FROM LOGISTICS, HIGHWAYS TO AIRPORTS
On September 14, the SuperPortTM Vietnam ICD Logistics Center in Vinh Phuc – the first “super port” of the smart logistics network in the ASEAN region – unveiled its new vision for Vietnam. The joint venture between YCH Group (Singapore) and T&T Group (Vietnam) is located in Vinh Phuc Province and aims to become a crucial hub connecting the supply chain between China and Southeast Asia, with a net-zero emission goal by 2040. Mr. Tran Duy Dong, Chairman of the Vinh Phuc People’s Committee, expects the project to enhance logistics services, improve customs clearance for domestic goods, and reduce costs and time for cargo clearance and transportation.
Just a few days earlier, in early September, T&T Group commenced the construction of the Nam Phuc Tho Industrial Cluster Phase 1. With a scale of 41.7 hectares and a total investment of VND 780 billion, this is the largest industrial cluster in the capital to date, aiming for sustainable development and a “pioneer in developing a clean industrial cluster.”
Instead of investing in a single sector, T&T Group is expanding its ambitions towards diverse infrastructure projects, demonstrating a consistent strategic vision to build its own “infrastructure ecosystem” – something that only a handful of Vietnamese private enterprises have achieved so far.
In July, the T&T – Cienco4 investor consortium and Quang Tri Province began construction on the Quang Tri Airport project, with a total investment of over VND 5,800 billion. This is the second privately-invested airport, after Van Don (Quang Ninh) – the country’s first PPP airport. Notably, before Quang Tri, after more than five years of Van Don Airport being in operation, no other airport has successfully implemented investment through the PPP model. The door for private investors in airports is very narrow, but the construction of Quang Tri Airport demonstrates T&T Group’s strong determination.
Mr. Do Quang Hien, Founder and Chairman of the T&T Group’s Strategic Committee, has repeatedly expressed his desire to contribute to Quang Tri, a sacred land with numerous historical sites associated with the wars. Investing in Quang Tri Airport is not just about promoting socio-economic development but also about continuing the legacy and showing gratitude to this heroic land. It will not only connect the people of Vietnam to the sacred land of Quang Tri but also attract investors to the area, helping to “open the skies” and propel Quang Tri forward.
It is not a coincidence that within just two months, T&T Group has consecutively commenced two infrastructure projects with scales ranging from hundreds of billions to thousands of billions of VND. Recognizing infrastructure as one of its core business areas, the group has focused its resources on investing in this sector. Demonstrating agility, T&T was present during the privatization of several large transportation companies in 2015-2016 and is now a major shareholder of Quang Ninh Port, a deep-water port located in the key economic region of Northern Vietnam.
Regarding key highway projects, T&T Group is the investor in the Bao Loc – Lien Khuong (Lam Dong) expressway project and the only private investor interested in the third component project of Hanoi’s Ring Road 4 as of now.
OPENING THE “NARROW DOOR” FOR PRIVATE ENTERPRISES
Despite such determination and aspiration, investing in infrastructure remains a “narrow door” for private investors. For instance, the Bao Loc – Lien Khuong expressway project, which began in 2021, has yet to resolve issues between the province and the investor regarding revenue-sharing mechanisms, the ratio of state investment, legal procedures, compensation policies for site clearance, and funding for resettlement area infrastructure development. According to a representative of T&T Group, the investor consortium has always demonstrated its determination since being assigned the project, but they need to find the “right path” to implement it successfully.
According to PGS.TS Tran Chung, Chairman of the Vietnam Association of Road Traffic Infrastructure Investors (VARSI), private investors strongly desire to minimize adverse risks during project implementation and operation. In essence, attracting private investment in the public-private partnership (PPP) model must balance the interests of three entities: the state, private investors, and the people. While the PPP Law has resolved some significant bottlenecks, practical experience suggests that a balanced equilibrium of interests has not been achieved, with investors often bearing a disproportionate share of disadvantages.
“Private investors want to contribute alongside the state and desire a level playing field as a partner with the government. However, government agencies tend to assume a managerial role rather than a partnership approach, as evident in the current BOT projects’ challenges, which have been discussed for years without resolution, while enterprises struggle with mounting debts and interest payments,” said PGS.TS Tran Chung.
According to the expert, one of the significant challenges for private enterprises is capital. Infrastructure projects require substantial capital and long-term loans. Therefore, establishing the Infrastructure Development Investment Fund is necessary to provide preferential interest rate capital for investors.
In reality, the difficulty in attracting private enterprises to invest in large-scale infrastructure projects worth thousands of billions of VND is not only due to previous mechanism shortcomings, such as the state’s contribution not exceeding 50% and risk-sharing ratios, but mainly because of the capital challenges that investors face. Currently, this capital primarily relies on credit from commercial banks in Vietnam.
The Green Revolution: SuperPort Vietnam’s Net-Zero Emissions Pledge and Regional Supply Chain Connectivity Drive
On September 14, with the attendance of provincial leaders, members of the ASEAN Business Advisory Council (ASEAN BAC), and prominent association and business leaders in the region, SuperPort Vietnam, a joint venture between YCH Group (Singapore) and T&T Group (Vietnam), unveiled its “New Vision for SuperPortTM Vietnam.”
“The $166 Million ‘Super-Hub’: Connecting 20 Industrial Parks to Major Sea and Air Ports”
A Bold Vision for Seamless Supply Chain Connectivity Across China and Southeast Asia with a Net Zero Pledge by 2040.
Recently, SuperPort Vietnam, a joint venture between YCH Group (Singapore) and T&T Group (Vietnam), unveiled its new vision for the future.
The Top 10 Locations Proposed for a Free Trade Zone in Da Nang
The proposed sites for the free trade area, ranging from over 50 hectares to 400 hectares, are primarily located in Hoa Vang district and Lien Chieu district of Da Nang city. This strategic move is set to revolutionize the economic landscape of the region, offering a host of benefits and opportunities for businesses and investors alike. With its convenient location and ample space, this free trade area is poised to become a thriving hub of commercial activity, fostering innovation, collaboration, and prosperity for all involved.
The World’s Leading Economy Shares 4 Investment Opportunities in Vietnam, Including a Sector Worth Over $6 Billion
“Vietnam, the so-called “Tiger Cub Economy” of Southeast Asia, boasts immense growth potential. With a thriving landscape of dynamic businesses and a vibrant culture, it’s primed to roar ahead. The country’s resilient spirit and diverse strengths across sectors position it as an emerging powerhouse, ready to pounce on opportunities and take center stage in the region’s economic narrative.”
