Ph.

D thesis summary by Nguyen Quy Hoang presented at Paramount University

2007
Abstract
Viet Nam has seen rapid economic growth after adopting economic reforms in 1986, making the
nation one of the fastest growing economies in Asia. The ongoing efforts of the government
towards international economic integration such as the forming of ilateral trade agreements,
attaining memerships of the A!"AN #ree Trade Area $A#TA% and accession to the &orld
Trade 'rgani(ation $&T'%, has led to further rapid changes in Vietnam)s trade and economic
regime. #avorale government policies for industrial activit* have led to the growth of #oreign
+irect ,nvestment $#+,% flows and the estalishment of more privatel*-owned Vietnamese
enterprises. This have given great momentum to the nation.s industrial sector and resulted in the
multi-fold growth of its international trade.
/ence, Viet Nam is riding high in the e*es of the international communit*, ut it has to do more
to improve its image and attract foreign investors. 'ver the last 10 *ears, containeri(ed
throughput within the countr* has een growing at aout 191 per annum. $!tatistic 2ear ook,
3010%. The tale elow, show the estimated increasing growth rates for container trade in
Vietnam from *ear 3000 to 3014 /owever, Viet Nam port sector is facing a numer of critical
challenges, including the lack of deep water ports that can receive larger ships, old and
inefficient port facilities, and suoptimal landside infrastructure.
Estimated and orecast gro!th rates or container trade "2000#20$%&
'ear (ontainer )o*ume "+EU& (ompound Average gro!th rate over
previous period
3000 68.5 9.11
3010 168.9 5.61
3014 155.6 4.01
",ource- .,/ 20$2&
7nderstanding deepl* this situation, the Vietnamese government also deserves some credits
towards their acknowledgement of the seaports. importance. 8ore and more current ports are
eing renovated and updated to meet international standards. 9ut the improvement seems not
high, there will e some difficulties need to overcome especiall* the investment polic* in port
field and the location with favorale soil condition to uild the port.
!o, how to stimulate the development port field in Vietnam needs to e considered and
discussed, that is the purpose of this paper.
0ntroduction
)ietnam country
Vietnam has a land area of 639,600 s:uare metes and a population of 80.65 million people of
which 601 is elow 60 *ears of age $Vietnam, 3011%.
1
&ith a coastline of 6360 km and 6; seaports, Vietnam has 136 cargo terminals and a total erth
length of 64 km comprising 366 erths. $State of water: Viet Nam, 3013%. ,t is availale for
container port uilding
Vietnam is currentl* the fastest growing econom* in south-east Asia. ,ts <+= growth is
e>pected to e 4.5 1 in 3013 $Uncertainty remains, 36 8arch 3013%
'ear .ro!th rate o Nationa* .DP
3013 4.5
3016 6.3
2
301; 6.;
$,ource? Saigon-gpdaily-Society, 13 April 3013)
PE,+ Ana*ysis in Vietnam port field
Po*itica*- like other fields, the usiness in port field is also governed * government and
foreign rules. The international usiness is su@ected to the political stailit*. This fact is
favorale for Vietnam ut the law s*stem changes so often, the process to appl* for
getting investment certificate in port field is ver* complicated, a lot of unreasonale
regulations to control the investment in port field still e>ist, this can e seen in the elow
part- literature review.
Economic? Viet Nam has seen rapid economic growth after adopting the reforms, the
economic impacts to container seaport are serious ecause these affect the growth of Vietnam
econom*.
,ocia*? Aifest*le has great influence on import field ecause Vietnamese people likes
foreign products, import field will impact to container port. This re:uires for port
development.
+echno*ogy? Technolog* also impacts to port uilding and transport infrastructure is the
core of the countr*.s infrastructure, which is of great importance in the seaport
development. 9esides, efore uilding port, geolog* of the areas needs to e surve*, and
high technolog* will impact to this process.
&ith the favorale geograph*, ="!T anal*sis result and the increasing of growth rate of National
<+= *ear * *ear indicate that Vietnam is the potential land and has the good conditions to
develop international port.
1iterature revie!
$. +he suitab*e p*ace to bui*d container port in )ietnam
Mr. Vuong Toan Thuyen in 2010 had the stud* of Vietnam economic for sea transportation,
mentioning the ideal places for container uilding in Vietnam.
,n this stud*, he came to the conclusion that Buang Ninh, Cai Aan $from the North%, Van =hong
$in the central VN% and Cai 8ep Thi Vai $in 9aria Vung Tau province% are the ideal
places to do port development for the south.
Aet review these locations to find out wh* the* are suitale for container port development
a. Quang Ninh province
3
Quang Ninh province (,ource: ap!ones)
Buang Ninh province has a total area of more than 6,000 s: km. it is one of the large provinces
in the northeast of Vietnam and is rectangular in shape. There are no volcanoes, earth:uake in the
area.
This province has man* natural advantages in resources and geographic conditions and suitale
waterwa*, road and railwa* network and port facilities. 9ecause of these factors, the province is
an important gatewa* to the north of Vietnam The province has access to man* land and water
transport routes and includes Cai lan, the onl* deep water port in northern Vietnam.
b. )an phong bay in 2hanh Hoa "Nha +rang& province
"hanh #oa province (,ource: ap!ones)
4
Van phong a* is in Dhanh /oa province- the middle of Vietnam, 40km north of Nha Trang cit*.
The depth is over 33m, and the narrowest part of channel is over ;00m that is good for two wa*
safe navigation.
There are no volcanoes, earth:uake in the area. The mountain is of granite stone without
underground cave, so it is suitale to uild huge constructions. Natural heights in islands would
e eas* to overcome, and there are no ostacles to improving of this area.
This place is a large a* that is naturall* protected, closed to wind and not filled * sediment. ,ts
topological structure is strong enough for high weigh construction. The most important
advantage of Van =hong is its depth capale of constructing erths for full* loaded ships with
capacit* over 100,000 +&T and draught over 14m
9* these advantages, Van =hong has comparative advantage in attracting new generation vessels
and other future ones including container ships. ,t is in fact a place where dreams of the maritime
strategists ma* come true-developing of an ,nternational Transshipment =ort in Vietnam.
c. 3aria4)ungtau Province in the south
$aria Vung %au province (,ource: ap!ones)
9a Eia Vung Tau is one of a sea province of Vietnam. ,t is located on the coast of the countr*.s
southern region. &ith a draft of more than 1; metes, together with more demand on regional
transportation in near future Cai mep Thi Vai is ideal place to develop port for the south of
Vietnam.
,t is to ecome an overloading for /C8 area, it needs to have a new place to develop port for the
south of Vietnam, the stud*ing relating to Cai mep Thi Vai shows that this place is the ideal place
to do port development for the south ased on its geograph* conditions and the container
demand as well.
3. 0nrastructure improvement need
5
Ms. Doan Thi Phin in 2005 had the paper of FVietnam Transport +evelopment and challengesG,
reported at the '+A "valuation on Aug 10-1, mentioning the challenges in infrastructure which
Vietnam has een facing with.
!he mentioned in her paper that FTransport infrastructure is the core of the countr*.s
infrastructure, which is of great importance in the socio-economic development and Vietnam
transportation s*stem need to e improved to attract foreign investmentG she said F&t is necessary
to correctly assess the present status of transport infrastructure in order to have development
orientations in the near future with the enhancement of economic integrationG
!he concluded?
- 8an* roads and man* works in operation in Vietnam are of low
standards
- A numer of ig sea-ports are located deep in side the hinterland. Their
assess channels are not deep enough. =ort scale and ackups are not integrated, short of a
good road s*stem linked with the national road network.
,nternational Container =ort can not e uilt easil* if the road s*stem near the intended port
uilding areas is too adH /ow material can come easil* to the destination for port uildingH
5. .eo*ogy condition to bui*d port in )ietnam
,n Geology conditions of Vietnam, the stud* of geolog* * <eo"ngineer ,nc 7!A on 39 8arch
3005, the land in 9aria Vung Tau province $ !outh of Vietnam% was tested to see whether it can
e uilt the container port or not.
The report mentioned that?
The strata of Vietnam can be mainly divided into the following main
layers:
Layer 1: (C!"# $lastic clay with organic mater% bl&ish grey% dar' grey
Layer 2: (($)("# "edi&m to *ne (ilty (and% yellowish grey% bl&ish grey%
medi&m dense to dense state
Layer 3: (C!CL# ard Clay% whitish grey% bl&ish grey
Layer 4: (("!($)("# +ine (ilty (and% yellowish grey% dense state
Layer 5: (("!(,)("# ,eathered medi&m to *ne (ilty (and% whitish
grey% bl&ish grey% very dense state
Layer -: .ranite% whitish grey% mottled dar'% hard state
9ased on the geotechnical review, it appears that up to ;4 meters of highl* compressile
saturated cla* e>ists elow the site. This cla* is underlain * a (one of medium dense to ver*
dense sand with relativel* low compressiilit*. The cla* can e separated into two units?
-
$. An upper unit appro>imatel* 33 meters thick with undrained shear strength ranging
from appro>imatel* 4 to 34 k=a $100 to 400 psf%.
2. A lower unit appro>imatel* 36 meters thick with undrained shear strength ranging
from appro>imatel* 34 to 54 k=a $400 to 1400 psf%.
9ecause of the thickness and low strength of the cla* units, it is likel* that significant
consolidation settlement will occur and slope stailit* will e affected when fill is placed.
This report came to the conclusion that sea provinces in Vietnam is ale to uild container ports.
6. Port congestion main*y in the south o )ietnam
7rost 8 ,u**ivan "2009& in Vietnam transportation and logistics? Challenge I opportunities
shows that port congestion mainl* in the south of Vietnam, it can e seen in the tale elow?

9ased on the aove tale, it can e seen that throughput of !outh Vietnam accounts for 561
$3,338,639) 6,040,408% of the countr*.s total container ones
%. +he procedure to get investment certiicate in port ie*d sti** comp*icated
/
After reviewing the current law stipulated for investment certificate in port field, the writer saw
that Vietnam has a lot of unreasonale regulations to control the investor doing usiness in
Vietnam, such as?
Tender law governs the contractor and supplier choosing of investors stating that
more than 7!+ 61,340 for consulting service, more than 7!+ 134,000 for purchases
needs to have the tender. ('()*(( +, %#( -+V(*N(N%% ./ 0uly 1222#
Joint venture enterprises having more than 601 state owned capital needs to follow
the tender law. ('()*(( +, %#( -+V(*N(N%% ./ 0uly 1222%
#oreign investor into port field needs to @oint with !tated owned compan* and can not
have the share more than ;913( Thomas J. Treutler and John ", !eptemer 3005#
9asis design need to e approved * 8'T efore starting construction and this process takes
more than 3.6 months
The writer in will take some results from three aove studies $1 to ;% to support for the
recommendation in this research pro@ect. 9ut, not stopping at the condition of market needs for
container port development. The paper will mention the ke* conditions to develop international
container in Vietnam. #or e>ample, in order to attract foreign investment in port field, to simplif*
the procedure to grant investment certificate for foreign port investment should e put in
consideration * the government.
The paper will shows for investors have the whole picture of current situation for port field in
Vietnam, ased on that, the* can have plan to invest into Vietnam in this field.
!o, this paper can ring enefit to Vietnam government and to foreign investors.
:esearch indings
To support for literature review, 60 :uestionnaires will e sent to foreign companies in /a Noi,
/C8C and +a Nang to get the opinion from the port investors.
This section provides the anal*sis and discussion of the surve* findings focusing mainl* on three
main points?
$1% The relative importance of motivating factors that foreign investors in port field considered
when selecting investment locations in Vietnam
$3% /ow foreign investors in port field evaluated actual conditions to the place the* want invest
into.
$6% /ow actual conditions of the place influenced investor investment in port field decision.
The relative m!ortance of Motivating "actors
Question $- ;hich is the most importance actor !hen you *i<e to invest in internationa*
container port ie*d into )ietnam=
0
8an* factors ma* affect the foreign investors. decision when selecting a location for investment
in Vietnam. After conducting the in-depth interview with potential respondents, four factors were
taken into consideration * investors in their investment decisions.
7actors (ode 7re>uency
=h*sical infrastructure $Transportation, =ower)water suppl*, sewage
s*stem%
1 16
Aegal procedures to get certificate investment 3 10
Aocal costs 6 ;
<eographical location ; 6
?ode =h*sical infrastructure
?ean 1.9
,tandard deviation 0.99
!elf- reported relative importance of the aove-mentioned motive factors indicates that ph*sical
infrastructure was considered to e the most important factor when investing in international
container port field into Vietnam with 16 choices. ,n addition, the Aegal procedures to get
certificate investment and Aocal costs accounted for 10 choices and ; choices respectivel*. The
geographical location was not considered as ver* critical factors influencing with the lowest
choices $6 choices%. Thus, mode is ph*sical infrastructure ecause it is the first choice of all
respondents. 9esides, comparing with ; ranking, standard deviation is 0.99 is :uite high. !o, it
makes the result is not e>act.
1
$. 0nrastructure actors or attracting 7D0
Question 2- Access the >ua*ity o )ietnam ,ea port transportation and the road system in
provinces !hich have sea "*i<e 3a :ia@ )ung +au@ Nha +rang@ Hai Phong@ Quang
NinhA&
Eespondents operating in different fields have different opinion aout the relative importance of
each t*pe of transportation that directl* affects their usiness. Aout 441 of the respondents
recogni(ed that waterwa* was the most important means of transporting goods and materials.
This makes sense for doing international container port development in Vietnam.
&hen assessing the :ualit* of Vietnam !ea port transportation and the road s*stem in provinces
which have sea $like 9a Eia, Vung Tau, Nha Trang, /ai =hong, Buang NinhK%, the respondents
were asked to evaluate $from poor to good% for the actual s*stem. And this is the result?

7re>uency
Poor Norma* .ood
!eaport
1; 10 6
Eoad s*stem
16 9 4
#ea!ort
(ode 7re>uency
Poor 1 1;
Norma* 3 10
.ood 6 6
?ode =oor
?ean 1.56
,tandard deviation 0.58
12
$oad system
(ode 7re>uency
Poor 1 16
Norma* 3 9
.ood 6 4
?ode =oor
?ean 1.66
,tandard deviation 0.56
11
According to the result, nearl* half of respondents $1;)60 respondents% evaluated !eaport
transportation was poor. This level is also the mode. According to the mean and standard
deviation, the standard deviation is low when rate is 6 and with this standard deviation is low, it
enales the result is more accurate. 9esides, few respondents $10)60 respondents and 6)60
respondents% evaluated !eaport transportation was normal and good respectivel*. Thus, Vietnam
!ea port transportation needs to e improved the :ualit* for international container port
development.
Aout road s*stem, it also has haft of respondents $16)60 respondents% thought it poor, 9
respondents evaluated it normal and onl* 4 respondents evaluated it good. Therefore, mode is
poor. This result is also accurate, ecause the standard deviation is low $0.56%. And the same with
!eaport, the :ualit* of Eoad s*stem in provinces which have sea $like 9a Eia, Vung Tau, Nha
Trang, /ai =hong, Buang NinhK% need to e improved.
Question 5- Access the >ua*ity o po!er and !ater supp*y in provinces !hich have sea in
)ietnam@ it considers as inrastructure or internationa* container port investment
"lectricit* comes from the North-!outh 400 kV high voltage line through 110 kV and 330 kV
sustations. ,t asicall* meets domestic needs and supplies electricit* to ma@or industrial areas.
12
/owever, ecause of outdated electricit* grid s*stem, minor prolems occurred sometimes and
affected usinesses in the areas.
To develop an* usiness as well as the international container port, the investors alwa*s consider
aout the :ualit* of power and water suppl* to make sure it does not have an* prolems in the
uilding and operation. 9esides, the sewage s*stem is also the important factor when considering
for the container port development. As we know, the sewage s*stem is a drainage s*stem for
carr*ing surface water and sewage for disposal. ,f this s*stem is not good, it will cause the
circulation prolems for oats, and ships. As the result, to develop international container port in
Vietnam, three factors need to e evaluated.
And the tale elow shows the evaluation of respondents aout the :ualit* of power and water
suppl* in provinces which have sea. ,n summar*, the power and water suppl* as well as sewage
s*stem of Vietnam is acceptale and could meet investor asic re:uirement.

7re>uency
Poor Norma*
.ood
=ower suppl* ; 11
14
&ater suppl* 1 9
30
!ewage s*stem 3 18
10
Po%er su!!ly
(ode 7re>uency
Poor 1 ;
Norma* 3 11
.ood 6 14
?ode <ood
?ean 3.65
,tandard deviation 0.53
13
&ater su!!ly
(ode 7re>uency
Poor 1 1
Norma* 3 9
.ood 6 30
?ode <ood
?ean 3.66
,tandard deviation 0.46
#e%age system
(ode 7re>uency
Poor 1 1
Norma* 3 18
.ood 6 10
?ode Normal
?ean 3.36
,tandard deviation 0.4;
Almost respondents evaluated the water suppl* and the power suppl* was good $14 choices and
30 choices respectivel*%. This level is also the mode. A small numer of respondents think it
normal with 9 choices and 11 choices respectivel*. 'nl* few respondents considered it poor $1
choice and ; choices respectivel*%. Aout the !ewage s*stem, mode is normal, ecause over half
of respondents thought it normal. 10 respondents evaluated it good and onl* 1 respondent
thought it poor. All of these results are accurate, ecause the standard deviation is low. $0.53,
0.46, and 0.4; respectivel*%
2. 1ega* supports rom )ietnam government
Question 6- ;hat do you thin< about the *ega* procedures re*ating to submission or
internationa* container port investment certiicate into )ietnam=
14
To operate a usiness legall*, an* investors and usinesses need to meet all the laws and
re:uirements in this countr*. And legal procedures relating to sumission for international
container port investment certificate into Vietnam can consider as the vital factor to start the
investment into domestic field.
+or the 3&r3ose of this st&dy% the res3ondents were as'ed abo&t the legal
3roced&res relating to s&bmission for international container 3ort investment
certi*cate into Vietnam4 5nd the res&lt was 3resented in table below:
(ode 7re>uency Percentage
"B&
(omp*icated 1 18 60
Easi*y 3 13 ;0
?ode Complicated
?ean 1.;
,tandard deviation 0.4
Complicated was what the respondents descried legal procedures relating to sumission for
international container port investment certificate into Vietnam with the large numer of choices
$18 choices%.The rest of respondents evaluated it easil* with 13 choices. Thus, mode is
complicated. 8oreover, through the mean and low standard deviation $0.4%, this result can e
considered accurac*.
15
9esides, respondents also complained aout the decision making process of local agencies as
well as working attitudes of officers who have responsiilit* in related fields. A conservative and
ureaucratic s*stem was the most prolematic, which frustrated foreign investors. 8an*
respondents agreed that the decision making process was too slow. !ometimes, unclear
responsiilit* etween authorities cost them a lot of time and solve a small prolem. #or
e>ample, customs officials are unale to define the :ualit* and consistenc* of e:uipment and
machiner*, forcing usinesses to spend time and mone* hiring professional appraising
organi(ations to assess their goods.
5. (ost consideration or port ie*d investor
Question %- ;hich *oca* costs@ oreign investors may consider !hen deciding to invest in
internationa* container port ie*d into )ietnam
#oreign investors took into account several t*pes of cost in making their investment decision. ,n-
depth interviews with respondents revealed that the* usuall* tend to choose the location which
helps them to gain opportunities of lowering Aaor cost, reducing =reparation costs $legal,
feasiilit* stud*, consultant, surve*K.%, and 8aterial costs, getting cheaper Aand cost $land
lease%.
To evaluate the local costs, foreign investors ma* consider when deciding to invest in
international container port, respondents were ask to choose four ma@or t*pes of cost. These are
Aaor cost, =reparation costs $legal, feasiilit* stud*, consultant, surve*K.%, 8aterial costs,
Aand cost $land lease%. And the tale elow shows the result.
+ype o cost (ode 7re>uency
Aaor cost 1 16
=reparation costs $legal, feasiilit* stud*, consultant, surve*K.% 3 3
8aterial costs 6 10
Aand cost $Aand lease% ; 4
?ode Aaor cost
?ean 3.36
,tandard deviation 0.5;
1-
!elf reported local costs, foreign investors considered the most was Aaor cost $16 )60 choices%.
The second local cost, which the* considered was 8aterial costs with 10 choices. The third cost
was Aand cost $Aand lease% with 4 choices. And the least choices were =reparation costs $legal,
feasiilit* stud*, consultant, surve*K.%. Therefore, mode is the laor cost. And asing on mean
and :uite low standard deviation $0.5;%, the result might e accurac*.
%. .eographica* *ocation
Question 9- ;hat do you thin< the geographica* actor in )ietnam or in internationa*
container port deve*opment=
Vietnam, especiall* in the central has man* advantages for the port development, ut it is also
has some disadvantages. The central is located in the t*phoon path and serious flooding happen
ever* *ear. This limitation seriousl* affected the operating process, transportation network as
well as dail* life of people. And for the purpose of this stud*, the respondents were asked to
evaluate the geographical factor in Vietnam for port development with the result as follow?
.eographica* actor
(ode 7re>uency
Percent
"B&
Ver* good
1 6 10
<ood
3 31 50
Normal
6 4 15
=oor
; 1 6
?ode <ood
?ean 3.16
,tandard deviation 0.66
1/
!event* percent respondents $31)60 respondents% elieved that the geographical location in
Vietnam for port development was good. This level is also the mode. 9esides, 10 percent
respondents evaluated the geographical location in Vietnam ver* good. 'nl* three percent
respondents evaluated it was poor. And the rest of them evaluated it normal with sevent* percent.
According to the mean and standard deviation, the standard deviation is low when rate is ; and
most of them think the geographical location in Vietnam is good. &hen the standard deviation is
low, this enales the result is more accurate. And with the result of this :uestion, we can see the
geographical location in Vietnam has the high potential for port development.
Question 7- &hich part in Vietnam $North, Central, and !outh% in Vietnam *ou intend for
international container port investmentH
Aocation for seaport is one of all important factors when deciding to invest. ,nvestors alwa*s
want to find the favorale locations to reduce the uilding risks, to make their @o easil*, and to
have more advantages for future operations. This is the reason wh* respondents were asked to
evaluate the suitale part in Vietnam, which the* think it has more intention for international
container port investment. And the results are shown in these tales?
(ode 7re>uency
North 1 4
(entra* 3 8
,outh 6 15
?ode !outh
?ean 3.;
,tandard deviation 0.55
10
According to result, there are 15 respondents choose the !outh is the most intention location for
developing international container port. The second location is Central with 8 choices and the
third location is the North with 4 choices. Therefore, mode is the !outh. ,n addition, with the
mean and low standard deviation $0.55%, the result will e more e>actl*.
Question C- Do you thin< the c*imate in )ietnam suitab*e or internationa* container port
deve*opment@ no serious ris<s "*i<e vo*cano@ earth>ua<e@ typhoon@ *oodA& !i** impact to
your investment=
(ode 7re>uency Percentage
'es 1 30 65
No 3 10 66
?ode 2es
?ean 1.66
,tandard deviation 0.;8
11
Vietnam lies in the tropics and sutropics, with the climate varies consideral* from region to
region. /owever, the main climate in Vietnam is distinguished as two seasons, which are the
rain* and the sunn*. 8oreover, it does not have an* volcanoes, earth:uakes. !ometimes it has
t*phoons and floods, ut it does not happen fre:uentl*. 9esides, the climate can e predicted, if it
has the ig t*phoons and floods. Thus, there are 651 respondents agreed the climate in Vietnam
suitale for international container port development, no serious risk. And onl* 661 respondents
disagreed it. 9asing on it, mode is *es. ,n addition, !tandard deviation is 0.;8. ,t is low and
provides the accurate result. !o, Vietnam.s climate can e considered as suitale for developing
international container port.
9. 0ntention o investors
Question D- Do you thin< )ietnam has the maEor potentia* or internationa* port
deve*opment=
(ode 7re>uency Percentage
'es 1 31 501
No 3 9 601
?ode 2es
?ean 1.6
,tandard deviation 0.;5
22
Through the result, port development has 50 percent of respondents $31 choices% elieve that it
reall* has the ma@or potential. !o, mode is *es. And onl* 60 percent of respondents $9 choices%
think it not. And the result is e>actl*, ecause of the mean and low standard deviation $0.;5%.
Therefore, Vietnam is reall* the potential countr* can develop the international container port.
Question $0- 0 not investment no!@ do you thin< you !i** invest or internationa* container
port ie*d in uture=
(ode 7re>uency Percentage "B&
'es 1 18 601
No 3 13 ;01
?ode 2es
?ean 1.;
,tandard deviation 0.4
21
=ort development got the respondent. elief and interest, this illustrated the numer of
respondents want to invest for it in future with 601, therefore, mode is *es. And there is a
minorit* proportion does not want to invest with ;01. 9ecause of the mean, and low standard
deviation $0.4%, it will provide the accurate result Nevertheless, port development still has the
e>pectation to develop in the future.
:ecommendation
$. +he necessity to have port deve*opment in )ietnam
=ort development needs to e done in Vietnam due to the following reasons?
Current facilities of main ports in Vietnam are not enough.
Vietnam has soft climate, has man* provinces which have sea, has suitale land geolog*
to uild ports, so it ecomes the potential place for international container ports to e
uild, this matches with the result from aove :uestionnaires $ result from :uestion 6, 8, 9
and 10%, esides those, with the cheap laour price in Vietnam also is the most advantage
for Vietnam to attract the foreign investment in general and in port field in particularl*
$ result from :uestion 4%
The ma@orit* of ports in Vietnam are not designed for modern cargo handling.
8an* of the older ports in Vietnam are designed for ulk cargo and do not have dedicated
container handling e:uipment and facilities.
=otential port congestion is of increasing concern at some ports especiall* in southern
Vietnam, which has further added to the lead times in cargo handling.
22
Vietnam container volume has grown, the growth has created a deficit of container
terminal capacit*.
2. Port bui*ding and suitab*e areas
a. Northern area o )ietnam
&ith a draft of more than 13 metres, Buang Ninh is the ideal place to uild international
container ports.
b. (entra* area o )ietnam
As said in literature review, Van =hong a* in Dhanh /oa province has natural deep water
conditions with a draft of more than 14 meters, this is the ver* good place to uild port for the
central of Vietnam
c. ,outhern area
+ue to the port congestion for the south of Vietnam area, the main new port development plans
should e focused on the Cai 8ep Thi Vai elonging to 9aria Vung Tau province. &ith a depth
of 1;m, the ports to e uilt here will e the deepest container ports and e>pected to ecome the
main international gatewa* ports for !outh of Vietnam.
8ost of investors to e asked in the surve* like to invest port in the south of Vietnam $result
from :uestion 5%
5. 0nrastructure renovation in the sea provinces
Eoad s*stem in the sea provinces where container port will e uilt is ver* important factor for
foreign investors when the* want to select the investment location in Vietnam. !o Vietnam
needs?
Buickl* upgrade, improve the road s*stem in the sea provinces where container ports can e
uilt.
,t means that when the new ports are uilt, the <overnment needs to ensure that the landside
infrastructure development matches that of the new ports $result from :uestion 3, 6%.
6. Need to have the simp*iication o current *a! system
The results of :uestionnaires show that the investors are not satisf* with the current procedure to
get the investment certificate in port field. Therefore, in order to attract the #+,, Vietnam needs
to simplif* the related law s*stem and tr* to make them simple and improve the approval
process. $result from :uestion ;%
(onc*usion
Through the stud*, some measures to develop ,nternational port in Vietnam have een
mentioned. ,n order to attract investment in port field, Vietnam government needs?
To simplif* the administrative procedure for granting investment
certificate to investors
23
To renovate infrastructure, read* for international container port
development
To have the plan to call investment in port uilding with international
standard in Buang Ninh $ North%, Van =hong $ Central%, Cai 8ep 9aria Vung Tau province
$ south of Vietnam% to meet the growth of economic, ut priorit* is in the south of Vietnam
24
:eerences
1. Vietnam, 3011 Availale from? http?))countries.ridgat.com)Vietnam.html LonlineM
LAccessed? 4 !ep 3013M
3. State of water: Viet Nam, 3013 Availale from http?))www.wepa-
d.net)policies)state)vietnam)seaareas.htm LonlineM LAccessed? 4 !ep 3013M
6. Uncertainty remains, 36 8arch 3013 Availale from?
http?))news.vneconom*.vn)30130636110943580=0C6)uncertaint*-remains.htm LonlineM
LAccessed? 4 !ep 3013M
;. Saigon-gpdaily-Society, 13 April 3013 Availale from? http?))www.saigon-
gpdail*.com.vn)National)!ociet*)3013);)100536) LonlineM LAccessed? 4 !ep 3013M
4. '()*(( +, %#( -+V(*N(N%, ./ 0uly 1222 Availale from?
http?))www.dpi.hochiminhcit*.gov.vn)invest)html)law4.html LonlineM LAccessed? 4 !ep 3013M
6. Thomas J. Treutler and John ", !eptemer 3005. '+&N- $US&N(SS &N V&(%N4
Availale from? http?))taglaw.com)files)+oing1309usiness130<uides)+oing1309usiness
130in130Vietnam.pdf Lonline LAccessed? 4 !ep 3013M
5. )+5(%&%&V( 4'V4N%4-(S 6 ((*-&N- 4*"(%, no date Availale from?
http?))www.investinvietnam.vn)lng)3)detail)3549)"merging-8arket.asp> LonlineM LAccessed?
4 !ep 3013M
8. .,/ "20$0& F!tatistical 2earook 3010G
9. .,/ "20$2& F!tatistical 2earook 3013G
10. )uong +oan +huyen "20$0& "conomic for sea transportation
11. Doan +hi Phin "200%& FVietnam Transport +evelopment and challengesG, reported
at the '+A "valuation on Aug 10-11
13. 7rost 8 ,u**ivan "2009& Vietnam transportation and logistic? Challenge I
opportunities
16. .eoEngineer 0nc U,A "2007& <eolog* condition for Vietnam
1;. )inamarine "2006& )an Phong4 The Vision of Centur*
14. Dre!ry ,hipping (onsu*tant "2009& Caimep Container 8arket !tud*
16. )N Economic times "20$0& Vietnam opportunities for ,nvestors
&e'site references
http?))www.usiness-in-asia.com)portsNinNvietnam.html
http?))www.vneconom*.com.vn
http?))www.saigontimesweekl*.saigonnet.vn
http?))www.mof.gov.vn
http?))www.vietnamluat.com
http?))www.gdt.gov.vn
http?))www.hcmta>.gov.vn
25
Questionnaire
Sea Port always is a critical gateway for both imports and exports in any countries. So, this
questionnaire is designed to discover which factors investors concern when they want to invest into
the country and what they think about the legal environment of Vietnam. Discussion on this
questionnaire will help us to find out the main measures for stimulating international container port
in Vietnam. our answer is confidential. !hank you for your helping.
Name?..........................................................................<ender?.....................Age?......................
9usiness field?.............................................................Nationalit*?.............................................
+he re*ative importance o motivating actors.
1. &hich is the most importance factor when *ou like to invest in international container
port field into VietnamH
=h*sical infrastructure $Transportation, =ower)water suppl*, sewage s*stem%
Aegal procedures to get certificate investment
Aocal costs
<eograph* condition
3. Access the :ualit* of Vietnam !ea port transportation and the road s*stem in provinces
which have sea $like 9a Eia, Vung Tau, Nha Trang, /ai =hong, Buang NinhK%
=oor Normal <ood
!ea port
Eoad s*stem
6. Access the :ualit* of power and water suppl* in provinces which have sea in Vietnam, it
considers as infrastructure for international container port investment
=oor Normal <ood
=ower suppl*
&ater suppl*
!ewage s*stem
;. &hat do *ou think aout the legal procedures relating to sumission for international
container port investment certificate into VietnamH
Complicated
"as*
2-
4. &hich local costs, foreign investors ma* consider when deciding to invest in
international container port field into Vietnam
Aaor cost
=reparation costs $legal, feasiilit* stud*, consultant, surve*K.%
8aterial costs
Aand cost $ land lease%
6. &hat do *ou think the geographical factor in Vietnam for in international container port
developmentH
Ver* good
<ood
Normal
=oor
5. &hich part in Vietnam $North, Central, and !outh% in Vietnam *ou intend for
international container port investmentH
North
Central
!outh
8. +o *ou think the climate in Vietnam suitale for international container port
development, no serious risks $like volcano, earth:uake, t*phoon, floodK% will impact to
*our investmentH
2es, it is suitale
No, it is not
9. +o *ou think Vietnam has the ma@or potential for international port developmentH
2es
No
10. ,f not investment now, do *ou think *ou will invest for international container port field
in futureH
2es
No
2/
42