This will involve upgrading ports and building new facilities around Ho Chi Minh City. The manufacturing industries of the Ho Chi Minh City area are expected to attract investments of between US$13 billion and $15 bn by the year 2000.
Thus, cargo volume in these areas could grow 20 to 30 per cent annually.
"Ho Chi Minh City's GDP growth rate in 1996 was about 15 per cent," manager, international relations at Saigon Port, Ho Kim Lan, said. "This is increasing the strain on existing port facilities and the transport infrastructure in the Ho Chi Minh City area. It is also expected that the new trans-Asian road project (connecting Malaysia, Thailand, Vietnam, Laos, Myanmar and China) will create more transport and trading opportunities."
Saigon Port, which can handle vessels up to 25,000 dwt, is currently the busiest port in the country. About $60 million is to be spent on improving its infrastructure and equipment by 2005.
The 100 per cent-foreign-owned Vung Tau International Port Company Ltd was licensed in October last year to undertake Vietnam's largest container port project at Vung Tau at a cost of $637 million. It is expected to be the future hub port for the region.
The Vietnamese government sees foreign investments as playing a key role in developing its port infrastructure. Ho, who also holds the position of permanent secretary of the Vietnam Seaports Association, said the country would need to spend $1.2 bn on port development by 2000 and another $2 bn by 2010.
Vietnam's total container throughput was up from 546,172 TEUs in 1995 to 660,000 TEUs in 1996. This is forecast to increase to 1.3 million TEUs and 5.2 million TEUs for the years 2000 and 2010 respectively. Trans-shipment cargo through the bigger ports is expected to hit 12 million tonnes per annum by 2010.
"Hence the government's immediate objective is to increase the capacity of the ports 150 per cent by the turn of the century," Ho said.