The volume of goods transported through southern ports has been rising by an average of 20 % a year in recent years, according to a report by Vietcombank Securities Company (VCBS). The rate in the north has been 13.2 %.

The most important reason for the southern seaport system to do well is the development of deep-water facilities at some locations, particularly Ba Ria - Vung Tau Province. Industry insiders concurred with the analysts, saying deep-water ports are increasingly preferred around the world since they could handle large vessels like large container ships and bulk carriers.

Realising the trend, some major logistics companies in the south have stepped up investment into deep-water ports.

Gemadept is one such. The company has entered into a joint venture with French container shipping giant CMA-Terminals to build the Gemalink Port, Vietnam’s deepest and largest to date.

Gemalink is expected to become one of the most important transshipment hubs in the Asia-Pacific region.

The Cai Mep -Thi Vai complex is in Ba Ria - Vung Tau Province, around 80km south of HCM City. It contains a cluster of deepwater ports with a combined length of over 20km that handle over 30 % of the country’s exports by containers. It has the title of the fastest-growing seaport in the world with an average annual growth rate of 22 %.

According to the Vietnam Seaports Association, in the first five months of 2021 the total throughput volume passing through Cai Mep - Thi Vai was 2.3 million TEUs, a 47% increase from the same period last year.

The port, situated in the Cai Mep -Thi Vai Complex, is equipped with the most modern European facilities. It has dedicated berths for feeders and barges to optimise productivity and avoid the congestion that plagues many ports around the world.

The VCBS experts estimated it could generate enough turnover for the company to break even in its very first year.

Source: Investments in deep-water ports paying off