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Making Thanh Hoa a logistics center of the Northern Central

To facilitate investment attraction and trade, relevant departments, sector and localities of Thanh Hoa province have been implementing the Decision no 2119/QD-UBND dated June 9th, 2020 by the Chairman of the Provincial People’s Committee in approving the Project of Developing Logistics Services in the Province to 2025, orientation to 2030, which will make Thanh Hoa a logistics Center of the Northern Central.

Making Thanh Hoa a logistics center of the Northern Central

In the process of construction and development of transport infrastructure, Nghi Son Economic Zone and other industrial zones in Thanh Hoa province have affirmed their attractions: attracting many investment projects with relative synchronicity. At the same time, they contribute greatly in shifting labor structure and sector structure, increase the State-budget revenue, offering job opportunities and create a driving force for socio-economic development of the province and the region of Northern Central.

Nghi Son Economic Zone has Nghi Son deep-water port- the largest international port in the Northern central having potentials to be one of the largest ports in Vietnam. According to reports from Thanh Hoa’s Department of Transport, in Nam Nghi Son port, some berths have been invested or have been under constructions (4 general berths of Nghi Son Steel and Iron Company, berth no.6 of Cong Thanh Cement JSC, berths no.7 and no.8 of Long Son Cement Co.,…) and those in preparation for investment (berths no.9 and no.10 of Long Son Cement Co., and others in the container terminal no.2).

With developed transport infrastructure, there will be advantages of exploiting logistics services and multimodal transport for cargo through seaports

On May 9th, 2019, France’s CMA- the third largest container shipping company in the world- decided to open an international container shipping route to Nghi Son. There have been 114 container vessels estimatedly coming in or out the port with 20,000 TEUs of cargo going through the port. It is expected in May, 2021, China’s Container SITC will have research and open a number of route to the Inner Asian countries from Nghi Son.

With developed transport infrastructure, there will be advantages of exploiting logistics services and multimodal transport for cargo through seaports, which will be the potentials and development advantages of Nghi Son seaport in particular and the seaport system of Thanh Hoa province in general. However, according to preliminary statistics, the volume of cargo transported by sea of Thanh Hoa only reaches about 30% of the total amount of cargo circulating through the province every year. To make Thanh Hoa a regional logistics service centers, representative of the provincial Department of Transport revealed there will be coordination with localities and relevant organizations to implement the Decision no.2119/QD-UBND by Chairman of the Provincial People’s Committee on approving the Project of Developing Logistics Service in the Province to 2025, orientation to 2030.

Developing sea transport services will help develop ship building and repair industry

The Decision form Chairman of the Provincial People’s Committee clearly stated: “Gradually developing the logistics services in Thanh Hoa province in the modern and professional direction with focus points, ensuring quality and effectiveness, actively contributing in the GRDP growth and the State budget revenue; at the same time, supporting other provincial sectors of industry, trade and services to develop… Along with that, the provincial Department of Transport advised the Committee to mobilize resources to invest in key transport works which has connectivity features: connecting seaports and logistics centers to carry out multi-modal transport; to ask investors to speed up seaport projects to gradually complete Nghi Son Port system as planned, to improve exploitation abilities of ports of Nghi Son and Le Mon and to call for investments in Quang Chau Port; to carry out branding work for Nghi Son International Port to attract shippers in Thanh Hoa and neighboring regions to have cargo transport through Nghi Son Port; to call for investment to develop port services, sea transport and logistics in the provincial area; to facilitate large sea transport companies and both foreign and local logistics providers’ activities when they have import-export activities in Nghi Son Industrial Park.

On February 19th, 2021, the People’s Committee of Thanh Hoa Province held a MOU signing ceremony with Asia Investment and Asset Management Joint Stock Company (ASHICO) and its partners on the investment project of the Northern Central Logistics Center and on the infrastructure construction of the Industrial Park No.6 in Nghi Son Economic Zone. It is expected the land area used for the project is 395ha (370 ha of the Industrial Park no.6 and 25ha belonging to the seaport planning). The term of the project is 50 years from the date of the investment certificate granted; the total investment capital is VND 6,000bn.

The Northern Central Logistic Center in Nghi Son Economic Zone- which will be invested, built and put into operation- will create a large source of revenue for the provincial budget. At the same time, it will help develop other sectors and fields related to logistics services. Developing sea transport services will help develop ship building and repair industry. Reducing logistics costs will help reduce costs and improve competition abilities of goods being locally manufactured. The Industrial Zone no.6 and Nghi Son Economic Zone will have modern infrastructures that meet requirements from investors, facilitate business production activities in the economic zone and attract investments. On the other hand, the project offers job opportunities to thousands of laborers, improves the human resource quality and attract high-skilled labor sources from neighboring provinces to Thanh Hoa.

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