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Cargo throughput in July grew 2% y-o-y to 62.9 million tons; container throughput rose 1% to 2.2 million TEUs
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Vinamarine reported that while import and export volumes grew, domestic containerized goods contracted
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Economists said goods throughput at Vietnamese ports has not yet regained its growth momentum
Vietnamese seaports posted slim volume growth of 62.9 million tons in July, up 2% year-on-year, and 2.2 million TEUs of container cargo, up 1% y-o-y, reflecting a slow recovery from the COVID-19 impact, a local report said, citing the Vietnam Maritime Administration.
The Vietnam News online report on August 23 quoted Vinamarine as saying that while the volume of imports and exports increased, domestic containerized goods decreased slightly last month.
Economists said that growth of goods throughput at Vietnam’s seaports was still low and had not regained its momentum to levels before the COVID-19 pandemic, the report said.
They attributed the sluggish growth to the lingering consequences of the pandemic and the six-month-old Russia-Ukraine conflict, which put pressure on the global economy.
The economists said rising inflation amid the bleak growth prospect could have a significant impact on global consumer demand and goods transport. They noted that Vietnam, with an open economy, could hardly avoid these effects.
The report quoted Trịnh The Cưong, director of Da Nang Port Authority, as saying the more than 20% drop in domestic goods volume in the past three months indicated goods circulation in the region had not recovered after the pandemic.
The port and shipping industry is expected to rebound in the long term as export growth picks up in the second half of 2022 and the whole 2023, the report said, citing the Retail Research and Investment Advisory Division at Saigon Securities Inc.
The slow recovery in Vietnam’s ports also reflects congestion, particularly at Cat Lai Terminal, the country’s busiest cargo hub in the Port of Ho Chi Minh.
In May this year, the US Agency for International Development (USAID) and Vietnam Customs released an action plan for reducing congestion at Cat Lai Terminal.
Ho Chi Minh City handles around 4.9 million TEUs each year, with Cat Lai Port accounting for over 92% of this throughput and roughly 50% of the country’s total container volume.
The USAID action plan contains 21 recommendations to help position the port to meet growing demand, as measured by container volume, that is expected to double by 2030.
The five-year, US$21.7 million USAID Trade Facilitation Program (2018-2023) is helping Vietnam adopt a risk-management approach to customs and specialized inspection, bolstering implementation of the World Trade Organization’s Trade Facilitation Agreement.
Source: https://www.portcalls.com/seaports-slim-volume-growth/
