Realizing the "dream" of Danang's logistics center

Building a Free Trade Zone: Realizing the "dream" of a logistics center in Da Nang

Converging many advantages in logistics, but only when the Central Government agreed to establish a Free Trade Zone, did the goal of becoming a logistics center of Da Nang City become clear.

The free trade zone associated with Lien Chieu port will create momentum for Da Nang's logistics industry (Photo: Hoang Anh)

Great motivation

Mr. Duong Tien Lam, Head of the representative office of the Vietnam Logistics Services Association, assessed that Da Nang's logistics industry is facing great opportunities, as Lien Chieu seaport is under construction and the Free Trade Zone is about to be formed.

According to Mr. Lam, when put into operation, Lien Chieu port will be very convenient to attract goods from the Central Highlands and the southern provinces of Laos, replacing Tien Sa port which currently has little room for development. In addition, many key transportation projects such as highways, coastal roads connecting Lien Chieu port, or upgrading traffic axes on the East-West Economic Corridor will be invested, creating a synchronous infrastructure for Da Nang's logistics.

“We are building deep ports and wide wharfs, but the important thing is where are the goods to meet the exploitation needs of the port? If we only rely on the current goods source from industrial parks in Da Nang or neighboring localities, there will not be much. Therefore, when the Free Trade Zone in Da Nang is established, goods circulating through the port will be more bustling. The Free Trade Zone will attract many large enterprises to Da Nang, thereby promoting related supporting activities, in which the logistics industry will develop very strongly,” Mr. Lam commented.

DANANG CALLS FOR INVESTMENT IN 10 LOGISTICS CENTER PROJECTS

  To realize logistics development goals, Da Nang calls for investment in 10 logistics center projects, including 1 regional logistics center, 1 specialized aviation logistics center and 8 provincial logistics centers.

In particular, Lien Chieu Port Logistics Center is a regional-level, class 1 center, with a scale of 30-35 hectares by 2023 and 65-70 hectares by 2050; Da Nang International Airport Logistics Center is a specialized aviation logistics center, providing aviation logistics services, with a scale of 4-5 hectares by 2030 and 8-10 hectares by 2050; Hoa Phuoc Logistics Center is a provincial-level center, with a scale of 5-7 hectares by 2030 and 10-15 hectares by 2050; Hoa Phu Logistics Center is a provincial-level center, with a scale of 3-5 hectares by 2030 and 5-8 hectares by 2050.

In addition, this list also includes the new Kim Lien Cargo Terminal Logistics Center, Da Nang High-Tech Park Logistics Center...

It can be seen that the Free Trade Zone associated with Lien Chieu Port is creating great attraction, as many large corporations in the world want to participate in investment.

The Lien Chieu Port Construction Investment Project has 2 components. Of which, the Lien Chieu Port Construction Investment Project - the shared infrastructure part with a total investment of 3,462 billion VND, is being accelerated to complete in 2025, and has so far completed 70% of the progress. The Lien Chieu Port Construction Investment Project - the investment calling part, according to preliminary calculations by Da Nang City, the investment cost is about 48,304 billion VND, including 8 container terminals (total anchorage length of 2,750 m for ships of 50,000 - 200,000 DWT), 6 general cargo terminals (total anchorage length of 1,550 m for ships of 50,000 - 100,000 DWT), wharfs for river-sea ships, and port rear.

Recently, the APM Terminal – Hateco consortium is the next investor to submit an expression of interest for the Lien Chieu Port Construction Investment Project. The APM Terminal – Hateco consortium commits, if selected as the project investor, to ensure the volume of transported goods, create a flow of goods to and from key locations, and turn Da Nang into an important freight transit center in the medium and long term. The consortium also commits to building Lien Chieu port into the first green port in Vietnam with green logistics services and maintaining the highest standards of governance, environmental and social responsibility.

In addition to the APM Terminal – Hateco joint venture, the Lien Chieu Port Construction Investment Project is also being “proposed” by two large corporations, Adani (India) and Sumitomo (Japan). This shows the attraction of the Project to the world’s major port industry players.

In addition, with the Free Trade Zone, Da Nang is also accelerating the process of formation. Resolution 136/2024/QH15 dated June 26, 2024 of the National Assembly has granted Da Nang outstanding preferential policies for strategic investors and strategic partners. In particular, in attracting investment, Da Nang will target strategic investors.

The priority project to attract strategic investors to Da Nang is to invest in building innovation centers, data centers, research and development (R&D) centers associated with training, etc., with an investment capital of VND 2,000 billion or more. In addition, it will invest in building and operating infrastructure for functional areas in the Da Nang Free Trade Zone, including the Trade - Service Zone with an investment capital of VND 3,000 billion or more; the logistics center associated with Lien Chieu seaport with an investment capital of VND 3,000 billion or more. In addition, it will invest in building and operating inland waterway tourism (with an investment capital of VND 8,000 billion or more); and invest in building the overall project of Lien Chieu seaport with an investment capital of VND 45,000 billion or more...

Regional logistics center

According to Associate Professor, Dr. Nguyen Chu Hoi, Permanent Vice President of the Vietnam Fisheries Association, with its favorable geographical location and natural conditions, Da Nang will develop into a major marine economic center of the country, an international-class marine urban area. The marine economic sectors that need to be prioritized for development in Da Nang are maritime economy, seaport services, maritime transport and logistics; tourism - marine services, seafood exploitation, aquaculture and processing; marine urban economy, etc.

“Da Nang is an important traffic hub, with full road, rail, sea and air traffic. This is a condition to promote its role as a gateway to the East-West Economic Corridor, an important port in the Central region, aiming to become an international gateway port; a foundation for building a logistics service supply chain, a logistics center of the region and ASEAN”, Associate Professor, Dr. Nguyen Chu Hoi affirmed.

The Central Executive Committee recently issued Conclusion No. 79-KL/TW of the Politburo on continuing to implement Resolution No. 43-NQ/TW of the 12th Politburo on building and developing Da Nang City until 2030, with a vision to 2045, in which it continues to affirm the construction of Da Nang to become a regional logistics center. With the important decisions of the Central Government and the positive movements of the Free Trade Zone associated with Lien Chieu seaport, Da Nang's logistics industry has many advantages for development.

Da Nang City has also developed a very detailed plan to develop the logistics industry. According to the Project on Logistics Services Development for the period 2021 - 2030, with a vision to 2050, Da Nang aims to have the logistics service industry contribute more than 11% to GRDP by 2030, the outsourcing rate will reach more than 40%, and logistics costs will be reduced to 13% of GRDP. Logistics centers in Da Nang meet about 55% of the logistics service demand for goods via seaports, 20% of goods via rail and air.

By 2050, the contribution of the logistics service industry to GRDP will reach more than 15%. Logistics centers in Da Nang will meet about 55% of the logistics service demand for goods via seaports, 40% of goods via rail and air.

Da Nang will implement a series of solutions to develop logistics services from seaports, airports and railways. In particular, logistics enterprises operating at Da Nang seaports are encouraged to provide full basic logistics services. For aviation logistics services, the City encourages enterprises to provide 24/7 services; strengthen the connection between Da Nang international airport and key economic areas in the country and internationally. Railway logistics services are also focused on, with the construction of a cargo terminal at Kim Lien station connecting Lien Chieu port, investing in developing Kim Lien station into a hub, a multimodal connection point for sea - rail - road...

To attract investment, Da Nang also offers many attractive incentives to investors. In particular, the City will establish a Free Trade Zone, centered on Lien Chieu Port, Da Nang International Airport, high-tech zones, industrial zones, etc. to provide attractive incentive policies to investors, such as tax exemptions and reductions. At the same time, it will invest in infrastructure for logistics services, especially information technology infrastructure; form and operate an information network to provide logistics services to businesses in the area, the Central Key Economic Zone and countries in the East-West Economic Corridor, etc.

Possessing great advantages and potential, and with additional push from policies, the logistics industry of Da Nang City is ready to enter a breakthrough phase.

Source: https://baodautu.vn/xay-dung-khu-thuong-mai-tu-do-hien-thuc-hoa-giac-mo-trung-tam-logistics-cua-da-nang-d228609.html