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 mem erships 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. #avora le government policies for industrial activit* have led to the growth of #oreign +irect ,nvestment $#+,% flows and the esta lishment 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 a out 191 per annum. $!tatistic 2ear ook, 3010%. The ta le 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 num er of critical challenges, including the lack of deep water ports that can receive larger ships, old and inefficient port facilities, and su optimal landside infrastructure. Estimated and forecast growth rates for container trade (20002015) Year Container Volume ( E!) Com"ound A#erage growth rate o#er "re#ious "eriod 9.11 5.61 4.01

3000 68.5 3010 168.9 3014 155.6 ($ource% &$' 2012)

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 favora le soil condition to uild the port. !o, how to stimulate the development port field in Vietnam needs to discussed, that is the purpose of this paper. e considered and

(ntroduction
Vietnam countr) 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%. &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 availa le for container port uilding
1

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%

Year 3013 3016 301; $$ource? Saigon-gpdaily-Society, 13 April 3013) ,E$ Anal)sis in Vietnam port field
2

&rowth rate of *ational &+, 4.5 6.3 6.;

,olitical% like other fields, the usiness in port field is also governed * government and foreign rules. The international usiness is su @ected to the political sta ilit*. This fact is favora le 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 unreasona le 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*.

$ocial? 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. echnolog)? 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 favora le 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.

-iterature re#iew
1. he suitable "lace to build container "ort in Vietnam

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 suita le for container port development a. /uang *inh "ro#ince

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 suita le 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. Van "hong ba) in 0hanh 1oa (*ha rang) "ro#ince

"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 suita le to uild huge constructions. Natural heights in islands would e eas* to overcome, and there are no o stacles 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 capa le 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. 2aria3Vungtau ,ro#ince 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. (nfrastructure im"ro#ement need

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 num er 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 4. &eolog) condition to build "ort in Vietnam ,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 fine (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 fine (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* compressi le saturated cla* e>ists elow the site. This cla* is underlain * a (one of medium dense to ver* dense sand with relativel* low compressi ilit*. The cla* can e separated into two units?
,

1. 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 sta ilit* will e affected when fill is placed. This report came to the conclusion that sea provinces in Vietnam is a le to uild container ports. 5. ,ort congestion mainl) in the south of Vietnam 6rost 7 $ulli#an (2008) in Vietnam transportation and logistics? Challenge I opportunities shows that port congestion mainl* in the south of Vietnam, it can e seen in the ta le elow?

9ased on the a ove ta le, 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 5. he "rocedure to get in#estment certificate in "ort field still com"licated
.

After reviewing the current law stipulated for investment certificate in port field, the writer saw that Vietnam has a lot of unreasona le 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 ", !eptem er 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 a ove 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. 9esearch findings 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 /uestion 1% :hich is the most im"ortance factor when )ou li;e to in#est in international container "ort field into Vietnam<
/

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. 6actors Code 6re=uenc) 16 10 ; 6

=h*sical infrastructure $Transportation, =ower)water suppl*, sewage 1 s*stem% Aegal procedures to get certificate investment 3 Aocal costs 6 <eographical location ; >ode >ean $tandard de#iation =h*sical infrastructure 1.9 0.99

!elf- reported relative importance of the a ove-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.
0

1. (nfrastructure factors for attracting 6+( /uestion 2% Access the =ualit) of Vietnam $ea "ort trans"ortation and the road s)stem in "ro#inces which ha#e sea (li;e 2a 9ia? Vung au? *ha rang? 1ai ,hong? /uang *inh@) Eespondents operating in different fields have different opinion a out the relative importance of each t*pe of transportation that directl* affects their usiness. A out 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? 6re=uenc) ,oor *ormal 1; 10 16 9 &ood 6 4

!eaport Eoad s*stem #ea!ort ,oor *ormal &ood Code 1 3 6

6re=uenc) 1; 10 6 =oor 1.56 0.58

>ode >ean $tandard de#iation

11

$oad system ,oor *ormal &ood Code 1 3 6 6re=uenc) 16 9 4 =oor 1.66 0.56

>ode >ean $tandard de#iation

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 ena les 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. A out 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. /uestion 4% Access the =ualit) of "ower and water su""l) in "ro#inces which ha#e sea in Vietnam? it considers as infrastructure for international container "ort in#estment "lectricit* comes from the North-!outh 400 kV high voltage line through 110 kV and 330 kV su stations. ,t asicall* meets domestic needs and supplies electricit* to ma@or industrial areas.
12

/owever, ecause of outdated electricit* grid s*stem, minor pro lems occurred sometimes and affected usinesses in the areas. To develop an* usiness as well as the international container port, the investors alwa*s consider a out the :ualit* of power and water suppl* to make sure it does not have an* pro lems 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 pro lems for oats, and ships. As the result, to develop international container port in Vietnam, three factors need to e evaluated. And the ta le elow shows the evaluation of respondents a out 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 accepta le and could meet investor asic re:uirement. 6re=uenc) ,oor *ormal ; 11 1 9 3 18

=ower suppl* &ater suppl* !ewage s*stem Po%er su!!ly ,oor *ormal &ood Code 1 3 6

&ood 14 30 10

6re=uenc) ; 11 14 <ood 3.65 0.53

>ode >ean $tandard de#iation

13

&ater su!!ly ,oor *ormal &ood Code 1 3 6 6re=uenc) 1 9 30 >ode >ean $tandard de#iation <ood 3.66 0.46

#e%age system ,oor *ormal &ood Code 1 3 6 6re=uenc) 1 18 10 >ode >ean $tandard de#iation Normal 3.36 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 num er of respondents think it normal with 9 choices and 11 choices respectivel*. 'nl* few respondents considered it poor $1 choice and ; choices respectivel*%. A out 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. -egal su""orts from Vietnam go#ernment /uestion 5% :hat do )ou thin; about the legal "rocedures relating to submission for international container "ort in#estment certificate into Vietnam<

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 su mission for international container port investment certificate into Vietnam can consider as the vital factor to start the investment into domestic field.
*or the 2&r2ose of this st&dy% the res2ondents were as'ed abo&t the legal 2roced&res relating to s&bmission for international container 2ort investment certificate into Vietnam3 4nd the res&lt was 2resented in table below:

Com"licated Easil)

Code 6re=uenc) ,ercentage (A) 1 18 60 3 13 ;0 Complicated 1.; 0.4

>ode >ean $tandard de#iation

Complicated was what the respondents descri ed legal procedures relating to su mission for international container port investment certificate into Vietnam with the large num er 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 a out the decision making process of local agencies as well as working attitudes of officers who have responsi ilit* in related fields. A conservative and ureaucratic s*stem was the most pro lematic, which frustrated foreign investors. 8an* respondents agreed that the decision making process was too slow. !ometimes, unclear responsi ilit* etween authorities cost them a lot of time and solve a small pro lem. #or e>ample, customs officials are una le 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. 4. Cost consideration for "ort field in#estor /uestion 5% :hich local costs? foreign in#estors ma) consider when deciding to in#est in international container "ort field into Vietnam #oreign investors took into account several t*pes of cost in making their investment decision. ,ndepth interviews with respondents revealed that the* usuall* tend to choose the location which helps them to gain opportunities of lowering Aa or cost, reducing =reparation costs $legal, feasi ilit* 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 Aa or cost, =reparation costs $legal, feasi ilit* stud*, consultant, surve*K.%, 8aterial costs, Aand cost $land lease%. And the ta le elow shows the result. )"e of cost Aa or cost =reparation costs $legal, feasi ilit* stud*, consultant, surve*K.% 8aterial costs Aand cost $Aand lease% >ode >ean $tandard de#iation Aa or cost 3.36 0.5; Code 1 3 6 ; 6re=uenc) 16 3 10 4

1,

!elf reported local costs, foreign investors considered the most was Aa or 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, feasi ilit* stud*, consultant, surve*K.%. Therefore, mode is the la or cost. And asing on mean and :uite low standard deviation $0.5;%, the result might e accurac*. 5. &eogra"hical location /uestion 8% :hat do )ou thin; the geogra"hical factor in Vietnam for in international container "ort de#elo"ment< 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? &eogra"hical factor Ver* good <ood Normal =oor >ode >ean $tandard de#iation Code 1 3 6 ; <ood 3.16 0.66 6re=uenc) 6 31 4 1 ,ercent (A) 10 50 15 6

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 ena les 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. /uestion B% &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 favora le 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 suita le part in Vietnam, which the* think it has more intention for international container port investment. And the results are shown in these ta les? *orth Central $outh Code 1 3 6 6re=uenc) 4 8 15 !outh 3.; 0.55

>ode >ean $tandard de#iation

1/

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*. /uestion C% +o )ou thin; the climate in Vietnam suitable for international container "ort de#elo"ment? no serious ris;s (li;e #olcano? earth=ua;e? t)"hoon? flood@) will im"act to )our in#estment< Yes *o Code 1 3 6re=uenc) 30 10 2es 1.66 0.;8 ,ercentage 65 66

>ode >ean $tandard de#iation

10

Vietnam lies in the tropics and su tropics, with the climate varies considera l* 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 suita le 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 suita le for developing international container port. 8. (ntention of in#estors /uestion D% +o )ou thin; Vietnam has the maEor "otential for international "ort de#elo"ment< Code 1 3 6re=uenc) 31 9 2es 1.6 0.;5 ,ercentage 501 601

Yes *o

>ode >ean $tandard de#iation

21

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. /uestion 10% (f not in#estment now? do )ou thin; )ou will in#est for international container "ort field in future< Yes *o Code 1 3 6re=uenc) 18 13 2es 1.; 0.4 ,ercentage (A) 601 ;01

>ode >ean $tandard de#iation

21

=ort development got the respondent. elief and interest, this illustrated the num er 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. 9ecommendation 1. he necessit) to ha#e "ort de#elo"ment in Vietnam =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 suita le land geolog* to uild ports, so it ecomes the potential place for international container ports to e uild, this matches with the result from a ove :uestionnaires $ result from :uestion 6, 8, 9 and 10%, esides those, with the cheap la our 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 dedicated container handling e:uipment and facilities. ulk cargo and do not have

=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. ,ort building and suitable areas a. *orthern area of Vietnam &ith a draft of more than 13 metres, Buang Ninh is the ideal place to uild international container ports.

b. Central area of Vietnam

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% 4. (nfrastructure reno#ation in the sea "ro#inces 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%. 5. *eed to ha#e the sim"lification of current law s)stem 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 ;% Conclusion Through the stud*, some measures to develop ,nternational port in Vietnam have mentioned. ,n order to attract investment in port field, Vietnam government needs? een

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

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9eferences 1.
3.

6.

;.
4.

6.

5.

8. 9. 10. 11.
13.

16. 1;. 14. 16.

Vietnam, 3011 Availa le from? http?))countries. ridgat.com)Vietnam.html LonlineM LAccessed? 4 !ep 3013M State of water: Viet Nam, 3013 Availa le from http?))www.wepad .net)policies)state)vietnam)seaareas.htm LonlineM LAccessed? 4 !ep 3013M Uncertainty remains, 36 8arch 3013 Availa le from? http?))news.vneconom*.vn)30130636110943580=0C6)uncertaint*-remains.htm LonlineM LAccessed? 4 !ep 3013M Saigon-gpdaily-Society, 13 April 3013 Availa le from? http?))www.saigongpdail*.com.vn)National)!ociet*)3013);)100536) LonlineM LAccessed? 4 !ep 3013M '()*(( +, %#( -+V(*N (N%, ./ 0uly 1222 Availa le from? http?))www.dpi.hochiminhcit*.gov.vn)invest)html)law4.html LonlineM LAccessed? 4 !ep 3013M Thomas J. Treutler and John ", !eptem er 3005. '+&N- $US&N(SS &N V&(%N4 Availa le from? http?))taglaw.com)files)+oing1309usiness130<uides)+oing1309usiness 130in130Vietnam.pdf Lonline LAccessed? 4 !ep 3013M )+ 5(%&%&V( 4'V4N%4-(S 6 ( (*-&N- 4*"(% , no date Availa le from? http?))www.investinvietnam.vn)lng)3)detail)3549)"merging-8arket.asp> LonlineM LAccessed? 4 !ep 3013M &$' (2010) F!tatistical 2ear ook 3010G &$' (2012) F!tatistical 2ear ook 3013G Vuong oan hu)en (2010) "conomic for sea transportation +oan hi ,hin (2005) FVietnam Transport +evelopment and challengesG, reported at the '+A "valuation on Aug 10-11 6rost 7 $ulli#an (2008) Vietnam transportation and logistic? Challenge I opportunities &eoEngineer (nc !$A (200B) <eolog* condition for Vietnam Vinamarine (2005) Van ,hong3 The Vision of Centur* +rewr) $hi""ing Consultant (2008) Caimep Container 8arket !tud* V* Economic times (2010) 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
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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 relati#e im"ortance of moti#ating factors. 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 a out the legal procedures relating to su mission for international container port investment certificate into VietnamH
2,

 Complicated "as* 4. &hich local costs, foreign investors ma* consider when deciding to invest in international container port field into Vietnam Aa or cost =reparation costs $legal, feasi ilit* 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 suita le for international container port development, no serious risks $like volcano, earth:uake, t*phoon, floodK% will impact to *our investmentH 2es, it is suita le 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.

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