The development of industrial zone attached with seaport boosts investment efficiency

Sao Do Group is one among few investors that has been building a seaport inside an industrial park. had a brief discussion with Mr. Nguyen Thanh Phuong, General Director of Sao Do Group, regarding the strategy of developing industrial park infrastructure attached to seaports.

Mr. Nguyen Thanh Phuong - General Director of Sao Do Group

Nam Dinh Vu Industrial Park owned by Sao Do Group is one of the large-scale industrial parks of Hai Phong city. So, what strong points does the attraction of Nam Dinh Vu Industrial Park come from?

With a total area of 1,329 hectares, Nam Dinh Vu Industrial Park is divided into four functional sub-zones: Seaport and logistics zone, Oil and gas zone, Industrial production zone, and Non-tariff zone.

When making the plan for Nam Dinh Vu Industrial Park, we pursued the orientation of building an integrated industrial park, with functional sub-zones forming a complementary ecosystem. The output of one enterprise could be the input of another. In particular, the seaport and logistics sub-zone with a scale of nearly 200ha, equipped with seven container and general cargo berths, is the most potential focal point. The infrastructure of bonded and logistics warehouse areas has been invested following modern and synchronous standards. These are the main features of Nam Dinh Vu Industrial Park.

Currently, the whole technical infrastructure of Nam Dinh Vu container port phase 1 has been completed, with two berths put into operation with a capacity of about 800,000 to 1 million TEUs per year. The next two berths in phase 2 are under investment, tentatively to be completed and exploited by mid-2022. All equipment is newly invested, modern and in line with international seaport operation standards.

We also invested in 13ha of bonded warehouse and presently ineffective exploitation; it has been gradually contributing to the completion of facilities and services within the area.

What is your opinion on the potential of logistics development in Hai Phong, based on which the Group made a huge investment in logistics infrastructure when building Nam Dinh Vu Industrial Park?

Hai Phong has the advantage of not only being a big city directly under the Central Government but also a growth pole in the key economic triangle of the Northern region as well as possesses the convenience of the seaport and logistics system which has been exploited effectively for hundreds of years.

In recent years, the transport and logistics infrastructure of Hai Phong (seaports, airports, railways, roads, warehouses) have received strong investment. Hai Phong is also a major logistics center in the North. That has created its own characteristics and advantages in industrial real estate growth of the city, which is the development of industrial zone (IZ) infrastructure linking closely with seaport operation. Based on that, we determined that Nam Dinh Vu Industrial Park would be an integrated zone attached with seaports and logistics.

Besides, the Resolution 45/NQ-TW of the Political Bureau also decided: "Hai Phong becomes a modern industrial centre and logistics hub of the region and the country". This is an essential foundation for the local government to release important decisions on the city's development in order to turn it into a regional and international logistics service centre along with creating tremendous development opportunities for the enterprises operating in this business field.

The growth rate of the Hai Phong logistics industry is also forecast to increase rapidly. Specifically, according to the adjusted master plan on socio-economic development of Hai Phong city to 2025, with a vision to 2030, the average growth rate of logistics services in the 2021-2025 period will be 16% - 18% per year and in the 2026-2030 period it will be 17% per year. Thus, it can be said that the companies operating in logistics or related fields also have favourable growth opportunities.