Hai Phong has potential to be logistics hub of Vietnam, says CBRE

HANOI (Feb 2): Hai Phong, Vietnam has the potential of becoming a major logistics hub of Vietnam, according to global commercial real estate service firm CBRE (Vietnam) Co Ltd.

“Hai Phong has both the foundation and opportunities to grow and realise the potential of becoming a major logistics hub of Vietnam and, in the future, a connecting dot in regional and global logistics network,” noted CBRE in a recently-issued statement.

However, the firm reckons that Hai Phong has a few issues to be addressed before it can move to the next level.

Citing the World Bank’s Ease of Doing Business 2014 Report, CBRE said Hai Phong ranked 34 among 63 cities and provinces. The notable issues highlighted to be improved on for Hai Phong’s business environment were transparency, infrastructures and labour quality.  

“Therefore, in order to become a local hub in the near future and a regional hub in the long run, it is critical that Hai Phong address the issues of administrative procedures, transparency, as well as pay attention to improving labour quality as growing foreign direct investment is poured into the country, the city and its infrastructures,” CBRE noted.

The report also showed that the lack of fully-integrated infrastructure is the main reason that Hai Phong’s logistics have not performed to its full capacity. 

Ho Chi Minh City and Hai Phong have two of the most important seaports in Vietnam.

Hai Phong’s throughput capacity increased by 88% from 2008 to 2014, while Ho Chi Minh City’s increased by 105%.

“Hai Phong, with advantages in location and with over 100km of coastal line, has the potential of a rising logistics hub domestically at the current stage, as well as regionally in the future,” CBRE report showed.

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