USAID helps ease jam at Vietnam’s busiest container port

The U.S. Agency for International Development has rolled out 21 recommendations expected to reduce traffic congestion at Cat Lai container port in Ho Chi Minh City, including leveraging IT solutions to enhance information flows and cargo clearance.

The suggestions are part of an action plan launched Thursday at a workshop co-organized in the megacity by USAID and Vietnam Customs.

The workshop brought together more than 70 representatives from Vietnam Customs, ministries, and the business community to discuss the plan, which is the result of a pre-feasibility study on anti-congestion and facilitating trade logistics at Cat Lai Port, conducted by the USAID Trade Facilitation Program between May 2020 and March 2021.

The study takes a comprehensive look at the 160-hectare port’s operations, to assess performance, bottlenecks, and constraints to increasing port handling capacity.

It also offers 21 recommendations for the government and local stakeholders to consider. They include leveraging IT solutions to enhance information flow and cargo clearance, new or expanded port facilities and improved operational performance.

In addition, through its INVEST project, USAID is working with the Ministry of Transport’s Vietnam Maritime Authority to examine likely areas for public-private partnership, seen as an effective way to mobilize investment for large-scale infrastructure projects.

“As international trade recovers from the impacts of Covid-19, addressing congestion at Cat Lai Port has become a priority. When implemented, the anti-congestion measures identified at today’s workshop will facilitate international trade, contributing to Vietnam’s competitiveness both in the region and in the world,” said Mai Xuan Thanh, deputy head of Vietnam Customs.

Easing congestion at Vietnam’s ports will become increasingly important as trade rebounds in the post-pandemic environment, said Ann Marie Yatishock, USAID/Vietnam mission director. The Cat Lai Port pre-feasibility study conducted by USAID recommends an action plan for Vietnam’s busiest container port to help position it to handle a projected surge in container volume, she added.

Before the pandemic, the port was operating at full capacity, with demand as measured by container volume expected to double by 2030.

Around 4.9 million 20-foot containers are handled in HCMC each year, which equates to about three million trucks, or more than 8,000 trucks per day transiting in and around the city to discharge or load containers from the port area. Cat Lai Port handles over 92% of this volume, and roughly 50% of the country’s total container volume.

The five-year $21.7 million USAID Trade Facilitation Program (2018-2023) is supporting the Vietnamese Government to adopt a risk-management approach to customs and specialized inspection, strengthening the implementation of the WTO’s Trade Facilitation Agreement.

The program works with Vietnam Customs to standardize customs procedures, strengthen national and provincial coordination, and build the capacity of customs officials.