The “Super” Can Gio Port Project: A $4.5 Billion Venture
The Vietnamese Government, through the Office of the Government, has recently issued a notice regarding the $4.5 billion Can Gio Port Project. This notice conveys the conclusions of Deputy Prime Minister Tran Hong Ha from a meeting about the investment policy for the Saigon International Transhipment Gateway Port Project (as named in the planning documents as the Can Gio International Transhipment Port).
Deputy Prime Minister Tran Hong Ha has instructed the Ministry of Transport, the Ho Chi Minh City People’s Committee, and other relevant ministries and sectors to collaborate closely with the Ministry of Planning and Investment during the appraisal process of the project proposal as stipulated by the Law on Investment and related decrees. This ensures a rigorous, comprehensive, and authorized evaluation within the Deputy Prime Minister’s jurisdiction.
The Ministry of Planning and Investment and the Ho Chi Minh City People’s Committee are tasked with guiding and supporting the investor in refining the project proposal. This entails incorporating written feedback and suggestions from relevant ministries and agencies, as discussed during the meeting. Once the proposal is refined and completed according to legal regulations, it will be submitted to the Ministry of Planning and Investment for final appraisal and presentation to the Prime Minister for consideration and decision-making in September 2024.
The Can Gio Port Project is envisioned to span an area of 571 hectares with a total length of 7.2 kilometers. It will be capable of accommodating vessels with a capacity of up to 250,000 DWT (equivalent to 24,000 TEUs) and a maximum capacity of 16.9 million TEUs.
The project site is located on Con Cho Islet, in the commune of Thanh An, Can Gio District. This strategic location at the mouth of the Cai Mep- Thi Vai River, within the Ganh Rai Bay, offers proximity to international maritime routes passing through the East Sea. This advantage positions the port ideally for development as an international transhipment hub.
Can Gio Port Project Illustration.
With a total investment of over 113,500 billion VND (equivalent to more than $4.5 billion USD), the Can Gio Port Project is a joint venture between Saigon Port Joint Stock Company, Terminal Investment Limited Holding S.A. (TIL), and MSC, a leading global shipping company.
A Closer Look at the Consortium’s Capabilities
Terminal Investment Limited Holding S.A. (TIL) is a member of MSC, one of the world’s largest shipping lines. On the other hand, Saigon Port Joint Stock Company is a subsidiary of the Vietnam Maritime Corporation (Vinalines), specializing in port services and cargo handling. As of June 30, 2024, Vinalines held 65.45% of the voting rights in Saigon Port Joint Stock Company.
Vinalines boasts a diverse fleet of vessels, including container ships, bulk carriers, oil tankers, and other types of cargo ships. Their financial reports for the first half of 2024 indicate a substantial increase in revenue from the previous year, with a 33.6% surge in gross sales and services revenue, reaching 8,266 billion VND.
However, the sharp rise in cost of goods sold resulted in only a modest 3.5% increase in gross profit, totaling 1,412 billion VND. During this period, financial income increased by 28 billion VND, reaching 338 billion VND, while financial expenses decreased by 41 billion VND to 151 billion VND.
Profit from joint ventures and associates experienced a slight dip, settling at 69 billion VND. Selling and administrative expenses combined amounted to nearly 619 billion VND. As a result, net profit remained relatively unchanged from the previous year, standing at 1,050 billion VND.
Notably, Vinalines recognized a substantial other income of 836 billion VND in the first half of 2024, compared to just 68 billion VND in the same period last year. This surge was primarily driven by increased income from asset disposals (446 billion VND) and additional waived loan interest (over 382 billion VND).
After accounting for various taxes and fees, the company reported a net profit of 1,616 billion VND for the first half of 2024, reflecting a significant increase from the 901 billion VND profit recorded in the previous year.
As of June 30, 2024, Vinalines’ total assets were valued at 29,377 billion VND, representing a % increase compared to the beginning of the year. Short-term and long-term financial investments amounted to 6,793 billion VND, while investment real estate stood at 437 billion VND. This real estate portfolio includes the value of land-use rights at Cai Mep Port, the International Maritime Trade Information Center in Hanoi, and the Vimadeco Building in Ho Chi Minh City, which is currently leased.
The company’s total liabilities were 12,978 billion VND, an increase of 809 billion VND from the beginning of the year. Of this, total financial borrowings and lease liabilities amounted to 3,284 billion VND.
At an extraordinary general meeting held in July, several significant agenda items were approved, including a supplementary investment of 356 billion VND for financial restructuring at the Cai Lan International Container Terminal (CICT) – a joint venture between SSA (USA) and CTCP Dau Tu Cang Cai Lan, in which Vinalines holds a 56% stake.
In addition to the supplementary investment, the meeting also approved the addition of business lines and amendments to the company’s charter.
Two Industrial Park Projects Approved, Worth Nearly 3.2 trillion VND
Vice Prime Minister Tran Hong Ha has approved a significant investment decision for the development of the Chau Minh – Bac Ly – Huong Lam and Hung Phu Industrial Parks, totaling almost VND 3,200 billion. This first phase of development will focus on the Chau Minh – Bac Ly – Huong Lam Industrial Park in Bac Giang Province and the Hung Phu Industrial Park in Thai Binh Province, with a combined investment of nearly VND 3.2 trillion.
Appointing Key Leaders in the Ministry of Planning and Investment
On September 11, the Ministry of Planning and Investment announced 14 leadership appointments. This was a significant event, as these individuals will play a vital role in driving the ministry’s vision and shaping the future of the country’s economic landscape.
Unlocking the Potential: Embracing Flexibility in Port and Harbor Planning
The Government Office has issued Document No. 406/TB-VPCP dated September 5, 2024, announcing the conclusions of Deputy Prime Minister Tran Hong Ha at the meeting on the Detailed Planning for the Group of Seaports, Harbors, Piers, Moorings, Water Areas and Zones for the period 2021 – 2030, with a vision towards 2050.
Unlocking Energy Sector Potential: Clearing Hurdles for Flagship Programs and Projects
Vice Prime Minister Tran Hong Ha has urged relevant ministries, sectors, and local authorities to focus on resolving bottlenecks and accelerating the progress of key programs and projects in the energy sector. The emphasis is on expediting processes and finding solutions to any obstacles hindering the sector’s growth and development.
Unlocking Investment Potential: Deputy Prime Minister Demands Clear Timeline for Public Investment Capital Disbursement
Deputy Prime Minister Tran Hong Ha has instructed ministries, sectors, and localities to report on the review and classification of public investment projects. This includes ongoing projects with clear progress commitments and projects that cannot be implemented due to mechanism, policy, and legal obstacles.
