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Istituto nazionale per il Commercio Estero
............... 9 2..... 3 II......................1 Air...... by ICE Ho Chi Minh City..................... 3 2....................... 11 2........... 5 2............................................ providing an overview of infrastructure and development of the Vietnam’s logistic sector.................................. The report is part of the project Distretti e Piattaforme Logistiche all’Estero carried out by the Office for machinery........................................................................... 13 III............................1................... Nguyen Thi Thu Ha.............................. It has been prepared by a team composed by Ms.........................AN OVERVIEW ON THE LOGISTICS MARKET IN VIETNAM TABLE OF CONTENTS I.................1 Vietnam Airlines .............................................. operation and cargo volumes................................................ 14 4.............................................................................................................................................................................. Tran Quang Nam................................................ Do Nguyen Quynh Anh and Mr.........................4 Rail .. Vietnam’s commitment to WTO in logistics......... 2 ..................... 17 Editorial note The following report...... for Vietnam............... 15 4...... Major Shipping Lines and Agency Representation.......... has been composed by the Italian Institute for Foreign Trade (ICE..................... 12 2......................2 Some major challenges..... Leading companies in the market.....................................................Vinalines ......... 14 4..................2.................................................................. A general picture on logistics in Vietnam ........ 3 2................1...................................................................... 12 2...............................................3 Maersk Line .............1.... Introduction ........ Marco Saladini who also edited its final version..........3 Road.......................... technology and services of ICE Rome and.................................2..................... Mrs.......... also known as Italian Trade Commission) of Ho Chi Minh City. 3 2......2 River and sea .........1 Infrastructure...................2................................................................................................... 16 VI....... The logistics industry in Viet Nam ................................................................. under the supervision of Mr. 14 IV.........2....................................1 Some considerations about the industry ....1............................................
the Vietnamese economy has recorded a growth rate of 7% per year. Vung Tau. have led to the growth of Foreign Direct Investment (FDI) flows into Vietnam and to the establishment of more privately-owned Vietnamese enterprises. The CAAV currently oversees 22 airports including three international airports: Noi Bai in Hanoi. With a north-to-south distance of 1. 3 . when the growth rate was 5. according to the schedules and the commitments agreed upon in the framework of Vietnam’s WTO accession. Cambodia on the west and China in the north.8% reaching a value of USD 104. export revenues amounted to USD 71.650 kilometers. Cam Ranh. Phu Bai. Danang in Central Vietnam and Tan Son Nhat in Ho Chi Minh City. Tuy Hoa.3%. or disbursement. up 11% as compared with the previous year. deltas. Ca Mau.1 Infrastructure. in January 2007. Vietnam has seen rapid economic growth after adopting economic reforms in 1986. have led to further rapid changes in Vietnam’s trade and economic regime. A general picture on logistics in Vietnam 2.688 square kilometers. Phu Quoc and Con Dao. Vinh. Besides that.I. This gap between demand and supply of logistics services can also be seen as a business opportunities for companies interested in developing their trade in Vietnam. Vietnam has 58 provinces and five big cities. Pleiku. Its geographical topography contains tropical lowlands. The inflow.1 Air Infrastructure The aviation industry in Vietnam operates under the direct jurisdiction of The Civil Aviation Administration of Vietnam (CAAV). Introduction Vietnam is located in the south-eastern end of the Indo-Chinese peninsula and occupies a land area of 331. Literacy level in Vietnam is at around 90% of the total population. hills and densely forested highlands.6 billion. 25% higher than in 2009. After a slow-down in 2009. In 2010. which is relatively higher than other developing countries. operation and cargo volumes 2. the gross domestic product (GDP) grew by 6. the Highlands in the central region and the coastal lowlands and the Mekong Delta in the south. whereas the import turnover reached USD 84 billion. The 19 minor airports are for domestic flights to the three larger hubs. due also to some constraints which will be discussed in what follows. making the nation one of the fastest growing economies in Asia. Phu Cat. Major geographic regions in the country include highlands and the Red River Delta in the north. II. Can Tho. Until 2008. Vietnam has a population of more than 85 million with an estimated 63% below the age of 30. Dien Bien. which has met some obstacles in being satisfied at the desired quality and price levels.1. They are at Hai Phong. It shares boundaries with Laos.6 billion. it is about 50 kilometers wide at the narrowest point. The ongoing efforts of the Government towards international economic integration such as the forming of bilateral trade agreements. of FDI was reached USD 11 billion in 2010. 20% higher. in 2010. attaining memberships of the ASEAN Free Trade Area (AFTA) and. Buon ma Thuot. The Kinh (Viet) ethnic group constitutes the majority of the population (about 86%) and Vietnamese is the most commonly spoken language. Dong Hoi. All these factors have led to an demand for logistics services in Vietnam in recent years. Na San. Rach Gia. accession to the World Trade Organization (WTO). The market is slowly but steadily opening to foreign providers. Gia Lam. Vietnam’s imports and exports have been consistently increasing with an annual average growth rate of 20%. favorable government policies for industrial activities and other important factors such as a relatively low cost of labor and a strategic location in a fastgrowing region of the world. Lien Khuong.
Cat Bi airport at Hai Phong with 500. Operation and Volume The two principal airlines operating in Vietnam are Vietnam Airlines and Jetstar Pacific Airlines.000. Other minor airlines have also obtained a license to operate. 4 . air freight volume is expected to continually increase in the coming years. a joint-venture between Vietnam Airline and Singapore Airport Terminal Service. Air cargo handled in Vietnam grew at the average rate of 17 percent per annum during the 2000-2007 period. but so far only Air Mekong has started flying from its base in Phu Quoc island. Ho Chi Minh City’s Tan Son Nhat is the largest airport. handles international cargo operations for 22 airlines and has an annual cargo throughput of 100.4 million and Hue’s Phu Bai Airport with 520.Currently. the government has pushed the Ministry of Transport to start the construction in early 2011. The airport is to be built in two phases. The 92. and Cam Ranh from domestic to international airports. Noi Bai Airport’s cargo operation in Hanoi are handled by Noi Bai Terminal Services with 19 international airlines offering freight services.000 cars at a time. capable of accommodating heavy longhaul planes. Danang Airport with 1. Tan Son Nhat Airport added an international terminal.000 square meter facility has a capacity of 10 million international passengers and one million tonnes of cargo per year. 50 km to the northeast of Ho Chi Minh City.000 tones (about 80% of total international freight volume). while Jetstar has a stake in the latter one. Chu Lai in central Quang Ngai province. The company is majority owned by Vietnam Airline together with several other Vietnamese freight forwarders. including the Airbus A380. however it is still in stand-by. The most significant new airport project under consideration is the Long Thanh International Airport in Dong Nai Province. The plan for Phase II envisions four runways 4. Recently. Phu Quoc Island. The previous terminal was converted to serve domestic flights with a capacity of 7 million passengers every year. CAAV is in the process of converting existing airports at Cat Bi Island (near Haiphong). with the USD 5 billion-worth Phase I having a designed capacity of 20 million passengers per year. Other airports with significant passenger throughput capacity include Noi Bai Airport in Hanoi with 7. Though the rate has lightly reduced due to the effects of the crisis in 2009. Both of these airlines are state owned. Parking area of the whole airport can accommodate 30 airplanes and about 6.000 passengers per year. The total capacity will be then upgraded 80 to 100 million passengers and 5 million tones of cargo per year. serving more than ten million domestic and international passengers a year. The project was supposed to start in 2007.000 meters in length and 60 meters wide. also due to the emphasis placed by the government on attracting manufacturers of electronics and high tech industries which require more sophisticated transportation. Tan Son Nhat Cargo Services.1 million passengers. including the increased used of air freight. In 2007.
cement.2 River and sea Infrastructure Vietnam’s dense river and canal network provides the country with a highly developed inland waterway system. the inland waterway transport sub-sector is managed by two state corporations affiliated to the Ministry of Transport. one state-owned enterprise (SOE) affiliated to the Vietnam Inland Waterway Authority.km) 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 year Source: General Statistics Office 2. 2000-2009 Volume of Freight by Air. accounting for 25-30% of total transport volumes.tons. This is particularly true of the Mekong River Delta where. Volume of Freight Traffic by Air 2000-2009 350 Volume of Frieght Traffic (Mil. This is the second-largest sub-sector involved in domestic cargo transport. inland waterway transport also handles a large volume of other building materials and agricultural products. and paper industries.Figure 1. In addition. Volume of freight. 2000-2009 Volume of frieght (Thous.tons) 150 100 50 0 2000 2003 2005 Year 2007 2009 Domestic Overseas Source: General Statistics Office Figure 2. Currently. and some enterprises managed by other ministries. there are about 230 co-operatives and hundreds of inland waterway transport enterprises in the country. 5 . fertiliser and cement. As the traditional routes serving the key industries such as coal for power generation. it accounts for 60-70% of total transport. operating in support of the power generation.1. in some provinces.
The government is aware that port congestion is now a critical issue threatening Vietnam’s export growth. They serve not only their immediate vicinities but also the neighboring provinces of Binh Duong. Vietnam’s seaport network comprises many small. where it comes 99th out of 133 countries in terms of ports infrastructure. It has just begun to operate by a joint-venture between DP World and Tan Thuan Industrial Promotion Company. given that 72% of the country’s container throughput passing through its ports. and in the World Bank’s Logistics Performance Index. limiting the capacity and depth at the entrance and suffering from urban traffic congestion.Vietnam’s 3. Quy Nhon (1%). Hai Phong (20%).5m -10m -11m alongside berth Max Sixe of 30. Since 2009 it has approved several big seaport projects which are under construction.000DWT vessel Land area 60ha 20ha 50 ha Quayside 10 4 2 Gantry cranes VICT.000DWT 30. Table 1. This is one of the major reasons why Vietnam is ranked behind its neighbours in both the World Economic Forum’s Gobal competiveness Report 2009-2010.5m -14m 30. Facilities at the Main ports in Ho Chi Minh City Port Cat Lai VICT Saigon Port information No of Berths 6 4 18 Total Berths 800m 678m 2.and medium-sized entities. with inefficient distribution.000DWT 2. leading to low productivity. However.000DWT 25. The loading and unloading equipment in some ports is obsolete.Saigon International Terminals Vietam Port Source: Different sources Ben Nghe SPTC Port 4 3 816 m 500m -10.667 m of Length Depth -10. Except for some new or upgraded ones. where it comes in 53rd place. Some ports are located in big cities where road traffic is particularly congested. where a large number of industrial and manufacturing plants are based. while its neighbours Singapore and Malaysia are placed second and 29th respectively.260 km coastline has 127 ports.200 TEU 32 ha 23ha 0 5 6 . in addition to the Mekong Delta and the Central Highlands. Baria – Vung Tau. like Hai Phong and Ho Chi Minh City. The only exception is Saigon Premier Container Terminal since it was built in 2008 at the suburban areas.The five main locations that receive regular container services in Vietnam are Ho Chi Minh City (handles 72% of total cargo throughput). lack investment and are seriously degraded. Concentration of medium ports in Hochiminh city Ho Chi Minh City is a critical gateway. most ports have been operating for many years. Cai Lan (4%). Dong Nai. Most big ports are located far inside rivers. all ports are located very near to city centre. Two new big ports in Ba Ria-Vung Tau province are expected to show up as well among the major ones. with limited depth at the entrance. Da Nang (1%). after their inauguration in 2010. of which 25 handle ocean cargo. making it difficult to forward cargo via other modes of transportation.
Map of ports in Ho Chi Minh City Source: SPCT Ba Ria-Vung Tau. Current plans for the port include terminals for container ships with loading capacity of 15. will see construction of two large and five small berths with a quay size of up to 2. Van Phong port.000 DWT. new region of deepwater ports The new region for deepwater ports is Ba Ria-Vung Tau Province.35 million TEU per year. is to be built by Vinalines to serve as a regional hub similar to those operating in Hong Kong and Singapore. formed a joint venture for Cai Mep International Terminal (SP-SSA). Saigon Port Company and Vietnam National Shipping Lines (Vinalines). an international transshipment port near Nha Trang.000 DWT during the second phase which is scheduled to operate in 2011. The operation of the port is expected to reduce congestion in Ho Chi Minh City’s ports. The port.000 DWT. Tan Can-Cai Mep was the first container and deepwater port developed in the province in 2008. Maersk A/S.260 meters. serving to container ship Albert Maersk. scheduled to start in 2010 or 2011 and finish in 2015.000 DWT during the fist phase and 110. accommodates ships of up to 80. Khach Hoa Province.1 million TEUs per year. SSA Marine from the United States of America signed a joint-venture with Saigon Port and Vinalines to build a USD 282 million port on 60 hectares at Cai Mep and Thi Vai rivers The port includeS 600 meters of berth frontage and can handle a container throughput of up to 1. its wharves have a total berth lengths of 600 meters and it can accommodate a throughput of up to 1.000 DWT in weight. The port can accommodate ships up to 80. The port has been built from 2008 on 48 hectares. The port will accommodate ships of up to 200.000 TEUs and 17 bulk cargo piers capable of handling 17 million TEUs a year. The first phase of the Van Phong project. which begun operation in 2009. two-wharf container and deepwater port with an investment value of USD 200 million. 352 meters long and 109. This would allow the 7 . The project is the most ever significant development funded by the state budget through Official Developing Assistance (ODA). Construction of the first phase of the project was completed in 2009.Figure 3. The trial is taken in late of 2010. In 2008.
This stateowned companies is also the main developer of almost all port construction projects in the country. The port will be the largest transshipment port in northern Vietnam. and five terminals for food and other goods. Figure 4. were becoming old and unsafe and there was a lack of specialized bulk cargo ships. Until 2005.000 – 80. in northern Vietnam near Haiphong. Operation and Volume The largest local operator is the Vietnam National Shipping Lines (Vinalines). the volume of freight traffic by river has stably grown. accommodating ships of 60.Total capacity would be 35 million tonnes of goods per year. The Ministry of Transport has assigned Vinalines to develop a deep water port at Lach Huyen.000 DWT. New Port Development Map Source: Vietnam Infrastructure Report – ICE Hochiminh 8 . Its construction is expected to begin in 2011. two bulk cargo terminals. The port will include four container terminals.000 TEU vessels and have a total container throughput capacity of two million TEUs per year. the most common means of river transport in the country.facility to handle 9. In the following years expansion became more difficult for the sector since almost all barges.
) 160.000 Volume of Freight Traffic (ton/km Mln. Volume of Freight Traffic by River.000 10. APL Shipping line expects demand for container shipment in the south to increase by an average of 20-25% per year from 2011 to 2015.000 40.000 60.000 5.000 15.300 km national highway.000 140.Figure 5.000 20.6% per year. Volume freight traffic by sea. Roughly 85% of the national roads are paved.5billion ton km in 2009.000 80. the data shows a firm growth trend from 2000 to 2010.000 120. lifting the total volume to 13.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Source: General Statistics Office 2. Hochiminh City’s ports report that the demand is usually higher than their capacity.000 100. 2000-2009 Volume freight traffic by sea (ton/km Mln. and 20% of the district roads are paved. while only 54% of the provincial roads.000 km of road. The volume of freight traffic by sea increased on average by 19. Only ¼ of the road network has more than one 9 .17.) 25. 2000-2009 30.000 20.3 Road Infrastructure The statistic of 2007 shows that Vietnam has about 210. With respect to the throughput of the port system.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Source: General Statistics Office In terms of freight by sea.1. Figure 6.
with much of it being a single lane road of insufficient width. Very few foreign invested companies are present. It is assumed that the data should be higher when adding the freight forwarded by tens of thousands of individual 10 . 233 limited liability companies.160 km of new highway projects as part of the national Transport Master plan. poorly designed junctions and restrictive vehicle weight limits. There has been a 16% yearly growth. seems not so easy to be solved in the short term. The total freight traffic reached 30 ton/km Bln. The problem. Summary of approved highway projects in Vietnam to 2020 Source: VEC.Vietnam Expressway Corporation. Road transport accounts for around 60% market share of domestic cargo. Each company owns about 50 vehicles. which included 16 state-owned enterprises. The table below summarizes approved highway projects in Vietnam to 2020. Table 2. The government has approved an estimated 2. the inefficiency of urban roads is also a challenge to container transfer towards or inside major cities. 350 private companies and 450 joint stock companies. Beside the lack of highway system. moreover.lane and major constraints include narrow widths.050 enterprises registered in the road transport business. on average. Vietnam does not have a modern expressway linking the northern and southern parts of the country. 2008 Operation and Volume In 2009 there were over 1. on average. in 2009. in the volume of freight road transport over the last 10 years. the Ministry of Transportation and MPI have developed plans for a series of road upgrades. To address road infrastructure constraints. Route 1A running the length of the country is of varying quality. The traffic congestion seriously increases time of forwarding. Most road transport companies are of small and medium scale.
8 17668.1.9 27968 30261. The principal axis is Hanoi-Ho Chi Minh City (1.169 km of 1. Figure 7.3 403361.ton) 144571.km) Rate of grow (%) 7969.4 15 16 16 21 18 16 20 13 8 Source: General Statistics Office 2.726 km). Lao Cai (296 km) and Dong Dang (162 km).9 9184. National Rail System 11 .0 225296.000 mm gauge and 178 km of 1.7 192322.600km (excluding sidings).ton. 2000-2009 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Volume of freight (Thoun.3 20537. the latter mostly located in the Northern part of the country.6 298051. The network has 1.1 24646.5 km of tunnels.9 10667.8 455898.435 mm gauge tracks. Other lines emanating from Hanoi are to Hai Phong (102 km).4 494649.3 338623.Trains have a maximum speed of 70 km/hour but frequently have to slow to under 30 km/hour along older sections of track or when crossing aged bridges. Volume of freight by Road.6 12338 14938. Table 3.8 Volume of freight traffic (Mil.8 164013.household business which operate informally in the sector and are thus are not accounted for in the national statistics.7 264761.4 Rail Infrastructure Vietnam’s rail network totals about 2. It comprises 2.790 bridges totaling 45 km and 11.
‘000) traffic (ton/km Mln. However.2. The competitive structure of logistics companies in Vietnam is defined by the level of service offerings. The system has been focused on passenger traffic due to the technical challenges facing the movement of containers and bulk cargo. Apart from operating the railway infrastructure.) freight traffic (%) 6258.6 8786. 12 . The logistics industry in Viet Nam 2.9 8385. transportation.3 3446.2 9050. 2000-2009 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Volume of freight Volume of freight Rate of growth of (ton. The network connects to China’s railways at two gateways in Lao Cai and Dong Dang. Operation and Volume The rail network has a sole operator. integration of those services and their overall quality and cost. which includes both freight and passenger. Since most of the economic activity is concentrated around these regions.7 7051. a department of the Ministry of Transport. The volume in tonnage kilometer equivalent from 2000 to 2009 had an average growth rate of 7.0 2054. around 2.1 5 16 14 1 7 17 13 7 -9 Source: General Statistics Office 2.5 4170. Volume of freight by rail.2% per year with a somewhat high volatility.4 2745. storage and delivery are not commonly carried out in an integrated manner. the Vietnam Railway Corporation (VRC).3 million traffic units/route/km per year.The Hanoi-Ho Chi Minh City line connects the prime economic zones in the north and south. VRC also buys and maintains locomotives and invests in maintenance facilities.6 3882. the railway face strong competition from maritime. Traffic density is low. due to a lack of investment and old infrastructure.9 3805. this line serves as the most important link in Vietnam’s rail network.1 Some considerations about the industry The logistics industry in Vietnam is still in its infancy and the process of procurement of goods and materials.2. Table 4.4 2391.5 2725.0 8873.6 9153. The logistics market in Vietnam can be segmented based on the functions served or the extent of outsourcing.3 2949. inland waterway and road transportation modes.0 8481.1 8068. The current growth of the freight traffic through rail is not so fast because of the high costs and the poor efficiency of the system rather than due the lack of demand.1 1955. The policy and regulation functions fall under the Vietnam Railway Administration.2 6456.
Moreover. the transportation service sector as a whole in Vietnam is relatively weak. Despite having the most extensive transportation system in the Indochina region. the demand for warehousing and other value-added logistics services is also increasing. the boundaries between the operations of various businesses such as freight forwarders. Lack of clarity on roles and responsibilities slows industry growth In Vietnam. a large portion of these services is operated in-house. as well as the complexity of documentation procedures. The multiple layers of regulations and administrations in charge of enforcing them makes the documentation process highly complex and leads to subsequent increases in both lead times and the cost of processing freight. Consequently.2 Some major challenges Inconsistent regulation poses a challenge for service providers The regulatory and legislative standards concerning areas such as customs clearance. This is a major challenge for local as well as multinational companies since they find it difficult to hire the right talent. However. transportation. 13 . ground handling. Particularly. independent agents and distributors. The logistics companies. which can result in increased inventory and idle time for trucks. Demand for transportation and freight forwarding services is strong due to high volumes of materials and finished goods that need to be transported. The local carriers are largely focused on domestic and regional shipping services within South East Asia. Vietnam’s road and rail network is under-developed.2. which can lead to duplication of efforts and higher costs. while both ocean and air transportation are characterized by higher costs and longer transit times as compared to many of its neighbor countries. Lack of sufficient training and education in the field of logistics is also a major contributor to the paucity of skilled personnel. are main impediments to smooth logistics operations. The distribution system is currently fragmented and consists of a network of state-owned and private firms. warehouse operators. freight forwarders and shipping lines need to work together for optimal utilization of resources instead of working as contractors in discrete activities to offer competitive services at lower rates.The functional segmentation includes 3 main categories i. ships and planes. is a critical gateway for both imports and exports. Ho Chi Minh city. through which more than 70 percent of Vietnam’s container throughput passes. Logistics costs in Vietnam are estimated to be nearly double the cost in industrialized nations and a major portion of this cost can be attributed to high inventory holdings. nevertheless. and terminal operations are highly complex. modern distribution outlets and state-owned stores.e. import-export firms and wholesalers. so it will take time before outsourcing becomes more prevalent. Such businesses are often fragmented and do not generally complement each others’ service offerings. and retail outlets including small family-run shops. Shortage of Skilled Manpower The Vietnamese logistics industry lacks experienced logistics professionals. The transportation function accounts for a major portion of logistics activity followed by freight forwarding and trading services. Many seaports and airports also lack supporting logistics distribution centers. the Vietnam shipping industry is dominated by international carriers who are able to provide global coverage of services. freight forwarding and warehousing. the lack of clarity on multi-modal rules governing customs and the transportation regime. fleet operators and integrated logistics companies are not well defined. 2.
IV. foreign investors who would like to invest in this service must establish a joint venture with Vietnamese partners and the ratio of foreign capital can not exceed 51%. In 2006. foreign investors must establish a joint venture with Vietnamese partners. . . From the date of 11/01/2014. Vietnam Airlines became a member of the SkyTeam Alliance joining other major airlines 14 . limitation of foreign capital in the joint venture will be 51%.III. warehousing services in Vietnam under what forms and what conditions? + Container loading and unloading service Under the WTO commitments. foreign investors can establish a joint venture with Vietnamese partners without restriction on the foreign capital in that joint venture.Checking bills of lading . From the date of 11/01/2010. foreign investors can establish a joint venture with Vietnamese partners without restriction on the foreign capital in that venture or they can even establish 100% foreign owned capital company. foreign investors can participate in following services on behalf of cargo owners.Sampling and weight determination . In June 2010.Restriction on the rate of capital contribution: in the joint venture. Vietnam’s commitment to WTO in logistics According to commitment to WTO. Vietnam has committed to opening up following sectors: · Container loading and unloading service · Warehouse service · Freight agency service Foreign investors may provide container loading and unloading. Leading companies in the market 4. Foreign investors may provide freight agency service in Vietnam under what forms and what conditions? According to WTO commitments.Receiving and accepting goods . In the joint venture. the proportion of foreign capital can not exceed 51%. Since 11/01/2014.Preparing transport documents In order to do those services.Restriction on activities: Vietnam can not allow these joint ventures to provide this service at airports. foreign investors who want to invest in this service in Vietnam must establish a joint venture with Vietnamese partners with some restrictions .Checking goods .1 Vietnam Airlines Company overview Vietnam Airlines was established as a state-owned airline in 1989 and merged with a number of service companies in 1996 to give it its present form. In the joint venture. foreign investors who want to provide this service in Vietnam have to set up a joint venture with Vietnamese partners. foreign investors can establish a joint venture with Vietnamese partners without restriction on the foreign capital in that venture or they can even establish 100% foreign owned capital company. + Warehouse service Under the WTO commitments. the proportion of the foreign capital contribution can not exceed 50%. the proportion of foreign capital cannot exceed 49%. The government’s stated goal is to further integrate the company into the global market and establish itself as a regional player. From the date of 11/01/2014. it was officially accepted as a full member of the International Air Transport Association. Foreign investors may provide other services? Besides the services mentioned above.
France. To raise net profits.000 tonnes of cargo was transported on domestic routes.2mn) last year. a y-o-y increase of 17. The carrier notched up its turnover in 2009 to VND 24. The carrier also reported a seat occupancy rate of roughly 74% for both local and international flights.vietnamair. warehousing. The airline also co-operated with the Cambodia Government to jointly operate National Cambodia Angkor Air from July 2009. Vietnam Tel: (+84 4) 38320320. 15 . Financial Performance The national flag carrier Vietnam Airlines expected to see a total revenue of VND32trn (USD1. It also handled around 131.220 tonnes of cargo. Its numerous subsidiaries are active in maritime transportation and brokerage. ship repairs. a jointventure with Singapore Airport Terminal Service. and crew manning. Vietnam Airlines implemented a wide range of solutions to cut fees.Vinalines Company overview Vinalines is Vietnam’s largest state-owned group of companies.000 tonnes. netting a profit of VND150bn (USD8. Of the total. In addition to opening the Hanoi-Fukuoka route last October it took over from Japan Airlines the Hanoi-Kansai route in January with five flights a week.2. Fax: (+84 4) 38722375 Website: www. the Middle East. The company also has 50% or majority stakes in a number of international joint ventures. The company has a number of code share operations with foreign companies. freight forwarding. Vietnam Airlines’ cargo operations serve 20 destinations in Asia. The airline took full advantage of the global economic crisis to negotiate with partners to buy and lease more new planes to improve its fleet and remodel infrastructure to capitalize on opportunities that are opening up due to the recovery of the local and international economy. tts fleet of 50 modern aircrafts has carried more than 9mn passengers.78bn) in 2010. Vietnam Airlines transported about 9. import-export. positive targets are based on its good performance in 2009 which was in marked contrast to many airlines globally facing bankruptcy.com. by economizing fuel and rescheduling flights. Contact information Vietnam Airlines 200 Nguyen Son Street.3mn). container services. it said. up 2. Besides success in the domestic market. Long Bien District – Hanoi. including Hanoi-Can Tho. Hanoi-Tuy Hoa and Hanoi-Pleiku. Until 2009. Ho Chi Minh City-Dong Hoi. the carrier estimated that it would have to transport more than 11mn passengers in 2010.2mn. Australia and Europe. with partner networks serving other destinations.3% from 2008. Russia. which has an annual cargo throughput of 100.6%. a 6. The results mainly stemmed from its focus on the domestic market.vn 4. a rise of nearly 13%. To realize the turnover.3mn passengers in 2009. Vietnam Airlines saw certain achievements overseas. 87.The Vietnamese carrier provides passenger air services to 25 destinations in 15 countries including in South East Asia. up 30% against in 2009 in the context of the global economic recovery. Germany and the United States of America.6% increase from 2008. in particular the February 2004 agreement with Air France to share 11 non-stop scheduled flights between Ho Chi Minh City and Paris. Hanoi-Quy Nhon.5trn (USD 1. Bo De Ward. In 2010. terminal operation. losses and laying-off of staff. Australia.36bn). thus saving more than VND400bn (USD22. The cargo division operates Tan Son Nhat Cargo Services. It operated a series of new routes last year. with Vietnamese clients accounting for up to nearly 6.
Hanoi. Hai Phong. Sai Gon. Has estimated to costUSD1bn. expecting the contruction will start in 2011. Credit Suisse. the investors.93 trillion ($1.2 billion). two-wharf container and deepwater port with an investment value of USD 200 million. Quy Nhon. The port has the fist trial operation in the begin of 2010 and has officially being operating from August 2010.3 Maersk Line Maersk Line is one of the leading liner shipping companies in the world. It will get a VND15 trillion (USD 862 million) loan from the Bank for Investment and Development of Vietnam to meet the demand for capital. the company submited to the govement the fasibility study of the port. serving customers all over the globe. Vijaco (Vietnam/Japan). and Mizuho to secure credit. Deutsch Bank. it has 139 vessels with total capacity of 2. Maersk A/S. holding 45% total capacity of the country. The corporation would also need to upgrade its current shipyards to become more competitive. establishing a joint venture to build the port. The loan would be put towards the building of ships and upgrading seaport and logistics services planned for 2010.000-DWT vessels. Da Nang.241 trillion. 75%). a leading Chinese conglomerate.vn 4. the port would be able to handle 100. He added that Vinalines' key task in the future would be to build a new yard for repairing ships with a capacity of more than 10. Vinalines has signed a contract with China Merchants Group (CMG). despite the effects of the economic crisis both domestically and globally. The company has undergone a series of fleet expansions. In 2009 Mai Van Phuc. Nghe An. 51%) and Ahlers-Inlaco (Vietnam/Austria.com. the government has instructed state giants Vinalines and PetroVietnam to strictly adhere to the schedule approved for building a new port complex in the southern province of Ba Ria-Vung Tau. Moller . known and highly respected 16 . Maersk Line is a division of the A. and risk management services. In 2008. to be a world-class. Cosfi (Vietnam/Singapore. It profit gained VND 1. Phuc said. Swiss bank Credit Suisse signed a memorandum with Vinalines to provide loans worth USD700mn. Transvina (Vietnam/Japan. In August of that year. modernization and development projects over the past years. CEO of Vinalines said the corporation will continue to invest in key projects. Vinalines also has port operations in Ninh. 51%).including Gemartrans (with France’s CGM. have held talks with domestic and foreign banks like CitiGroup. fund raising.Vung Tau. In 2010.P. 16% per cent higher than the previous year. and Can Tho. By the end of 2010. Recent development In 2007. Phili Orient (Vietnam/Singapore. Credit Suisse provided Vinalines with ratings advisory. i. Vinalines and PetroVietnam. 51%). In 2008. Vinalines’s revenue in 2010 was VND20. Nha Trang. increasing 40%.vinalines.Maersk Group and shares its same values and business principle. 50%).000 tonnes. Vinalines has been assigned by the government to mobilize funds to develop Van Phong port and Lach Huyen port and new port in Ba Ria. As part of the Financial Service Memorandum. 90 km south east of Ho Chi Minh City.8 million ton.e. Contact information Vietnam National Shipping Lines (Vinalines) 201 Kham Thien Street. Vietnam Tel: +84 4 851 7750 Fax: +84 4 511 3039 Web: www. In the same year. Saigon Port Company and Vinalines formed a joint venture for Cai Mep International Terminal (SP-SSA).
Maersk Line in Vietnam offers weekly feeder departures to the main hub ports in Asia such as Tanjung Pelepas. Major Shipping Lines and Agency Representation Shipping Line APL CMA-CGM CNC Cosco CSAV . Kaohsiung acts as the connecting point providing access to the company’s worldwide network. A. followed by a branch representative office in Ha Noi two years later. In addition to Maersk Line. Contact information Maersk Line 26 Phung Khac Khoan Street. Maersk Line established its first representative office in Ho Chi Minh City in 1991. and Kaohsiung. district 1 HCMC Tel: (+84) 08 3824 3252 Customer service: Tel: (+84) 08 238 566 Fax: (+84) 08 238 583 VI. Vung Tau and Can Tho. forming what it claims is the country’s most comprehensive domestic shipping network.group.000 TEU. The joint venture has a staff of 180 and operates 20 vessels. further offices have been opened in Hai Phong. ensuring space protection and favorable treatment to Maersk Line’s customers in case of problems. Quy Nhon.Not Applicable Golden Lotus ( Private) Vietfracht Safi ( Vinalines) Ben Line Agencies Vosa ( Vinalines) Private Company Safi ( Vinalines) Phuoc Vinh Son ( Private) Ben Line Agencies SGN Logistics ( Private) Vinatrans Vietfracht Gemadept Fully owned Joint Venture (51%) 3rd Party Agent Joint Venture (49%) Ben Line 3rd Party Agent China Shipping Joint Venture Vietnam (49%) Integrity Shipping 3rd Party Agent Safi 3rd Party Agent Evergreen Joint Venture Vietnam (49%) Ben Line 3rd Party Agent Hanjin Vietnam Joint Venture (49%) Hapag Lloyd Joint Venture Vietnam (49%) Vietfracht 3rd Party Agent Huu Nghi 3rd Party Agent Shipping SGN Logistics 3rd Party Agent Private Company 17 . Moller holds a 75% stake in APM-Saigon Shipping Company (APM-Saigon) having its own dedicated staff in all major ports in Vietnam. The Maersk Line fleet comprises of more than 500 vessels and a number of containers corresponding to more than 1.Norasia CSCL CT Navigation Dongnama Evergreen Hamburg Sud Hanjin Hapag Lloyd Heung . Singapore. Nha Trang. together with the impressive development of trade in Vietnam.P.900.A Hyundai Merchant Marine IRISL Agency APL-NOL Vietnam CMA-CGM Vietnam Vietfracht Cosfi Agency Status Joint Venture Partner/Agency Affiliation foreign. Da Nang. Since then.
Vinalines ITL Shipping ( Private) Vinatrans Private Company Private Company Gemadept Private Company Ben Line Agencies Viconship Jardine Shipping Private Company Continental ( Private) Jardine Shipping 18 .K-Line Joint Venture (51%) KMTC Gemartrans 3rd Party Agent Maersk Maerks Vietnam Fully foreignowned MISC Gemartrans 3rd Party Agent MOL MOL Vietnam Fully foreignowned MSC MSC Vietnam Joint Venture (49%) New Econ Line Galaxy 3rd Party Agent NYK NYK Line Joint Venture Vietnam (51%) OOCL OOCL Vietnam Joint Venture (49%) PDZ Safi 3rd Party Agent PIL/ACL ITL Joint Venture (49%) RCL RCL Vietnam Joint Venture (49%) Samudera PAL 3rd Party Agent Siam Paetra SGN Logistics 3rd Party Agent Sinokor Sinokor Vietnam Joint Venture (49%) STX Pan.MACS Shipping 3rd Party Agent Ocean SYMS Ben Line 3rd Party Agent TS Lines TS Lines 3rd Party Agent Vietnam UASC Vinafreight 3rd Party Agent Wan Hai Lines Phoenix 3rd Party Agent Yang Ming Yang Ming Joint Venture Vietnam (49%) Zim/Gold Star Star Shipping Joint Venture Line (49%) Source: APL “K” Line Vietnam Hai Minh ( Private) Vinalines Not Applicable Vinalines Not Applicable Viconship ( Vinalines) Gemadept Vosa ( Vinalines) Gemadept Safi .
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