Clearing Bottlenecks in Logistics Development in Thu Duc City

9:42:09 AM | 6/21/2022

The People's Committee of Thu Duc City, Ho Chi Minh City, in collaboration with the Department of Industry and Trade and the Ho Chi Minh City Logistics Association, recently held the seminar "Development Planning of Logistics Industry in Thu Duc City” at Tan Cang - Cat Lai Terminal. Senior Captain Phung Ngoc Minh, Deputy General Director of Saigon Newport Corporation (SNP), and representatives of functional agencies of the SNP attended the event.

Located in the city's dynamic development area in Ho Chi Minh City and the Southeast region, where the flow of goods is highly concentrated, Thu Duc is considered to have advantages in geo-economics, favorable to promoting production, export, and logistics services. Thu Duc identifies logistics as an essential service industry in the economic structure, supporting, connecting, and promoting local socio-economic development, contributing to improving economic competitiveness.

According to the 2030 development orientation, there are four logistics centers in Thu Duc City: Long Binh (50 ha); Cat Lai (200 - 292 ha); Linh Trung (60 - 74 ha); Hi-Tech Park (5 - 6 ha). Thu Duc City is currently developing a logistics system for import and export for the Southeast region, such as a cluster of inland ports (ICD), a gathering place for goods transshipment, connecting road and waterway transport, and providing support services in the service supply chain logistics between import and export enterprises - seaports - industrial parks of Ho Chi Minh City, Binh Duong and Dong Nai.

Mr. Nguyen Bach Hoang Phung, Vice Chairman of the People's Committee of Thu Duc City, said: "The current problem of connectivity and transport infrastructure has not been sufficiently developed, creating bottlenecks that hinder the development of the logistics service industry in the city. In the general planning of Thu Duc City, and especially in the coming logistics industry planning, the development of connecting roads and transport infrastructure will focus on business activities.

Representative of MP Logistics Corporation, Mr. Nguyen Duy Binh, Head of Marketing Department, said Thu Duc currently does not have adequate logistics centers to handle goods for both export and import enterprises. Meanwhile, many goods were imported through Tan Cang - Cat Lai Terminal but then moved back to neighboring provinces and delivered to Ho Chi Minh City. Therefore, a significant source of logistics revenue has not been brought to Thu Duc City.

Among the ports in Thu Duc city, Tan Cang - Cat Lai terminal is currently one of the 30 largest ports in the world in terms of throughput of goods, accounting for nearly 90% of the market share of output, containers, import, and export through seaports in Ho Chi Minh city. The terminal contributes significantly to state budget revenue through import and export activities. Tan Cang - Cat Lai terminal is responsible for logistics activities, connecting with innovative and potential economic hubs in Thu Duc city, Binh Duong and Dong Nai areas.

Representative of SNP, Commander Do Xuan Minh, Director of Saigon Newport Logistics (SNPL), proposed to increase the capacity to receive vessels and develop multimodal transport connecting the port. In terms of infrastructure planning, it is necessary to have a dredging plan, regulate the static level according to international transport trends, and develop multimodal connections by waterway, road and railway. Along with that, the city needs to accelerate important traffic projects, such as the My Thuy intersection, Ring road 2, Ring road 3, and expanding Dong Van Cong street.      

Chairman of Thu Duc City People's Committee Hoang Tung said the remarks in the seminar are the basis for the city to orient the call for investment and development of four logistics centers. Thu Duc will continue to focus on implementing a logistics development project in Ho Chi Minh City to 2025, orientation to 2030. Thu Duc City will strive to become a high-quality logistics center serving import-export activities and goods trade for the whole region.

By Cong Hoan, Vietnam Business Forum