FROM OUR CORRESPONDENTVIETNAM


Powering up in Vietnam


Sam Whelan, our regional correspondent in


SOUTHEAST ASIA


Vietnam’s high-growth economy is making headlines with its booming manufacturing sector, strong export growth, and an influx of foreign direct investment (FDI). We take a look at its project forwarding sector, which faces some problems.


powerhouse. Its USD193 billion economy averaged 5.84 percent annual growth between 2011 and 2015; 2016 will be stronger, with the government forecasting an expansion of around 6.4 percent. Growth has been heavily dependent on exports, which jumped from USD72 billion in 2010 to USD162 billion in 2015.


W


Manufacturing output More positive statistics include an 11 percent rise in manufacturing output between January and September 2016, a foreign direct investment (FDI) increase of 12 percent for the same period, reaching USD11 billion, and a 9 percent rise in exports. Vietnam’s ports have seen consistent 10-15 percent jumps in throughput every year for the past five years. Free trade deals with the EU, South


Korea and more recently the Eurasian Economic Union are further supporting export growth. On the other hand, predictions of a 10 percent GDP bump from membership of the likely defunct Trans Pacific Partnership seem doubtful. The logistics sector has been at the


forefront this strong trade performance, racking up 16-20 percent annual growth. Vietnam currently ranks fourth within the Association of Southeast Asian Nations


94 January/February 2017 www.heavyliftpfi.com


ith a population approaching 95 million and a young, skilled workforce, Vietnam has the potential to become Asia’s next economic


(ASEAN) region in the World Bank’s Logistics Performance Index, after Singapore, Malaysia and Thailand. Industry stakeholders are frustrated with


Vietnam’s logistics development, however. The transport department director recently said weak logistics activities were hampering Vietnam’s trade competitiveness, citing disproportionately high logistics costs resulting from poor infrastructure and a lack of modern information systems. So far most infrastructure improvements


have been geared towards improving retail cargo flows out of the country via the construction of modern container ports and air cargo terminals, such as the new cargo terminal at Hanoi International airport. From a project cargo perspective,


Vietnam’s infrastructure lags behind its


more developed north Asian neighbours. “Road lanes are not wide enough and


bridges are not strong enough to withstand heavy cargoes – the maximum package weight that can be transported by trucks is probably 100 tonnes – and low electricity wires slow down cargo movement,” said Duong Truong, chartering manager for Project Cargo Handling Vietnam (PCHV). Truong lamented the lack of safety


awareness, efficiency and professionalism within the industry, and called for investments to improve both infrastructure and skill levels. “We need capital for dredging waterways,


investments in training to improve working efficiency, and new technologies to make ports operate more effectively and professionally; many ports do not update vessel schedules online.”


Boat transport PCHV loaded and transported a luxury cruise boat from Ho Chi Minh City to Yangon. The 23-cabin vessel was towed from its yard and floated on the semi-submersible vessel Rolldock Storm, which had arrived in Vietnam having delivered a Russian built submarine at the Cam Ranh Bay naval hub . Heavy units like these are not typical. According to Henry Le, business


The semi-submersible Rolldock


Storm loaded and transported a luxury cruise boat from Ho Chi Minh City to Yangon for PCHV.


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