Multinational groups, including Nike, submitted the infrastructure development issue to the Government in late 2006, expressing their concerns over Ho Chi Minh City seaports inability to handle cargo in the coming time, and over weaknesses in the traffic system like roads carrying commodities from factories to transhipment terminals, airports and seaports.
Mr Amanda Tucker[SLG1] of Infrastructure Working Group at the Vietnam Business Forum 2007, said although positive moves have been made since September 2006, the construction progress and schedule for completion of infrastructure works are still issues of concern.
Reports by shipping firms show new equipment in Cat Lai and VITC ports in Ho Chi Minh City have increased handling capacity. These two ports can handle more than two million TEUs (twenty-foot equivalent units) of containers in 2007. However, the increase in goods volume and the rising number of ship calls in 2007 cause frequent congestion at these ports, even as they are operating above their designed capacities. This is forecast to trigger disruptions in cargo circulation over the next two years. (According to the Ministry of Trade’s report, Vietnam’s export value was estimated to jump from US$40 billion in 2006 to US$100 billion in 2010. Thus, the compound annual growth rate, CAGR, will reach 22 per cent.)
Mr Amanda Tucker [SLG2] stressed that even when handling capacity and working output are increased, shipping companies still forecast a 200,000 TEU capacity shortfall in southern Vietnam in 2007, if growth is 20 per cent. If the growth rate is 25-30 per cent, the transporting and handling deficiency will amount to 300,000 TEU. This means shipping firms will face delays in uploading cargo this year, especially during peak months.
Mr Tan Hua Joo of the Ports Sub-group/Infrastructure Working Group, said accurate throughput statistics for container cargo at Vietnamese seaports is still not publicly available. The statistics come from different sources and consequently the figures vary. Mr Tan Hua Joo emphasised that the lack of accurate data may lead to incorrect investment decisions. Detailed data about individual ports, laden and empty container moves, and international and domestic volumes are essential for accurate demand projections.
In addition, tardiness in carrying out approved projects is also a big challenge. For example, the inauguration of Phu My Bridge and National Road 2 surrounding Ho Chi Minh City has been delayed until 2009, initially planned for 2007. The stagnation of these projects causes serious adverse impacts on the circulation of goods in Ho Chi Minh City and limited access to Hiep Phuoc Port, which is currently being built by P&O. In addition, four port development joint ventures (SSA Marine, AP Moller Terminals, PSA and Hutchison Port Holdings) for Cai Mep - Thi Vai area licensed six months ago are encountering difficulties because of inconsistent traffic infrastructure. Poor road conditions limit port developers to working only near the waterway. This will negatively impact the construction schedule. The target of opening these ports in 2009 and 2010 will be delayed to 2010 and 2011. Meanwhile, the dredging of all river beds in Cai Mep - Thi Vai area to a minimum depth of 14 metres is delayed and the completion schedule remains unclear.
“We cannot stand any more delay to the current projects,” said a business representative at the recent mid-year Vietnam Business Forum. Investment decisions in the coming time depend on anticipated infrastructure development. If unable to effectively improve its infrastructure system, Vietnam may lose its opportunity to grasp potential investment capital?
P.V
[SLG1]Check this – Amanda is typically a woman’s name, so Ms Amanda Tucker ??
Vietnamese
