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Opportunities and challenges for Logistics operations in Hai Phong

August 30, 2024 04:16 AM

Logistics is a crucial service sector that contributes significantly to the socio-economic development of a locality, a region, and the country. With a strategic geographical location, modern port system, integrated transportation infrastructure, and a multitude of businesses operating in this field, Hai Phong possesses immense potential and advantages for the growth of the logistics industry. […]

Logistics is a crucial service sector that contributes significantly to the socio-economic development of a locality, a region, and the country. With a strategic geographical location, modern port system, integrated transportation infrastructure, and a multitude of businesses operating in this field, Hai Phong possesses immense potential and advantages for the growth of the logistics industry.

However, to fully harness this potential and enhance the competitiveness of Hai Phong’s logistics sector, it is imperative to address and overcome numerous challenges while seizing opportunities arising from international economic integration.

1. Advantages for logistics development in Hai Phong

Hai Phong is considered the transportation gateway of the Northern region, connecting with other countries in the region and the world. The city boasts the largest seaport system in the North and the second-largest nationwide after Ho Chi Minh City.

According to statistics from the Hai Phong Maritime Administration, in 2021, the cargo throughput through Hai Phong’s seaport area reached 91.7 million tons, an increase of approximately 8% compared to 2020, of which container throughput reached 5.7 million TEUs, an increase of about 8.9%.

The seaports in Hai Phong are equipped with modern and safe facilities, complying with international commercial transportation standards. Notably, the Hai Phong International Gateway Port at Lach Huyen is the only deep-water port in the North, capable of accommodating large container ships, reducing transportation costs and cargo handling time.

Hai Phong holds a significant logistical advantage as the gateway to the North

Hai Phong holds a significant logistical advantage as the gateway to the North

Furthermore, Hai Phong possesses a well-developed and integrated transportation infrastructure system, including roads, railways, airways, and inland waterways, connecting with other localities domestically and internationally.

Expressways such as Hanoi – Hai Phong, Hai Phong – Ha Long, Hai Phong – Thai Binh, the Ninh Binh – Hai Phong – Quang Ninh coastal route, Tan Vu – Lach Huyen highway, Lao Cai – Hanoi – Hai Phong railway, and Cat Bi International Airport, etc. have been and are being invested in, upgraded, and expanded, facilitating the smooth flow of goods and passengers.

Hai Phong benefits from advantageous transportation connectivity

Hai Phong benefits from advantageous transportation connectivity

Moreover, Hai Phong is home to numerous businesses operating in the logistics sector, providing services such as transportation, loading and unloading, warehousing, customs clearance, insurance, and delivery. Several major companies like Saigon Newport Corporation, GSL, DH, Yusen, and Hai An have established modern logistics centers, meeting the demands of both domestic and international customers.

2. What Hai Phong needs to do to achieve a breakthrough in the logistics industry

Hai Phong still faces numerous limitations and significant challenges

Hai Phong still faces numerous limitations and significant challenges

Despite the numerous advantages of Hai Phong’s logistics industry, such as its strategic location near seaports and major consumer markets, it still faces significant limitations and challenges. To achieve sustainable development, overcoming these challenges is crucial. Here are some specific solutions:

2.1 Optimize transportation infrastructure

  • Investing in, upgrading, and expanding essential transportation routes is a top priority. In particular, transportation corridors need to be developed to connect seaports, industrial zones, and potential markets.
  • Constructing transfer stations, inspection stations, and toll stations enhances the safety, security, and efficiency of cargo transportation. Collaboration with other localities should also be promoted to establish inter-regional and international transportation routes.

2.2 Enhance warehouse quality

  • Developing warehouse zones and distribution centers is a crucial step in ensuring the convenience and safety of goods storage. It is essential to ensure that warehouses are built according to plan, with sufficient space and strategic locations.
  • Prioritize the construction of multi-purpose warehouses that can accommodate various types of goods, from food to industrial products. Utilizing information technology and management according to international standards will help optimize processes and enhance service quality.

2.3 Optimize freight costs

  • Seeking and implementing cost-saving solutions for transportation is a crucial part of optimizing logistics operations. Increasing the use of combined transportation modes and maximizing the capacity of transportation vehicles are effective ways to reduce costs.
  • Collaboration and partnerships between logistics companies, seaports, transportation providers, and import-export businesses are key to optimizing processes and minimizing unnecessary expenses. By providing quality services and ensuring customer satisfaction, the logistics industry can enhance its competitiveness in the market.

These solutions need to be implemented in a synchronized and coordinated manner among all stakeholders, from the government to businesses and local communities. Only through collaboration and joint efforts can the logistics industry in Hai Phong overcome challenges and achieve sustainable development in the future.

3. Gaw NP Industrial – A Trusted partner for numerous businesses

Gaw NP Industrial is a leading industrial real estate development project in Vietnam, born from the collaboration between two prominent names: Gaw Capital Partners and NP Capital. Gaw Capital Partners, a leading investment firm in Asia with total assets of nearly 35.2 billion USD, and NP Capital, one of the top real estate investment and development funds in Vietnam, have joined forces to create Gaw NP Industrial.

Gaw NP Industrial - a leading industrial real estate development project in Vietnam

Gaw NP Industrial – a leading industrial real estate development project in Vietnam

Gaw NP Industrial not only provides quality industrial real estate projects to the Vietnamese market but also aims to become a leading developer in this sector in Vietnam and even throughout the Asia-Pacific region.

The strengths of Gaw NP Industrial lie not only in the collaboration between two reputable partners but also include:

  • Strategic locations: GawNP’s projects are situated in strategic locations, optimized for business development. This attracts businesses interested in investing in industrial real estate.
  • High quality: Gaw NP Industrial is committed to ensuring the quality of construction and operation of industrial real estate. This builds trust and confidence from investors and businesses utilizing their services.
  • International connectivity: Gaw NP Industrial not only focuses on the domestic market but also connects with international networks, optimizing business opportunities and supporting businesses in expanding their operations into the international market.
  • Regional integration: Gaw NP Industrial understands and integrates with the local community, facilitating cooperative relationships. This helps them build strong and stable relationships with local partners and customers.

GNP Nam Dinh Vu - Ready-built warehouse in Hai Phong

GNP Nam Dinh Vu – Ready-built warehouse in Hai Phong

In conclusion, Gaw NP Industrial is not only a trusted partner for numerous businesses but also a vital resource in promoting the sustainable development of the industrial real estate sector in Vietnam and the region.

Gaw NP Industrial offers ready-built factory and warehouse projects for lease in potential industrial zones in the North, including:

GNP Nam Dinh Vu: Located in Dinh Vu – Cat Hai Industrial Park, Hai Phong City, with a total land area of 16.9 hectares, of which the total leasable area is over 101,000m2, meeting the diverse rental needs of businesses. The project has a strategic location near Hai Phong port, Lach Huyen deep-sea port,etc. convenient for businesses importing and exporting goods.

GNP Dong Van 3: Located in Dong Van 3 Industrial Park, Ha Nam province, with a total land area of 16 hectares, of which the total leasable area for ready-built factories and warehouses is about 100,000 m2. The project has synchronous and modern infrastructure, and is also close to important transportation routes such as National Highway 1A, Hanoi – Ninh Binh Expressway, and Hanoi – Ho Chi Minh City railway.

4. Conclusion

Hai Phong is presented with a significant opportunity to develop its logistics activities due to its strategic geographical location and the growth of its seaport. However, along with these opportunities come challenges such as improving transportation infrastructure, enhancing warehouse quality, and optimizing transportation costs. By addressing and overcoming these challenges, the logistics industry in Hai Phong can achieve sustainable development and contribute to the economic growth of both the locality and the nation.

See more:

9 factors to consider when renting a warehouse in HaiPhong

10 factors to consider when choosing a warehouse space for lease in Vietnam

Warehouse for lease in Vietnam | Warehouse for rent in Vietnam | Factory for lease in Vietnam | Factory for rent in Vietnam

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