International Finance Corporation (IFC) announced it will partner with Singapore’s YCH Group and Viet Nam’s T&T Group to develop a “super port” in Viet Nam.
Located roughly 60 kilometres outside of Ha Noi in the northern province of Vinh Phuc, the Vinh Phuc Inland Container Depot (ICD) Logistics Centre (Vietnam SuperPort) project will be developed by T&Y Superport Vinh Phuc JSC, a joint venture between Singapore’s YCH Group and Vietnamese conglomerate T&T Group (sponsors). The project is set to be one of the country’s first ICDs with multi-modal facilities, including an international distribution centre and an inland port for rail connectivity and air transportation.
Over the next 12 months, IFC will help YCH Group and T&T Group develop a bankable and sustainable project by providing technical expertise, helping the developers mitigate risks and strengthen environmental and social standards. IFC will also support the sponsors in making the logistics hub’s infrastructure green and sustainable, supporting Viet Nam in its efforts to reach its net zero carbon emissions target by 2050.
IFC also has the right to act as lead arranger of long-term financing for the Vietnam SuperPort. Total investment capital for the project is expected to be over VND4.5 trillion (US$199 million).
The establishment of such a logistics hub in the North of Viet Nam will significantly improve the processing of domestic and international trade, reducing logistics costs and improving the country’s trade competitiveness as it aims to become a new regional supply-chain hub.
Do Quang Hien, Chairman of T&T Group, said: “We are confident that Vietnam SuperPort’s multimodal logistics hub built with cutting edge technology will reduce the cost of logistics and improve time to market, thereby improving trade connectivity to the world, boosting our economy as well as contributing to the symbiotic and sustainable growth of Viet Nam.”
“The partnership with IFC ensures bankable financial solutions to keep pace with the development of the ASEAN Smart Logistics Network (ASLN) and SGConnect (Smart Growth Connect). With the unwavering support of the key leaders and colleagues in ASEAN communities, we are confident that the establishment of ASLN and many more innovative initiatives will drive positive economic and social impacts to the overall ASEAN economy so that communities will continue to thrive,” said Dr. Robert Yap, Executive Chairman of YCH Group.
The facility is strategically located near local ports, Noi Bai International Airport, and border posts with China and Lao PDR. It is also situated within reach of 20 industrial parks, enabling it to become a supply chain hub for local manufacturing operations. The port is expected to capture roughly 10 per cent of the total container traffic generated in the country’s northern provinces once it comes into operation. — VNS