Central Vietnam province eyes seaport infrastructure as catalyst for investment attraction

Vietnam’s central coastal province of Thua Thien-Hue is increasingly becoming a promising land for seaport infrastructure investors, thanks to the enormous potential of its marine system and coastal lagoons.

The province, adjacent to Danang city, is one of the few localities in Vietnam capable of developing a large-scale seaport industry. It boasts the Chan May deep-water seaport, deemed the closest and most convenient gateway to the East Sea (internationally known as the South China Sea) for the East-West economic corridor connecting central Vietnam with Laos, Thailand, Myanmar, other Asian countries, and the world.

Hoang Hai Minh, Vice Chairman of the provincial People’s Committee, said that Chan May port, located in Phu Loc district, has exceeded its designed capacity of four million tons of cargo by 50%. With an average annual growth rate of 25%, the seaport is forecast to need five to seven more wharves with a total length of 1,930 meters and a throughput capacity of 7.5 to 13.8 million tons of cargo by 2025.

In 2022, the local Management Board of Economic and Industrial Zones greenlit VSICO Maritime Joint Stock Company to build wharves 4 and 5, totaling VND1.67 trillion ($65.94 million) and covering 20.4 hectares, at Chan May port.

The two wharves have a total length of 540 meters, enabling them to accommodate 70,000-ton vessels and container ships of up to 4,000 TEUs. In April this year, the firm broke ground on the project with a total investment of VND1.67 trillion ($67.3 million).

In addition to Chan May port, Phong Dien harbor, located in Phong Dien district, is catching the eyes of investors. By 2030, the harbor is expected to include eight to 12 wharves with a total length of 1,250-2,620 meters and a throughput capacity of six to 11 million tons of goods.

In August 2023, a joint venture between Stavian VP., JSC; VP Silica JSC, and My Thuy Port JVC, sought approval from the local Department of Planning and Investment and the Ministry of Transport to invest in Phong Dien port.

However, the ministry declined the joint venture’s request since a plan for seaport and wharf development in Thua Thien-Hue province in 2021-2030, with a vision to 2050, is being formulated, hence yet to be approved by the Vietnam Maritime Administration (VMA).

The provincial department has completed an appraisal of the investment plan, and it is awaiting the ministry’s agreement for submission to the local People’s Committee for approval.

Last year, the provincial government gave in-principal approval to PTS Far East Investment JSC to study investment in wharves 2 and 3 at Phong Dien port. The project is expected to span 400 ha in Dien Loc and Dien Hoa communes.

Earlier, Thua Thien-Hue authorities urged the Vietnam Maritime Administration to quickly submit the provincial seaport and wharf development plan in 2021-2030, with a vision to 2050, to the Ministry of Transport for approval, aiming to facilitate investors.