LAWS OF ROAD, RAIL, INLAND-WATERWAY AND MARITIME 2. REVISING MASTER PLAN OF TRANSPORT INCLUDED ROAD, RAIL, INLAND-WATER WAY AND MARITIME TO PORT SYSTEM 3. PROJECTS ON: ROAD, RAIL, INLAND-WATERWAY AND MARITIME TO PORTS, SUCH AS: CONNECTIVITY TO CATLAI BERTHS IN HOCHIMINH; 4. ADMINITRATIVE PROCEDURE IN PORT: E-PORT (ASIAN SINGLE WINDOW) MAINLY I N CUSTOM AND IMMIGRATION Ⅳ. Conclusion Conclusion . Expected ESCAP’s: • MAKING SMARTPORT MODEL PROJECT TO ASEAN COUNTRIES • PROVIDE EXPERTS AND DOCUMENT AS GUIDELINES .