Japanese investors eye up Vietnamese ports

- Japan’s Itochu Group has submitted a proposal to Vietnam’s Ministry of Transport in cooperation with Vinalines to develop the Lach Huyen port in Hai Phong.

Under the proposal, Itochu will invest US$160m to construct two container berths, with the Vietnamese government investing US$260m in further infrastructure.

If developed, Lach Huyen would be the largest port in the north of the country, comprising 11 berths with an annual capacity of 35m tonnes.

“Vinalines is very interested in working with Japanese port investors in order to learn about the development and operation of deep-water seaports,” said Vinalines chairman Duong Chi Dung.

If the co-operation between Vinalines and Itochu goes ahead, it will be the first local port financed by a private Japanese investor, although some other large Japanese transport enterprises including Mitsui OSK Lines, have proposed leasing the Cai Mep-Thi Vai port when it is completed in 2012.

In addition to Lach Huyen, Vinalines is seeking investment from Japan to build and manage the Van Phong deep-water port in Khanh Hoa Province, the largest in East Asia with 41 berths.

Japan is the largest donor of foreign aid to Vietnam and it has already contributed to upgrading the Ports of Cai Lan, Hai Phong, Tien Sa, Saigon and Cai Mep-Thi Vai.

Vietnam needs at least US$56bn to build and upgrade its port infrastructure before it will have a developed sea economy but currently the country can only finance 12-15% of this amount.

(Source: Container Management)