Vietnamese logistics firms modernize, innovate to improve services

Vietnam International Container Terminal (VICT) and Long An International Port say they have used modernization and innovation to provide better services and retain customers in a demanding market.

Both facilities are operated by local firms, VICT by First Logistics Development and Long An port by Dong Tam Group.

Speaking last Thursday at the Logistics Forum with Europe and the Americas 2023 hosted by the Ministry of Industry and Trade, Truong Nguyen Linh, deputy CEO of VICT, noted that it was the first container terminal in Vietnam, starting operations in 1998.

Green growth targets

As the facility had reached its potential and equipment investment and area expansion were not feasible options, the only solution for improvement was to innovate, upgrade the wharves and apply modern technologies to maximize the operation and ensure the safety, Linh said.

With over 30 years of experience in the seaport logistics sector, the key focus was facility innovation per green growth targets and wharf maintenance in line with producers’ recommendations.

To expand capacity and establish stronger cooperation with foreign logistics firms, innovation has been a regular effort for VICT, Linh said.

In particular, the terminal has been upgraded, equipment repaired and diesel-powered machines replaced because of their negative environmental impacts.

The terminal has also adopted digitalization, including the application of corporate governance software and making investments in programing and training staff to use the systems. It is integrating artificial intelligence (AI), robots, and advanced computers to the system with the target of achieving reached Triple ISO 14000 and 28000 standards in three years, Linh said.

He stressed challenges ahead, including roads connecting to seaports being overloaded and affordable transportation via waterway networks being under-utilized. He proposed that relevant authorities improve the dredging of channels from the sea to Ho Chi Minh City towards attracting more ships.

Comprehensive upgrade

The 147-hectare Long An International Port, located near key industrial parks and urban areas of the Mekong Delta, plays a key role in the region’s trade activities. In order to reduce logistics costs for businesses in the region, Long An authorities plan to develop the port into a general one with multiple services, starting with the launch of seven wharves and container services.

Vo Quoc Huy, chairman of the port, said linkages to the port have been improved with the introduction of Ben Luc-Long Thanh Expressway and HCMC’s Ring Road 3. This would help boost trade between HCMC and nearby localities and reduce logistics costs for businesses, he said.

As the port was just 10 nautical miles away from the sea, the facility can receive ships of up to 100,000 DWT, or three million twenty-foot equivalent units (TEUs) a year.

Rivers in the Mekong Delta provide an edge for businesses to transport goods to provinces, he noted.

The port was investing in modern machines and technology to reduce the waiting time for customers.

It has signed a letter of intent to cooperate with Long Beach port in the U.S. towards boosting exports, Huy said.

The cooperation would provide opportunities and experiences for the port to improve its operations and connect with more markets, especially in the Pacific region, he added.