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Vietnam’s seaport industry is expected to witness robust growth this year due to active import and export activities and being an attractive destination for foreign direct investment (FDI) inflows. The volume of goods transported through Vietnamese seaports in 2022 is projected to reach 750 million tonnes, up by about 3 per cent over last year, ACB Securities Ltd. (ACBS) said.
Enterprises in the sector will also benefit from higher handling fees.
ACB said transportation activities are expected to remain stable in 2022, with the volume of goods up by about 6 per cent, according to Vietnamese media reports.
Vietnam’s seaport industry is expected to see robust growth this year due to active import and export activities and being an attractive destination for foreign direct investment inflows. The volume of goods transported through Vietnamese seaports in 2022 is projected to reach 750 million tonnes, up by 3 per cent over last year, ACB Securities Ltd. said.
The industry’s growth is driven by the recovery and reopening of the global economy thanks to the higher COVID-19 vaccination rate, helping trading activities.
Vietnam is still an attractive destination for FDI inflows due to the disruption of the global supply chains and the wave of a production shift. The country also benefits from many free trade agreements.
FDI inflows into Vietnam recorded a compound growth rate of over 8 per cent in 2014-2020, boosting the volume of goods transported through seaports. In 2021, FDI capital is estimated at $31.15 billion, up by 9.2 per cent over 2020 figures.
The transport ministry is also submitting to the government a draft amendment to a circular on handling fees at Vietnamese seaports. Those fees will rise by 10 per cent in 2022-2024 depending on the port area, resulting in higher profits for seaport enterprises.
However, ACBS also pointed out challenges the industry is likely to face in 2022, including higher freight rates, which increase short-term risks.
Due to the scarcity of containers and congestion at major ports in the world, freight rates have surged, which reduces the number of goods circulating through seaports. Rising oil prices also push transportation costs higher, reducing shipping demand.
The continuing complexity of the COVID-19 pandemic still badly affects global supply chains, causing lower consumer demand and negatively impacting the workforce in the industry.
Despite the developments of COVID-19, Vietnamese seaport enterprises still witnessed outstanding growth in profits last year.
The fourth quarter business result of the Vietnam National Shipping Lines (VIMC) showed that its profit after tax reached 2.9 trillion VND in 2021, 14 times higher than that of 2020.
Its shipping volume was 23 million tonnes, reaching 121 percent of the plan. After many years of losses, VIMC’s shipping sector posted a positive performance in 2021, according to a news agency report.
Sixteen VIMC seaports have handled over 125 million tonnes of goods, up 13 percent compared to 2020.
VIMC’s port system has also developed 13 new routes for container shipping lines. The sector continues to be the most effective business activity of the company, accounting for 78 per cent of total consolidated profit.
Fibre2Fashion News Desk (DS)
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