Dai Quang Minh proposes $266 mln shipping channel project in central Vietnam hub Danang

Authorities in the central Vietnam city of Danang have granted in-principle approval for the nearly VND7 trillion ($266 million) Cua Lo shipping channel project, under a build-transfer (BT) model.

The proposal by Dai Quang Minh Real Estate Investment Corporation, a company affiliated with automaker and industrial group Truong Hai (Thaco), was okayed by the Danang People's Council last Friday.

The project, with a preliminary investment cost of nearly $266 million, will be developed in two phases across Nui Thanh, Tam Hai and Tam Anh communes and is scheduled for completion by the fourth quarter of 2029.

Under the approved plan, the channel will be designed to accommodate vessels of up to 50,000 deadweight tonnes (DWT).

The project also includes the construction of breakwaters, sand-control embankments, bank protection works, a pilot boarding area, and a synchronized maritime navigation system.

The project will require approximately 354.7 hectares of land and water surface for the shipping channel, coastal protection works and navigational facilities. In addition, a pilot transfer area covering about 1,080 hectares within a one-nautical-mile radius will be established.

Under the proposed payment mechanism, the investor would be compensated with land assets, including a 744-hectare non-tariff zone associated with the Tam Hoa port complex, valued at more than VND3 trillion ($114.17 million), and a 590-hectare urban, commercial, tourism and service development area in Tam Hoa-Tam Tien, valued at about VND7.4 trillion.

The total value of the land assets earmarked for payment is estimated at VND10.42 trillion ($396 million). Compensation, resettlement and site-clearance costs for the land areas are estimated at around VND3.7 trillion.

According to the Danang administration, the existing Ky Ha channel can currently accommodate fully loaded vessels of only up to 15,000 DWT or partially loaded ships of 20,000 DWT, limiting the utilization of maritime infrastructure already developed at the Chu Lai port complex.

The limitation is particularly notable as Berth No. 2, a 365-meter facility capable of handling vessels of up to 50,000 DWT, has been operational since 2024.

Authorities also noted that road transport links to the port remain incomplete, constraining cargo transportation and overall port efficiency.

The Cua Lo channel project is expected to address growing cargo demand and support projected growth in seaport throughput in the former Quang Nam province area (now part of Danang following their merger last July) through 2030.

The project is also expected to create new development opportunities in southern Danang, supporting the expansion of port infrastructure, logistics, manufacturing, urban area development, trade, services and tourism, while enhancing the attractiveness of the Chu Lai Open Economic Zone for investors.

Separately, Danang authorities recently approved a proposal by Dai Quang Minh to conduct studies and prepare investment documents for a metro rail project under a PPP model.

Under the approval, the company will carry out surveys and prepare pre-feasibility and feasibility studies in accordance with regulations. The investor will bear all costs and risks if the proposal is ultimately not approved and is required to submit documentation before October 2026.

The proposed metro line would stretch more than 103 km, linking Danang International Airport with Chu Lai Airport via Hoi An and Tam Ky.

The first phase would comprise a 30.2-km section with 14 stations connecting Danang Airport and Hoi An. The second phase would extend 73.6 km with 10 stations linking Hoi An to Chu Lai Airport.

Total investment for the metro project is estimated at over VND265.97 trillion ($10.11 billion).