Import/Export | News & Insights

Vietnam Plans to Develop Network of Inland Container Depots with $677-696 Million Investment by 2030

Published: January 6, 2023
Author: TEXTILE VALUE CHAIN

According to Vietnam’s transport ministry, which recently submitted the draught plan on IDC system development in the 2021–30 period to the Prime Minister Pham Minh Chinh for consideration, the country will need VND15.9–18.7 trillion ($676-796 million) to develop a network of inland container depots (ICDs) by 2030. Nine ICDs in the north and one in the south are now in operation.

Six further inland ports were given ICD designations but have not yet undergone conversion.

The upgrade of ICDs near important seaports and border gates, such as those in Hai Phong port, HCM City, and Cai Mep-Thi Vai, is given priority in the draught plan.

With a total capacity of 6–8,7 million TEU annually, it aims for the ICD system to be able to handle 20–30% of the container transit demand for import and export by 2025, and 25%–35% by 2030.

According to the government, the country will require VND15.9–18.7 trillion ($677–696 million) to construct the ICD system by 2030.

According to the Vietnam Maritime Administration, ICD operations are inefficient and there is little connection between ICDs and logistics centres in some regions.

According to a Vietnamese media article, 25 ICDs are currently being built or are preparing to be built, and 26 more that were planned but not started since many of them were unattractive to investors, particularly those in the central area.

ICDs in the north still have poor connectivity to seaports. Although the majority of active ICDs are in the north, the northern zone also has a lesser container transport market share than the southern one—only around 30% of the latter.

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