ICD Vinh Phuc Logistics Center applies the most advanced technology in Asia, with an investment of more than 3,800 billion VND, on an area of 83 ha.
On the afternoon of November 14, through online work, Prime Minister Nguyen Xuan Phuc and Singapore Prime Minister Ly Hien Long pressed the button to launch ASEAN smart logistics network, with the first project being Vinh Phuc ICD Logistics Center. (SuperPort). The event is part of the agenda at the 37th ASEAN Summit and related high-level meetings taking place on November 12-15.
ICD Vinh Phuc Logistics Center is invested by a consortium of T&T Group and YCH-YCH Holdings (Singapore). Located in Huong Canh town and Son Loi commune, Binh Xuyen district, the project has an investment capital of nearly 200 million USD, a scale of 83 hectares, a design capacity of goods through about 530,000 TEU.
Superport is expected to help transport goods quickly by road and rail; Shipping to seaports and airports in a short time. The project promotes trade between Vietnam, ASEAN, China and international markets, and establishes a human resource training center for the 4.0 high-tech logistics supply chain.
Speaking at the event, Prime Minister Nguyen Xuan Phuc highly appreciated the cooperation between T&T Group and YCH Group, especially in the context of Covid-19 disrupting global production. The cooperation between the two sides demonstrates the spirit of ASEAN cohesion, proactive, adaptive and creative thinking between businesses that took place during the 37th ASEAN Summit and related high-level conferences. ICD Vinh Phuc Logistics Center is a pink brick contributing to building the bridge of ASEAN cooperation and friendship connection between Vietnam and Singapore.
Singapore Prime Minister Ly Hien Long said that the two countries have strong business links. Singapore is the partner with the top proportion of investment in Vietnam in 2019. “Despite the pandemic, YCH Group and T&T Group still have a common voice to implement YCH’s largest logistics project in Vietnam. This project helps strengthen the supply chain in the region, supports economic integration efforts as well as initiatives in the ASEAN Connectivity Master Plan ” Mr. Ly Hien Long said.
ICD Vinh Phuc Logistics Center has four main pillars of connectivity, sustainability, speed and scalability. The 5 objectives of the project are to build sustainable infrastructure, smooth logistics with international centers, reduce costs for businesses, increase supply chain competitiveness and train human resources.
With the advantage of location, connecting infrastructure and the application of 4.0 technology and advanced technologies in operation, the project is expected to help remove bottlenecks in time pressure, transportation, and optimization. increase costs and increase the value chain of goods, increase the competitiveness of businesses.
The ASEAN Smart Logistics Network is a cooperative platform to promote sustainable growth based on modern logistics infrastructure, aiming to support the ASEAN Connectivity Blueprint 2025. The network will help strengthen ASEAN’s competitiveness through road, rail, and sea connections; Improve supply chain efficiency. Thereby, it helps to reduce supply chain costs in each member country, and improve the speed and reliability of the supply chain of each country in the region.
The deployment of ICD Vinh Phuc logistics center is expected to make a step forward for Vietnam’s logistics industry. Mr. Do Quang Hien, Chairman of T&T Group, said that the project contributes to the target by 2025, logistics costs will be reduced by 14% and by 2025, approximately Singapore is at 8-10%.
“T&T Group believes that the companionship of ASEAN governments and businesses will develop green logistics based on innovation, advanced technology, high productivity and industry 4.0, thereby enhancing competitiveness, to a united, resilient and overcoming ASEAN “, Mr. Do Quang Hien emphasized.
According to the Vietnam Logistics Business Association (VLA), the growth rate of the logistics industry in recent years has reached about 14-16%, with a scale of 20-22 billion USD per year, accounting for nearly 20.9% of GDP. country.
Experts say that it is located in the heart of the Asia-Pacific region for sea and air transport, but Vietnam’s logistics services are developing slowly, with high domestic production costs, and limited revenue. attracting foreign investment, reducing the competitiveness of domestically produced goods. According to the Ministry of Industry and Trade, in 2019, the proportion of the logistics industry’s contribution to GDP is only 4-5%, the operation is single, lacks the connection throughout to provide integrated logistics services, there are not many enterprises. to apply highly integrated solutions.
The World Bank (WB) in Vietnam also pointed out that, in 2017, logistics costs as a proportion of GDP in Vietnam were about 18-20%, nearly double that of developed and high economies. more than 4% of the global average, even nearly three times that of countries like the US or Singapore. The cost of logistics in our country still accounts for a high proportion in the business cost structure of the enterprises. Therefore, building a high-tech logistics center is an essential condition for industrial production, helping to reduce trade costs, increase stability for businesses, and contribute to promoting trade growth in countries. family.
Before that, during his visit with Prime Minister Nguyen Xuan Phuc to visit and work officially in Singapore in April 2018, Mr. Do Quang Hien visited the Supply Chain City Company of YCH Group. It is considered as a miniature “silicon valley” for logistics and an important supply chain of Singapore.
After the visit, within the framework of the ASEAN Business and Investment Summit (ABIS) 2018, T&T Group and YCH Group “shook hands” to invest and develop the ICD Vinh Phuc Logistics Center.