Vietnam Railways Corp. (VNR) and national flag carrier Vietnam Airlines have signed separate cooperation deals with the developer of a $200 million multimodal logistics and supply chain hub in northern Vietnam.
The Vietnam SuperPort project is being built in Vinh Phuc province by T&Y SuperPort Vinh Phuc JSC, a joint venture between Vietnamese multi-business group T&T and Singapore’s logistics service provider YCH.
Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and Tan See Leng, Singapore’s Minister for Manpower cum Second Minister for Trade and Industry witnessed the two memoranda of understanding signed in Hanoi over the weekend. Tan virtually joined the facility’s ground-breaking ceremony in November last year.
The Singapore minister said, “I am happy to see the progress of Vietnam SuperPort in the eight months. The two memoranda of understanding (MoU) are a demonstration of the shared commitment to make the project a reality. We look forward to hearing more on the good progress.”
Vietnam SuperPort, slated for completion by 2025, is the first largest multimodal infrastructure project invested by a Singapore firm in Vietnam. It is expected to promote seamless supply chain connectivity across Southeast Asia to support the ASEAN Connectivity Master Plan 2025.
As for Vietnam Airlines, it is the first airline secured by T&Y to operate in Vietnam SuperPort, and their MoU aims at boosting air transport and logistical support in the project, just more than one hour's drive to Hanoi.
The national carrier operates cargo terminals at the two key airports in Vietnam - Noi Bai in Hanoi and Tan Son Nhat in Ho Chi Minh City in the south.
Given the deal, Vietnam Airlines and T&Y expect to bolster Noi Bai International Airport’s capabilities to meet the projected increase in air cargo. The flag carrier will further seek to tap into YCH Group’s network of global customers.
This February, the World Bank’s investment arm IFC launched a partnership with YCH and T&T to help the duo develop the Vietnam SuperPort project in a bankable and sustainable manner, by providing technical expertise, helping them mitigate risk and strengthen environmental and social standards.
IFC said it will also support the developers in making the logistics hub's infrastructure green and sustainable, supporting Vietnam in its efforts to reach its net-zero carbon emissions target by 2050.