Vietnam has stepped into the big port league in the last 18 months or so and the country’s rapid growth of containerised exports is changing shipping patterns in the region.
The terminals around Ho Chi Minh handled 90 percent of southern Vietnam’s 3.6 million TEUs last year. By 2012, that total will have jumped to almost five million boxes.
Vietnam has quickly emerged as a major manufacturer as shippers with heavy China production have moved to reduce their exposure on the mainland. Rising labour costs, labour shortages, power cuts in major manufacturing areas in the Pearl River Delta, high costs of raw materials – all have contributed to companies looking south for their outsourcing needs.
This has been a boon for the Southeast Asian nation that for years struggled under US sanctions and a clueless communist government. That government remains communist, except with capitalist characteristics. Just like China, where everyone is equal but some have more billions than others.
Demand for export volume in southern Vietnam, where the major manufacturing takes place, has overtaken the supply of port capacity. The country is opening up new deepwater berths as fast as possible and earlier this month even waved hello to the Mathilde Maersk, which at 9,000 TEU is the biggest vessel to call at a Vietnam port.
The giant ship called at the SP-PSA International Port near Cai Mep-Thi Vai that will be included in its direct US service. Neptune Orient Lines’ container unit APL began a direct service in June last year and the Grand Alliance of Hapag Lloyd, OOCL and NYK Line start their direct call service at Vung Tau this month.
The country is working with all the major global port operators and has plans to open five new deepwater terminals in the port complex by next year.
Vietnam is about to experience what China went through a few years ago. The growth in manufacturing has been so rapid that the infrastructure will not be able to handle the throughput, leading to delays and congestion.
This is leading to a frenzy of construction that in a couple of years will see berthing supply outstrip demand. But such is the growth of the industrious nation that any overcapacity will not be surplus for too long.