US contributes to easing congestion at Vietnam’s busiest container port

The plan will be carried out in collaboration with the General Department of Vietnam Customs (GDVC), based on a pre-feasibility study on the Anti-Congestion and Facilitating Trade Logistics project at Cat Lai Port conducted by the USAID Trade Facilitation Program between May 2020 and March 2021, as unveiled at a workshop Thursday.

The study takes a comprehensive look at the operations of the terminal, the largest and most modern international container port in Vietnam that spreads over 160 hectares and is connected to National Highway 1 and HCMC- Long Thanh – Dau Giay Expressway.

The action plan offers 21 recommendations, ranging from leveraging information-technology solutions to enhancing information flow and cargo clearance, to upgrading the port’s facilities and improving its operational performance.

“As international trade recovers from the impacts of Covid-19, addressing congestion at Cat Lai Port has become a priority. When implemented, the anti-congestion measures identified at today’s workshop will facilitate international trade, contributing to Vietnam’s competitiveness both in the region and in the world,” said Mai Xuan Thanh, GDVC deputy director general.

Ann Marie Yatishock, mission director at USAID Vietnam, said: “Easing congestion at Vietnam’s ports will become increasingly important as trade rebounds in the post-Covid-19 environment.”

Approximately 4.9 million 20-foot containers are handled in HCMC each year, which equates to about three million trucks, or more than 8,000 trucks per day transiting in and around the city to discharge or load containers from the port area.

Tan Cang-Cat Lai Terminal handles over 92 percent of this volume and roughly half of the country’s total container volume.

Carried out in the five years from 2018 to 2023, the $21.7-million USAID Trade Facilitation Program is supporting Vietnam’s government to adopt a risk-management approach to customs and specialized inspection, strengthening the implementation of the World Trade Organization’s Trade Facilitation Agreement.

The program works with the GDVC to standardize customs procedures, strengthen national and provincial coordination, and build the capacity of customs officials to improve Vietnam’s trade and investment environment.