Vietnam's First Super-port of ASEAN Smart Logistics Network

Construction of the Vinh Phuc ICD Logistics Center, the first super-port project of the ASEAN Smart Logistics Network (ASLN), recently began with a total investment of nearly VND3,900 billion (US$170.68 million).

Rosie Nguyen

ngtrang12.ftu@gmail.com December 27, 2021 | 10:06

Vietnam's First Super-port of ASEAN Smart Logistics Network

Vinh Phuc ICD Logistics Center has a scale of more than 83 hectares, a total investment of nearly VND 3,900 billion (US$170.68 million), a design capacity of customs clearance goods of about 530,000 TEUs/year. Photo: Thanhnien

First super-port of the ASEAN Smart Logistics Network

Vinh Phuc ICD Logistics Center is the first super-port of a smart logistics network in the ASEAN region, with an integrated function of a distribution center and inland container depot aiming to provide logistic services according to the needs of the market. This super-port is part of the detailed planning for the development of Vietnam's inland port system and logistics center in the period of 2020, with a vision to 2030.

Vinh Phuc ICD Logistics Center has five goals: building sustainable infrastructure, smooth logistics with the center of international level, reducing costs for businesses, increasing the competitiveness of the supply chain and training human resources.

Do Quang Hien, chairman of T&T Group, said the center was expected to pave the way for breakthroughs in the local logistics sector, heading toward the targets of cutting logistics costs to 16% of the country’s gross domestic product by 2025, raising the contribution of logistics services to the GDP to 5%-6% and helping the logistics sector grow 15%-20%. In addition, it will help ease the pressure on ports, facilitate industrial parks and factories in goods handling and customs clearance, thus boosting trade activities between Vietnam and the ASEAN, China and other markets.

“This will be one of the largest logistics hubs in the North, connecting industrial zones by road and rail, as well as connecting to Hanoi, international airport in Hai Phong and China's Yunnan province," Do Quang Hien said.

National Assembly Chairman Vuong Dinh Hue and delegates press the button to start the construction of Vinh Phuc ICD Logistics Center. Photo: Thanhnien

Bringing Vietnam's logistics industry to the world

Speaking at the event, Le Duy Thanh, chairman of Vinh Phuc Provincial People's Committee, affirmed that Vinh Phuc ICD Logistics Center will be a transit point for domestic goods, import and export goods. The center's implementation and development plays an important role in the socio-economic development of the country, the region and Vinh Phuc province.

“Vinh Phuc will always accompany T&T Group and YCH Group to complete the progress of the project in accordance with the plan and set goals, contributing to the successful implementation of socio-economic development tasks,” he said.

Do Quang Hien, chairman of T&T Group, spoke at the event. Photo: Thanhnien

Over the years, Vietnam's logistics industry has made remarkable progress. Vietnam logistics efficiency index currently ranks 39/160, up 25 places compared to 2016, ranked 3rd among ASEAN countries. However, logistics costs in Vietnam are still much higher than the world average. According to 2020 data of the World Bank (WB), logistics costs in Vietnam are about 20.9-25% of GDP. Meanwhile, this cost level in Thailand is 19%, Malaysia is 13%, Singapore is 8% and the US is 7.7%. High logistics costs push up the cost of Vietnam's import and export goods, thereby losing its competitive advantage compared to other Asian countries such as China, Thailand, the Philippines, and Indonesia.

With the competitive pressure of international trade, the race in technology continues to create competitive advantages. A high-tech logistics center like the Vinh Phuc ICD project is not only a necessary condition for industrial production, but also an essential link to help reduce trade costs, increase stability for businesses, and contribute to promoting trade growth in countries.

Le Duy Thanh, chairman of Vinh Phuc Provincial People's Committee, affirmed that the province will always accompany T&T Group and YCH Group to complete the project progress according to the plan and set goals. Photo: Thanhnien

Application of modern IoT technology

In line with technological trends in logistics and the needs of container transport, Vinh Phuc ICD Logistics Center applies the world's leading modern IoT technology such as using robots to automate the warehouse with the computer control system; The schedule and information of containers coming and going from the center will be digitized and sent to the control center using existing information networks.

According to the plan, the project's first phase is expected to begin in the third quarter of 2022 and Phase 2 in the fourth quarter of 2024.

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