Việt Nam, a potential global transit hub
Việt Nam, a potential global transit hub
With the growth of e-commerce, Việt Nam has become a destination for many manufacturing and logistics firms, creating strong demand for high-quality logistics real estate, said CEO of Cushman & Wakefield Trang Bùi.
Goods loaded at Đình Vũ Port in northern city of Hải Phòng. Recent significant investments in Việt Nam's seaport system have established modern facilities that meet international standards. VNA/VN Photo Tuấn Anh |
Trang said the total warehouse supply in Hà Nội and HCM City is only around 2.02 million sq.m and 5.13 million sq.m, respectively. Industrial parks and logistics facilities in major urban areas, especially in the two cities, are experiencing high occupancy rates with some reaching nearly 100 per cent. The demand for warehouse space is expected to continue growing.
She said Việt Nam is strategically located next to the economic corridor in southern China, which includes prominent regions such as Shanghai, Shenzhen, Fuzhou and Guangdong, chosen as the headquarters of major industrial, chemical, trade, and electronic technology companies. Việt Nam's industrial parks welcomed investment from global electronics companies early on, such as Panasonic (1971), LG Display (1995), Canon (2001), Foxconn (2007), Samsung (2008), Fuji Xerox (2013), and more recently conglomerates like Pegatron, Goertek and Jinko Solar. Việt Nam is currently presented with the opportunity to elevate the value of the manufacturing supply chain.
According to the Ministry of Transport, Việt Nam has a total road length of 595,201 kilometres, with 25,560 kilometres designated as national highways. The expressway network has been expanded to 1,239 kilometres, with roughly 14 new routes and sections under construction, equivalent to 840 kilometres.
The national railway network spans 3,143 kilometres, with 277 stations and two routes linking with China from Đồng Đăng and Lào Cai. The northern region has road, waterway and rail routes directly to Shenzhen, known as China's Silicon Valley, making it easier for enterprises to expand and allocate production in the area.
Việt Nam's seaport system has received significant investments in recent years, with modern facilities that meet international standards, notably Hải Phòng and HCM City container ports being among the 50 largest in the world. The seaport system comprises 286 port berths, with a total quay length of over 96 kilometres.
For the first time, shipping companies have been able to provide direct services from Việt Nam to North America and Europe without the need for transhipment through regional hubs like Singapore or Hong Kong (China), saving some US$150-300 per TEU for containers to and from Việt Nam.
The Vietnamese Government has targeted meeting demand for export-import, trade between regions and areas nationwide, as well as cargo transit and passenger transport both domestically and internationally by 2030.
Cushman & Wakefield experts said Việt Nam had the potential to compete with global logistics hubs such as Dubai (United Arab Emirates) and Hong Kong (China), and even with Singapore and Shanghai (China), aspiring not only to become a global cargo transit hub but also a vital link in the global manufacturing supply chain.
In the first eight months of this year, the total FDI poured into Việt Nam hit nearly $18.15 billion, up 8.2 per cent year on year.
