Browse the complete Report on: Vietnam Shipping Report Q4 2010
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In the second half of 2010, there were further signs of catch-up investment in Vietnam's ports. In June, a contract was signed between the Gemalink Joint Stock Company and the Republic of Korea alliance Dealim-SAMWHA to develop the Gemalink Cai Mep Container Terminal. Based in the southern Ba Ria- Vung Tau province, the Cai Mep area is the loading location for around 70% of Vietnam's container volume. Work on the terminal was scheduled to start in August, with phase one of operations scheduled to start in 2013. The facility will have an annual capacity of 1.2mn 20-foot equivalent units (TEUs). Phase two is scheduled for completion in 2014 and will double the terminal's capacity to 2.4mn TEUs. The Gemalink Cai Mep Container Terminal is part of a much larger investment programme in Vietnam's ports. A US$4.5bn government investment plan has been confirmed, and this has been followed by foreign companies, such as the Gemalink Joint Stock Company and Dealim-SAMWHA, looking to get a foothold in the country.
In October 2009, Japan's largest shipping company, Mitsui OSK Line (MOL), announced that it planned to set up a terminal operation company to build and manage a new container terminal at Cai Mep. BMI believes that expanding the county's port infrastructure has become necessary as there has been a huge growth in Vietnamese exports to the West. It is worth noting, however, that Vietnam has some way to go in developing its ports if it is to move away from being a country chiefly served by feeder services. Vietnam is ranked some way behind its neighbours in both the World Economic Forum's Global Competitiveness Report 2009-2010, where it is ranked 99th out of 133 countries in terms of its ports infrastructure, and in the World Bank's Logistics Performance Index, where it comes in 53rd place, while its neighbours Singapore and Malaysia are placed second and 29th respectively.
The local ports and shipping industry is set to benefit from economic growth. BMI believes that in the run-up to the National Congress of the Communist Party of Vietnam, due to be held in January 2011, the authorities will be particularly concerned to keep the economy and foreign trade growing. With evidence of a consumer boom emerging, we recently boosted our GDP growth forecast for this year to 6.0% (up from 4.4% earlier). Over the next five years, we are predicting that growth will come out at a vigorous annual average of 6.2%.
BMI is projecting an increase in volume at the Port of Ho Chi Minh City (also known as SNP, Saigon New Port), up by 6.2%, after the 5.2% contraction during the slump last year. At Da Nang Port (DNP) we see this year's volume gaining by 2.3%. Container throughput will also be in positive territory at both ports, up by 3.5% at SNP, and by 6.2% at DNP (where container volumes are much smaller). In real terms, Vietnam's total trade (imports + exports) fell by 14.5% last year, reflecting the impact of the global recession. BMI is predicting a recovery this year with 5.4% growth, followed by a slightly stronger pick-up in 2011, with 6.2% growth. Over the next five years, we calculate that total foreign trade will expand at an annual average rate of 6.5%, just ahead of the growth of the economy as a whole (+6.2%). Over this period, exports will grow at an average per annum rate of 7.3%, ahead of imports at 5.9%. We expect Vietnam to continue to run a balance of trade deficit throughout our five-year forecast period running to 2014.
There are a range of downside risks to our shipping and port forecasts. Overheating is one of them, with the possibility of the trade deficit and inflation both rising too sharply and then having to face a sharp correction. However, for the moment strong inflows of foreign direct investment are helping as a counterweight on the foreign payments front, and also playing a role in improving the country's stretched infrastructure. Power shortages are another related risk. On the political front, the government may find itself hard pressed to calm nationalist, anti-Chinese sentiment, as well as demands for political liberalisation. Ahead of the National Congress, the authorities may be a little jumpy.
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Original Source : – Vietnam Shipping Market
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In the second half of 2010, there were further signs of catch-up investment in Vietnam's ports. In June, a contract was signed between the Gemalink Joint Stock Company and the Republic of Korea alliance Dealim-SAMWHA to develop the Gemalink Cai Mep Container Terminal. Based in the southern Ba Ria- Vung Tau province, the Cai Mep area is the loading location for around 70% of Vietnam's container volume. Work on the terminal was scheduled to start in August, with phase one of operations scheduled to start in 2013. The facility will have an annual capacity of 1.2mn 20-foot equivalent units (TEUs). Phase two is scheduled for completion in 2014 and will double the terminal's capacity to 2.4mn TEUs. The Gemalink Cai Mep Container Terminal is part of a much larger investment programme in Vietnam's ports. A US$4.5bn government investment plan has been confirmed, and this has been followed by foreign companies, such as the Gemalink Joint Stock Company and Dealim-SAMWHA, looking to get a foothold in the country.
In October 2009, Japan's largest shipping company, Mitsui OSK Line (MOL), announced that it planned to set up a terminal operation company to build and manage a new container terminal at Cai Mep. BMI believes that expanding the county's port infrastructure has become necessary as there has been a huge growth in Vietnamese exports to the West. It is worth noting, however, that Vietnam has some way to go in developing its ports if it is to move away from being a country chiefly served by feeder services. Vietnam is ranked some way behind its neighbours in both the World Economic Forum's Global Competitiveness Report 2009-2010, where it is ranked 99th out of 133 countries in terms of its ports infrastructure, and in the World Bank's Logistics Performance Index, where it comes in 53rd place, while its neighbours Singapore and Malaysia are placed second and 29th respectively.
The local ports and shipping industry is set to benefit from economic growth. BMI believes that in the run-up to the National Congress of the Communist Party of Vietnam, due to be held in January 2011, the authorities will be particularly concerned to keep the economy and foreign trade growing. With evidence of a consumer boom emerging, we recently boosted our GDP growth forecast for this year to 6.0% (up from 4.4% earlier). Over the next five years, we are predicting that growth will come out at a vigorous annual average of 6.2%.
BMI is projecting an increase in volume at the Port of Ho Chi Minh City (also known as SNP, Saigon New Port), up by 6.2%, after the 5.2% contraction during the slump last year. At Da Nang Port (DNP) we see this year's volume gaining by 2.3%. Container throughput will also be in positive territory at both ports, up by 3.5% at SNP, and by 6.2% at DNP (where container volumes are much smaller). In real terms, Vietnam's total trade (imports + exports) fell by 14.5% last year, reflecting the impact of the global recession. BMI is predicting a recovery this year with 5.4% growth, followed by a slightly stronger pick-up in 2011, with 6.2% growth. Over the next five years, we calculate that total foreign trade will expand at an annual average rate of 6.5%, just ahead of the growth of the economy as a whole (+6.2%). Over this period, exports will grow at an average per annum rate of 7.3%, ahead of imports at 5.9%. We expect Vietnam to continue to run a balance of trade deficit throughout our five-year forecast period running to 2014.
There are a range of downside risks to our shipping and port forecasts. Overheating is one of them, with the possibility of the trade deficit and inflation both rising too sharply and then having to face a sharp correction. However, for the moment strong inflows of foreign direct investment are helping as a counterweight on the foreign payments front, and also playing a role in improving the country's stretched infrastructure. Power shortages are another related risk. On the political front, the government may find itself hard pressed to calm nationalist, anti-Chinese sentiment, as well as demands for political liberalisation. Ahead of the National Congress, the authorities may be a little jumpy.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
Original Source : – Vietnam Shipping Market
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