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Improving Operational Efficiency of Vietnam's Seaports: Challenges and Solutions, Essays (university) of Logistics

The challenges facing vietnam's seaports in terms of infrastructure, transport connectivity, and uneven development. The paper suggests recommendations for the vietnamese government to create a detailed investment plan, collaborate with private entities, and apply technology for better port management to improve operational efficiency and meet the high-quality demand in 2023.

Typology: Essays (university)

2022/2023

Uploaded on 01/12/2024

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School: The Business School
Program name: Logistics and Supply Chain Mngt Program code: BP255
Course/unit name: Transportation & Freight Logistics Course/unit code: OMGT2279
Name of lecturer/teacher: Scott DM
Word count: 1377 words
Assignment no: 1 Due date (DD/MM/YYYY): 3/12/2023
Class group: 03 Campus: SGS
Family name: Chan Given name: Bao Nhi Student no: s3979665
Declaration and statement of authorship
1. I/we have not impersonated, or allowed myself to be impersonated by, any person for
the purposes of this assessment.
2. This assessment is my/our original work and no part of it has been copied from any other
source except where due acknowledgement is made.
3. No part of this assessment has been written for me/us by any other person except where
such collaboration has been authorised by the lecturer/teacher concerned.
4. Where this work is being submitted for individual assessment, I declare that it is my
original work and that no part has been contributed by, produced by or in conjunction with
another student.
5. I/we give permission for my assessment response to be reproduced, communicated
compared and archived for the purposes of detecting plagiarism.
6. I/we give permission for a copy of my assessment to be retained by the university for
review and comparison, including review by external examiners.
7. I/we understand that:
Plagiarism is the presentation of the work, idea or creation of another person as
though it is your own. It is a form of cheating and is a very serious academic offence
that may lead to exclusion from the University. Plagiarised material can be drawn
from, and presented in, written, graphic and visual form, including electronic data
and oral presentations. Plagiarism occurs when the origin of the material used is not
appropriately cited.
Plagiarism includes the act of assisting or allowing another person to plagiarise or to
copy my work.
I/we agree and acknowledge that:
1. I/we have read and understood the Declaration and Statement of Authorship above.
2. If I/we do not agree to the Declaration and Statement of Authorship in this context and a
signature is not included below, the assessment outcome is not valid for assessment
purposes and will not be included in my final result for this course.
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School: The Business School Program name: Logistics and Supply Chain Mngt Program code: BP Course/unit name: Transportation & Freight Logistics Course/unit code: OMGT Name of lecturer/teacher: Scott DM Word count: 1377 words Assignment no: 1 Due date (DD/MM/YYYY): 3/12/ Class group: 03 Campus: SGS Family name: Chan Given name: Bao Nhi Student no: s Declaration and statement of authorship

  1. I/we have not impersonated, or allowed myself to be impersonated by, any person for the purposes of this assessment.
  2. This assessment is my/our original work and no part of it has been copied from any other source except where due acknowledgement is made.
  3. No part of this assessment has been written for me/us by any other person except where such collaboration has been authorised by the lecturer/teacher concerned.
  4. Where this work is being submitted for individual assessment, I declare that it is my original work and that no part has been contributed by, produced by or in conjunction with another student.
  5. I/we give permission for my assessment response to be reproduced, communicated compared and archived for the purposes of detecting plagiarism.
  6. I/we give permission for a copy of my assessment to be retained by the university for review and comparison, including review by external examiners.
  7. I/we understand that:  Plagiarism is the presentation of the work, idea or creation of another person as though it is your own. It is a form of cheating and is a very serious academic offence that may lead to exclusion from the University. Plagiarised material can be drawn from, and presented in, written, graphic and visual form, including electronic data and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited.  Plagiarism includes the act of assisting or allowing another person to plagiarise or to copy my work. I/we agree and acknowledge that:
  8. I/we have read and understood the Declaration and Statement of Authorship above.
  9. If I/we do not agree to the Declaration and Statement of Authorship in this context and a signature is not included below, the assessment outcome is not valid for assessment purposes and will not be included in my final result for this course.

I declare that in submitting all work for this assessment I have read, understood, and agree to the content and expectations of the Assessment Declaration. Student signature:

50 largest container ports worldwide (Vantage Logistics Corp. 2023). Therefore, increasing seaports efficiency is vital for Vietnam’s current trading situation and for the country to become an important regional transit location and increase Vietnam’s economic growth. III. Current challenges in Vietnam’s seaports and the impact of the challenges

  1. Current challenges The infrastructure in Vietnam has struggled to keep up with the growing demands of the regional and global maritime markets. Vietnam ranks 83rd out of 138 nations in terms of port infrastructure quality, scoring of 3.80 on a scale of 1 to 7 (Việt Nam News 2019). This is not a low rank but not enough to keep up with the speed of integration Vietnam is currently in. The unbalanced investment is the key factor that has led to many infrastructures issues in Vietnam seaports. Local competition amongst ports is caused by port division based on port investor capabilities, resulting in fragmented port growth (Viet 2022). This led to the lack of modern ports and uneven development at different ports locations. The ideal geographical position and advanced cargo-handling equipment (CHEs) in the Cai Mep-Thi Vai port group area in Southern Vietnam have enabled numerous ports such as Tan Cang—Cai Mep International Terminal to accommodate large-tonnage vessels (Tung and Nguyen 2022). Vice versa, due to unpleasant locations or old CHE, other ports such as Saigon International Terminal Vietnam and SP-PSA International Terminal are presently unsuitable for modern ships and primarily deal with bulk cargo (Tung and Nguyen 2022). In Northern Vietnam, especially recently built container ports in Hai Phong, have prioritized vertical investment, primarily updating and equipped with modern CHEs, which fits the requirements of current port operations (Tung and Nguyen 2022). However, The remaining ports have outdated handling-equipment systems, and some do not bother to purchase CHEs but instead rent them for seasonal exploitation (Tung and Nguyen 2022). The port network in HCM City handles around 60% of total throughput nationwide, while northern ports contribute around 30% (Việt Nam News 2019). It indicates that the northern ports are underutilized, but the southern ports are overcrowded with cargoes. Next is outdated cargo-handling equipment (CHEs) at the ports. Some ports are more advanced than others and have more CHE and faster CHE repair. There are still several old seaports owned by the government in Vietnam that have restricted allocations of funds, where numerous outdated CHEs are being applied to handling cargo and CHE exploitation management is still ineffective (Tung and Nguyen 2022). As a result, the probability of unusual CHE damages is rising; hence, the time required to halt the machine for emergency repair is longer. This has had a substantial impact on CHEs' productivity and performance as well as lead to the unnecessary use of port resources.

Nevertheless, there is also an issue about insufficient transport connectivity and infrastructures. The Department of Transport in Ho Chi Minh City stated that the regional connection system fails to work, therefore each area develops transportation infrastructure independently (Vietnam Plus 2023). The railway and road networks surrounding ports still remain insufficiently developed and lack connectivity to other ports. Belt roads encircling HCM City's ports, for example, appear to be overly distant or undeveloped, resulting in weak linkage between the port areas and vital commercial regions (Vietnam Plus 2023). Cai Mep - Thi Vai deep-water port cluster in Ba Ria - Vung Tau province is one of the world's fastest growing seaport clusters, however National Highway 51 remains as the sole route linking Ba Ria - Vung Tau with other provinces and cities within the Southeastern (Vietnam Plus 2023).

  1. The consequences and the impact of the consequences With the speed of integration and Vietnam's openness to the global market, the number of containers entering and leaving ports is increasing and continuously. Therefore, the current quality of the road system around port areas creates bottlenecks in traffic which lead to congestion at ports. This increases delay in delivery time, operating costs of logistics businesses and reduces the industry competitiveness. Lack of connected roads to key port areas will make businesses not want to locate or do any business activities there which causes those areas to lack a large source of investment, affecting the overall economic growth of those localities and the whole region, creating unbalanced development. The lack of modern ports and the use of outdated CHE lead to overload and lower productivity at seaports. This causes problems related to the arrangement of containers at the port and easier to lose track of containers which can lead to delay and supply chain disruption. IV. Recommendation: Solutions to reduce or remove the problems The issues from seaports’ infrastructures mostly from the unbalanced investment. To address the issue, the Vietnamese government should carry out needs evaluations in order to determine shortages in infrastructure and allocate investments according to the particular requirements of each port. Considerations include volumes of trade, vessel sizes, cargo categories, and predicted growth. Then, for each port or group of ports, create thorough strategic plans outlining investment objectives and timetables. By utilizing resources from the private sector and matching investment decisions with commercial feasibility, public-private partnerships (PPPs) can assist in balancing investment (Akitoby et al. 2007). The government should consider collaborating with businesses from the private sector through PPPs for the purpose of utilizing private funding and knowledge in port infrastructure development. Governments can provide private firms incentives or long-term agreements for funding, construct, and manage port facilities.

https://english.vov.vn/en/economy/vietnamese-port-among-most-effective-container- seaports-worldwide-post1022697.vov VLR (1 January 2020) 'Vietnam Sea Ports: Competitive Advantages to Become A Sea-Based Economy Country' , VLR , accessed 3 December 2023. https://vlr.vn/vietnam-sea-ports- competitive-advantages-to-become-a-sea-based-economy-country-2252.html Vantage Logistics Corp. (17 March 2023) 'Summary of Viet Nam Seaport System Capacity 2022' , Vantage Logistics Corp. , accessed 3 December 2023. https://vantage- logistics.com.vn/summary-of-viet-nam-seaport-system-capacity-2022-bv218.htm