The $4.8 Billion Super Port: Vietnam’s Golden Opportunity

Major Step Forward for the Can Gio Super-Project

The Government Office has just issued a document conveying the directions of Deputy Prime Minister Tran Hong Ha regarding the approval of the investment policy for the Saigon Gateway International Transhipment Port project (Can Gio Port), based on the appraisal report on the proposal for approval of the investment policy from the Ministry of Planning and Investment.

Accordingly, the Deputy Prime Minister will chair a meeting to discuss the proposal for approval of the investment policy for this project as soon as possible.

To ensure the quality of the meeting’s content, the Deputy Prime Minister has requested the Ministries of Transport, Natural Resources and Environment, Agriculture and Rural Development, Foreign Affairs, and Defense, in accordance with their functions and tasks, to provide specific opinions on the recommendations and evaluations in the appraisal report of the Ministry of Planning and Investment.

The Deputy Prime Minister also requested that these ministries carefully study the legal provisions on investment, environment, land, forestry, and other relevant laws related to the approval of the investment policy. The opinions of the ministries must be sent to the Ministry of Planning and Investment before August 15th for synthesis and completion of the report for the Deputy Prime Minister before the meeting takes place.

The content of the proposal needs to clarify whether the project has met all the conditions and legal basis for the Prime Minister to approve the investment policy. The People’s Committee of Ho Chi Minh City is assigned to coordinate closely with the Ministry of Planning and Investment in completing this report.

Previously, the Ministry of Planning and Investment submitted Appraisal Report No. 5590/BC-BKHDT to the Prime Minister regarding the proposal for approval of the investment policy for the Saigon Gateway International Transhipment Port project.

The proposal for approval of the investment policy for the project was submitted to the Ministry of Planning and Investment for appraisal by the Saigon Port – TIL joint venture at the beginning of April 2023. Due to the special nature and scale of the project, the appraisal process was carried out with great caution, with the participation of 10 ministries, sectors, and the People’s Committee of Ho Chi Minh City.

The most notable point in Appraisal Report No. 5590/BC-BKHDT is the affirmation by the Ministry of Planning and Investment that there is sufficient political and legal basis to consider the decision on the investment policy for the project. Resolution No. 98/2023/QH15 included the project in the list of projects requiring the selection of strategic investors to promote the economic development of Ho Chi Minh City and the Southeast region.

The Ministry of Planning and Investment emphasized that if successfully implemented, the Can Gio Port project will enhance the potential of the current port system, support and maximize the potential of the Port Cluster No. 4 to become an international transhipment center, and affirm Vietnam’s position on the international maritime map as a major transportation and logistics hub in the region and the world.

“This project will also help Vietnam become an important link in the global supply chain, enhance its foreign relations, increase national competitiveness, and have significant implications for national defense, security, and maritime economy,” according to the Ministry of Planning and Investment’s assessment.

How Massive is the Can Gio Port Project?

The proposal for the construction of the Saigon International Transhipment Port aims to establish the port as an international transhipment center for Ho Chi Minh City and the region. This will attract shipping lines, carriers, cargo owners, and logistics service providers to participate in the global transportation supply chain.

In terms of location, the Can Gio International Port is expected to be located in the Con Cho islet area, Thanh An commune, Can Gio district, within the buffer zone of the Can Gio Mangrove Forest Biosphere Reserve, with no impact on the core zone. This area is isolated from neighboring areas and currently has convenient connections to maritime and inland waterways.

In the proposal for approval of the investment policy for the project, the Saigon Port – TIL joint venture proposed to implement the project with a total investment (excluding interest during the construction period) of VND 113,531.7 billion, equivalent to US$4.8 billion.

However, the Ministry of Planning and Investment recommended that the Prime Minister approve an investment capital of at least VND 50,000 billion, with the owner’s equity ensuring no less than 15% of the total investment capital of the project.

The total length of the main port bridge is expected to be about 7 km, and the barge berth is about 2 km. The total area is estimated at about 571 hectares, including the port bridge, warehouses, internal traffic, office area, accommodation for workers, port operation and management, infrastructure, etc.

The Can Gio International Transhipment Port will be able to accommodate the world’s largest container ships of 250,000 DWT, equivalent to 24,000 TEU (one TEU equals a 20-foot container), transhipment vessels with a capacity of 10,000 – 65,000 tons, and barges with a capacity of 8,000 tons. The port will cover an area of about 469.5 hectares, with a water area of about 101.5 hectares.

It is estimated that in the first year of operation, the port will handle about 2.1 million TEU of cargo. After seven investment phases, the volume of cargo handled by the Can Gio International Transhipment Port can reach 16.9 million TEU by 2047 – equivalent to half of Singapore’s current volume.

The port is expected to contribute VND 34,000 – 40,000 billion to the state budget annually when operating at full capacity. The total investment capital for the project is nearly VND 129,000 billion (US$5.5 billion), proposed by MSC Group – one of the world’s top container shipping companies.

Regarding the Can Gio International Transhipment Port, experts believe that this “gold mine”, which is expected to bring in VND 40,000 billion annually, will help the Saigon Port system advance towards the open sea, contributing to Ho Chi Minh City’s position as a leading logistics hub in the region and Asia, alongside Hong Kong (China) and Singapore.

At the same time, the most significant impacts and benefits of this port are its contribution to state budget revenue, job creation, infrastructure development in the surrounding area, and attraction of more large enterprises to invest and develop.

The early implementation of the project will be a breakthrough not only for Ho Chi Minh City but also for the Southeast region, as it forms an international-scale gateway for trade and commerce. The Can Gio Port is also expected to complement, rather than compete with, the Thi Vai – Cai Mep port system in Ba Ria – Vung Tau, forming a comprehensive port system for the region.

The Can Gio Port will enhance the Cai Mep port system, elevating the entire Port Cluster No. 4 to a national and international-level port, competing with the world. This cluster can only develop its full potential when combined for the benefit of the nation, not just for Ho Chi Minh City or the Southeast region. This will help realize Vietnam’s aspiration to become the gateway and forefront of the ocean era.

Moreover, the port cluster is not only significant as an international transhipment center but also as a supporting and complementary ecosystem for the development of a logistics center, especially a duty-free trade zone, with the vast land area from Soai Rap to the south.