Combining with seaports and logistics ecosystem to support export-import goods

Representatives of Saigon Newport Corporation shared solutions on logistics. Photo: T.H.

Developing port-logistics ecosystem

At the seminar "Developing logistics in the key economic region in the South, promoting import and export activities," organized by Customs Magazine on April 6, Mr Do Xuan Minh, Director of Logistics Services Center - Saigon Newport Corporation (SNP), shared many solutions for connecting the port ecosystem and the digital ecosystem being deployed at the corporation's seaports.

According to Mr Do Xuan Minh, logistics development in Vietnam in general and the Southern region is facing some difficulties in infrastructure, from ports to connecting roads to warehouse systems. In the Southern region, despite accounting for 45% of the total volume of goods and over 60% of the container cargo of the country through the two port systems of Ho Chi Minh City and Ba Ria - Vung Tau, road transport is still the main mode of transportation. The traffic system is overloaded, and the lack of highways causes congestion and increases labour and material costs. Although the Mekong Delta region has a convenient river system for developing inland waterway transport, goods in this area still have to be concentrated at ports in the Southeast region for export, causing a waste of time, cost, and complexity.

Saigon Newport has been developing a comprehensive port ecosystem to optimize transport costs, reduce time, limit risks, and improve logistics companies' competitiveness. This ecosystem includes a system of inland ports, satellite warehouses, and distribution centres in convenient locations suitable for the distribution of goods from each manufacturing region. It also includes warehouses, cargo consolidation points, full-service logistics services, serving customers from empty container transport, packing at the factory to container loading onto ships bound for foreign ports, and digital ecosystems.

With the advantage of a well-connected system, especially in the southern region, Saigon Newport is operating a port system including Cat Lai and Hiep Phuoc ports in Ho Chi Minh City, the deep-sea port cluster in Cai Mep (Ba Ria - Vung Tau), and a system of ports in the Mekong Delta region (including TCCC port capable of receiving direct feeder ships and inland waterway ports in Sa Dec, Cao Lanh). It also includes logistics facilities, warehouses such as ICD Song Than, ICD Long Binh, ICD Nhon Trach, and a fleet of transport ships and barges, providing convenient connectivity and serving the diverse needs of businesses.

Saigon Newport's port ecosystem is seamlessly connected through a multi-modal logistics service chain, including road, inland waterway, sea, and rail transportation. One of Saigon Newport's major goals in the coming period is to focus on connecting the Mekong Delta region, Binh Duong, Dong Nai - Cai Mep directly by taking advantage of the waterway connectivity from Saigon Newport and ICDs in these areas (Tan Cang - Cai Cui, Thanh Phuoc, ICD Tan Cang Nhon Trach) and reducing pressure on road infrastructure connecting to Ho Chi Minh City. This will increase flexibility in transport connectivity and support businesses when there are customs procedures, liquidation, and delays.

Saigon Newport also develops new solutions with multi-modal connectivity services from Mekong Delta to Vientiane via Newport Shipping's inland waterway vessels, stopping at the Vietnam-Laos port to meet the expanding demand and penetrate new markets and potential for goods from the Mekong Delta. Additionally, Saigon Newport is developing a railway line from Đong Anh station to Song Than station, then connecting to Cai Cui Newport via container trucks and distributing goods to provinces in the Mekong Delta.

The area around Cat Lai port will have a large-scale logistics centre. Image: T.H.

Based on its strengths in experience and system connectivity, Saigon Newport has logistics centres and representative offices in the Mekong Delta and Northern regions, providing comprehensive logistics services, from booking international shipping to inland and sea transportation services, port cargo handling, and customs leasing.

In addition to developing new facilities to meet the demand for the import and export of goods, Saigon Newport continuously upgrades the existing infrastructure to increase operational capacity and meet the growing needs of customers with the highest quality of service.

The five recommendations for logistics service development

Representatives from Saigon Newport have proposed some content to create more favourable conditions for import-export businesses and logistics companies. Accordingly, building a legal corridor, especially regulations on inspection and supervision of transhipment goods, will attract a huge amount of goods through the Cai Mep and Ho Chi Minh City ports.

According to Mr Minh, the amount of Cambodian transhipment goods is equivalent to 450,000 TEUs per year; the amount of transhipment goods in Cai Mep and Ho Chi Minh City is equivalent to 400,000 TEUs and may increase because Cai Mep and Ho Chi Minh City currently have relatively competitive port services compared to Singapore in terms of lower handling costs.

To create a higher flow of goods according to the direction of the Prime Minister, representatives from Saigon Newport Corporation proposed that relevant authorities review and adjust Decree No. 08/2015/ND-CP, 59/2018/ND-CP, Circular 38/2015/TT-BTC, and 39/2018/TT-BTC to create the most favourable conditions for inspection and supervision procedures for transhipment goods in the original container with the original seal without detailed declaration as imported and exported goods.

Building solutions and proposing streamlined procedures for transhipment and transit processes, simplifying these procedures instead of applying the same procedures for exporting and importing goods into Vietnam. Specifically, reviewing Decrees 90/2017/NĐ-CP, 128/2020/NĐ-CP; Circulars 30/2014/TT-BNNPNT, 06/2022/TT-BNNPTNT, and inter-ministerial Circulars between the Ministry of Finance, Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, and the Ministry of Transport.

Reviewing relevant documents related to the definition of dry ports, ICDs, and seaports to facilitate port-to-port transhipment and inter-port handling within the same customs branch or customs branches of the same Customs Department or between ports belonging to different customs departments. Creating the most favourable conditions without restricting the industry for businesses to open declarations at the most convenient border gates. Reviewing Decree 69/2018/NĐ-CP and Circular 27/2019/TT-BCT, which regulates the list of suspended scrap imports and exports, temporary imports, re-exports, and transit trading.

Considering waiving infrastructure fees in Ho Chi Minh City for waterway transport to promote green transport development, inland waterway port systems, and regional connectivity between provinces and cities with favourable inland waterway transport connections.

Building policies to support the development of free trade ports, including tax exemptions and favourable conditions for traders and investors. Establishing an information technology system that connects with existing ports and customs data to ensure accurate control of goods in free trade ports. Goods transported in free trade ports do not need to open transit declarations and seal the container twice. There is a roadmap to attract investment and business, including transhipment and transit goods, with "0% tax, low tax rates, and a simple tax system" to promote trade flow, investment, capital, and cross-border human resources more conveniently, as well as information security and data security.