Home breadcru News breadcru Logistics breadcru Vietnam needs $676-796 mn to develop ICD network by 2030: Ministry

Vietnam needs $676-796 mn to develop ICD network by 2030: Ministry

06 Jan '23
2 min read
Pic: Shutterstock
Pic: Shutterstock

Vietnam would require VND15.9-18.7 trillion ($676-796 million) to develop a network of inland container depots (ICDs) by 2030, according to its transport ministry, which recently submitted the draft plan on IDC system development in the 2021-30 period to the Prime Minister Pham Minh Chinh for consideration. Ten ICDs operate now—nine in the north and one in the south.

Six other inland ports were designated as ICDs, but are yet to be converted.

The draft plan prioritises upgrading ICDs located on the corridors to the major seaports and border gates, including those at Hai Phong port, HCM City and Cai Mep-Thi Vai.

It targets the ICD system to be capable of handling 20-30 per cent of the container transport demand for import and export by 2025 with a total capacity of 6-8.7 million TEU per year and 25-35 per cent by 2030.

The ministry estimates that the country would need VND15.9-18.7 trillion ($676-796 million) to develop the system of ICDs by 2030.

ICD operations lack efficiency and there is hardly any link among ICDs and logistics centres in some localities, feels the Vietnam Maritime Administration.

Twenty five ICDs are under construction now or under preparation for construction and 26 others planned had not been initiated as many of those were not attractive to investors, especially those in the central region, according to a Vietnamese media report.

The connectivity of ICDs in the north with seaports remained weak. The northern zone also has a smaller container transport market share—only around 30 per cent of the south’s, but most operational ICDs are in the north.

ALCHEMPro News Desk (DS)

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