Business | Shipping

Vietnam urged to invest in new ports to spur economy

Vietnam needs to invest in new, deep-water ports if it is to achieve its economic potential, according to an executive of one of the foreign shipping lines most active in the country.

  • Financial Times
  • Published: 00:00 March 5, 2007
  • Gulf News

Vietnam needs to invest in new, deep-water ports if it is to achieve its economic potential, according to an executive of one of the foreign shipping lines most active in the country.

It would also eventually have to do more to improve its inland infrastructure, as industry spread into rural areas.

A report by Neptune Orient Lines, the Singapore-based owner of APL, a leading container carrier, says that infrastructure weaknesses could hold back the country's rapid economic growth.

Vietnam enjoyed gross domestic product growth of 8.2 per cent last year and is expecting still faster growth this year.

However, the shallow water round its shores means it is unable to handle container ships larger than short-distance feeder vessels, which take cargo to Hong Kong, Taiwan or Singapore for loading on to larger, long-distance ships.

Interest

Most large shipping lines are taking a close interest in Vietnam after it joined the World Trade Organisation on January 1.

The step appears to be creating a surge in trade similar to that experienced after China joined the organisation in 2001.

Jim McAdam, NOL's group president for Asia-Middle East, said the biggest challenge was to find a consensus among all those involved about the best investments.

"The problem is not a lack of demand or of planners," he said. "We see it as a challenge of prioritising Vietnam's investment strategy."

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