Development of Vietnam’s Prospects for Vietnam’s

Maritime Economy’s
seaport system policies Maritime Economy
Concept and Objectives
Development

1 3 5
Table of
content 2 4

Vietnam’s current Free trade agreements

Maritime economy fuel growth of seaport
operators

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1.Concept
Maritime economics demystifies the
organization and functions of the shipping
market, covering transport rationale,
structure, pricing, finance, cycles, returns,
survival tactics, design drivers, and
forecasts.

Macroeconomics examines shipping's historical

evolution and global impact, diving into both its
role in sea transport and the market's economic
structure.

Micro-economics explores the nuts and bolts of

shipping companies: costs, financing, and ROI
 1.Objectives
Economic Growth and Development

Resource Security and Sustainability

Geopolitical and Strategic Significance

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 Objectives

Economic Resource Geopolitical and

Growth and
Development
-Increase GDP contribution
-Create jobs
-Attract foreign investment
-Promote trade and exports
-Diversify the economy
Security and
Sustainability
-Ensure food security
-Secure energy resources
-Extract valuable minerals
-Protect marine biodiversity
Strategic
Significance
-Strengthen maritime security
-Expand geopolitical influence
-Promote sustainable ocean
governance
Main roles
Ocean Power: Policy unlocks sea-driven growth, thriving industries, and a
protected planet.

Waves of Wealth: Investments unleash ocean's riches, creating jobs, ports, and
sustainable bounty.

Prosperity & Planet in Harmony: The maritime policy navigates a future where
prosperity and sustainability coexist. Economic pursuits dance with
environmental protection and social inclusivity, making the ocean a driving force
for a thriving and equitable society.

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 2.Vietnam’s current
maritime economy
Vietnam, a Southeast Asian nation, stretches for an impressive 3,260 kilometers
(2,025 miles) along the South China Sea, making it a true coastal champion.
Here's a closer look at Vietnam's coastal character by the numbers

Nationwide Reach: With 286 ports dotting its coastline,

Vietnam boasts a comprehensive port network, connecting
every region from north to south.

Regional Hubs: Large ports like Hai Phong (50 ports) and Ho Chi
Minh City (43 ports) serve as economic anchors, driving growth in
surrounding areas.

Global Giants: Upgraded ports like Cai Mep and Tan Cang cater
to super-heavy vessels, solidifying Vietnam's position as a key
player in international trade.

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 According toNguyen Xuan Ky,
CMIT’s General Director and
Secretary General of the ASEAN
Ports Association:

Southern Gateway: For a decade, Cai Mep-Thi Vai has been the economic portal for Vietnam's south, attracting over
⚡
30 ships daily with speedy service. (Imagine a bustling port with container ships loading and unloading.)

Regional Powerhouse: Cai Mep's success reflects Vietnam's maritime ambition, fueling regional growth and making it a
global trade leader. (Imagine a map of Vietnam with prominent port locations, with Cai Mep standing out.)

Constant Upgrades: Vietnam's port network keeps evolving, boosting capacity and service quality to stay ahead
of the curve. (Imagine a graph showing a steady upward trend in Vietnam's port capacity.)

Global Hub: This deep-water port serves as a key international transshipment hub, solidifying Vietnam's maritime
prowess. (Imagine a map highlighting Cai Mep as a central point with shipping lines radiating outwards.)
Results
Cargo on the Rise: Vietnam's ports are busting with activity! They've been
swallowing up an average of 10% more cargo each year, reaching a whopping
734 million tons last year. That's like stacking the Empire State Building over
150,000 times in containers!

Giants Welcome: Big ships? No problem! Vietnam's ports are getting ready for
the biggest vessels on the ocean. Ba Ria-Vung Tau can handle monsters over
200,000 Deadweight Tonnage (DWT), while Hai Phong welcomes giants up to
145,000 DWT. Think massive cargo ships the size of cruise liners!

Service with a Smile: Not just bigger, but better! Vietnam's ports are upgrading
their services thanks to smart investments. Port operators and shipping lines are
pouring in the cash, making sure your cargo gets where it needs to go smoothly
and efficiently.

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According to Le Quang Trung, Vice President of the
Vietnam Association of Logistics Businesses and Deputy
General Director of the Vietnam National Shipping Lines

Logistics Booms: For years, Vietnam's logistics sector

has been a rockstar, growing at a steady 14-16% and
fueling 4-5% of the nation's GDP. It's a reliable
engine driving the economy!

Maritime Leads the Way: While roads hauled the most freight
in 2022, Vietnam's true transportation hero is the sea. A
whopping 89.9 billion tons of cargo sailed through its waters,
showcasing its dominance in shipping.

Ocean Trade Lifeline: Vietnam leans heavily on maritime

trade, with 90% of its goods traveling by sea. It's a vital
artery connecting the country to the global market.
 3. Development of Vietnam’s
seaport system policies
Seaports Take Center Stage: Recognizing its
reliance on import and export, Vietnam prioritizes
seaport and logistics development. A master plan
envisions a modernized and efficient port system
by 2030, boosting cargo and passenger volumes
while prioritizing environmental protection and
national security.

Cargo Boom on the Horizon: Expect to see

massive growth! The plan anticipates
handling up to 1.4 billion tons of cargo and
millions of containers annually, solidifying
Vietnam's position as a maritime
1.4 billion tons Millions of
powerhouse. of cargo containers

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3. Development of
Vietnam’s seaport
system policies Vietnam's master plan prioritizes investing

1 in key international ports (Lach Huyen, Cai

Mep, Van Phong) and developing Mekong
Delta access (Tran De).

It categorizes 36 ports into five groups with

2 projected cargo and passenger volumes by

2030. The plan also estimates a hefty $12.8
billion budget for modernization.

The plan categorizes the seaport system into four

types in terms of scale and function:

3 Hai Phong and Ba Ria-Vung Tau seaports are

special ones. The rest of seaports include Class I
seaports (15), Class II seaports (six), Class III
seaports (13).
 4. Free trade agreements fuel growth of
seaport operators
Free trade agreements fuel growth of seaport operators
The volume of cargo going through seaports has been on the increase thanks to
free trade agreements (FTAs) .

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Impact of
FTAs on the
seaports
operators

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 Impact of FTAs on the
seaports operators

Free Trade Agreements (FTAs) have been a game-changer

for Vietnam's economy. Since 2007, export turnover tripled,
reaching $264 billion in 2019. FTAs also attract foreign
investment, with FDI skyrocketing from $5 billion in 2006 to
$20.38 billion in 2019. This boost in exports and investment
has fueled GDP growth and poverty reduction.

One concern, however, is Vietnam's dependence on the

world market. The high ratio of exports to GDP leaves the
economy vulnerable to global economic downturns.
However, FTAs provide a silver lining, encouraging more
balanced import-export systems and improved business
environments.
 Vietnam’s import and export turnover, Balance of Trade in the period of 2012 to 2019

In 2019, the average tax rate of tariff lines committed to reduce and fluctuate
between 0.07% to 9.1%, of which the lowest tax rate is ASEAN (0.07%) and the
highest is CPTPP (9.1%).
To 2022, the average of tariff lines committed will decrease, fluctuating between
0.04% and 4.8%.
=> As a result of reducing tax through FTAs, Vietnam's export has gained many
achievements in recent years
 2 VCCI - CPTPP
VCCI sees CPTPP boosting Vietnam's maritime economy
through:
Two key FTAs Market access: Tariff cuts and elimination on maritime
exports, opening new routes and services.
Increased trade: 15-20% growth projected within 5
years, benefiting shipping and ports.
Foreign investment: Improved business environment
attracts investment in infrastructure and logistics.

1 EVFTA
Demand Surge:
Lower tariffs under the FTA will likely boost EU-to-
Vietnam shipping of machinery and appliances.
Vietnamese clothing and footwear exports to the
EU will see slower tariff reductions, delaying their
shipping surge.
EU Investors' Opportunity:
The FTA opens Vietnam's maritime market to EU
companies, allowing them to offer logistics services
like cargo handling and warehousing.
 5.Prospects of Vietnam’s Maritime
economy
The compound growth rate of Vietnam’s logistics market along with the strong recovery of
the economy: Vietnam's logistics surges - 5.5% annual growth predicted on economic
rebound, fueled by 30,000+ firms, digital trends, and strong GDP. Emerging logistics hub
poised for international connections.

The boom of e-commerce :$14 billion market + 29% growth by 2025. Shopee, Lazada & Tiki
driving warehouse investment & modern supply chain management.

The positive influence of e-Logistics on the Vietnam Logistics industry : E-Logistics has
promoted Vietnam’s logistics industry to improve service quality more professionally and
effectively. Modern logistics in the world today has developed into 4PL (Logistics Chain) and
5PL (E-logistics, logistics based on e-commerce).

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 Some goals are set under Decision
dated February 14, 2017, on approval of
5.Prospects of the Action Plan to improve
Vietnam’s competitiveness and develop logistics
Maritime economy services in Vietnam by 2025.

80 billion market by 2025, fueled

by 15-20% annual growth.

Vietnam aims to trim logistics

costs to 16-20% of GDP by 2025.

By 2025, the rate of outsourcing

logistics services will reach 50-60%

LPI Ranking: Ranked by LPI in the

world to reach 50th or higher by 2025
Solutions for
Vietnam’s
maritime
economy
development