S Korean fund eyes Tran De seaport investment in Mekong Delta

South Korea’s investment fund FG Corporate is seeking investment opportunities in Vietnam's infrastructure, particularly the Tran De deep-water seaport in the Mekong Delta province of Soc Trang.

At a meeting with provincial authorities early this week, CEO Kim Seung Taik said the seaport would improve maritime transport in the region, open up new domestic and international cargo routes for ships, and enhance the competitiveness of Vietnamese goods.

In reply, Soc Trang Vice Chairman Lam Hoang Nghiep said the 4,550-hectare Tran De seaport needs an investment of VND55,700 billion ($2.27 billion) until 2030. After 2030, it needs VND146,300 billion from the private sector.

The Mekong Delta province has approved the planning of land and water areas for the project. Consultants are completing a detailed plan for submission to the Ministry of Transport who will later seek prime ministerial approval.

The project has been proposed to be invested in public-private partnership (PPP) format.

The seaport with six harbors and four wharves can receive vessels of up to 160,000 deadweight tonnages (DWT) and handle 30-35 million tons of goods a year by 2030. By 2050 and after that year, the seaport can receive vessel of up to 200,000 DWT and handle 80-100 million tons of goods annually.

The project has been added by the Prime Minister to the master plan on development of Vietnam's seaport system in 2021-2030, with a vision to 2050. It was also included in Soc Trang's list of projects calling for foreign investment in 2021-2025.

Minister of Transport Nguyen Van The said the National Assembly and the Government have already allocated VND8,000 billion ($325.9 million) to invest in Dai Ngai Bridge, set to complete in 2025, to connect Tran De seaport to National Highway 60.

Besides, the Politburo, the Party's premier decision-making body, agreed on an investment of VND150,000 billion ($6.11 billion) for the Mekong Delta, including the Can Tho-Chau Doc-Soc Trang Expressway linking with the HCMC-Can Tho-Ca Mau Expressway. The end point of the Can Tho-Chau Doc-Soc Trang Expressway is the Tran De seaport. Goods from the Can Tho airport can also be transported to the Chau Doc-Can Tho-Soc Trang Expressway.

Vietnam needs to invest $13 billion in seaport infrastructure by 2030 to improve the handling of container goods from the current 24 million twenty-foot equivalent units (TEU) a year to 30-40 million. About 90% of the capital should be mobilized from the private sector, Le Cong Minh, chairman of Vietnam Port Association (VPA), said at an event in September.