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| Do Thai Duong, Project Director of LEC Group at the Chan May - Lang Co Economic Zone. |
According to Do Thai Duong, Hue City lies on the North-South transport corridor and serves as a connection point on the East-West Economic Corridor. In particular, the deep-water Chan May Port in the Chan May - Lang Co Economic Zone offers significant advantages for developing services related to maritime transport, warehousing, import-export activities, and goods distribution.
Given these existing advantages, how can Hue strengthen its role and develop into a regional logistics hub?
Hue’s greatest advantage is its location. In logistics, location and connectivity are particularly important. Hue has both: it lies on the North-South corridor, with road, rail and maritime transport links, while also being part of the East-West Economic Corridor, connecting with southern Laos through border gates.
Chan May, in particular, has an advantage that not every locality possesses: a deep-water port capable of accommodating large vessels. When a seaport is located within an economic zone that also includes industrial parks, urban areas, services and warehousing facilities, the potential to develop a logistics hub becomes very clear.
Another major advantage is the potential to expand Chan May’s cargo hinterland. If the port relies solely on cargo from Hue, its scale will be limited. But with strong connections to Quang Tri, Da Nang, the Central Highlands and especially southern Laos, Chan May can serve a much larger market.
The key is to turn geographical advantages into advantages in transport time and cost. A convenient transport route can cut hours off journey times and reduce fuel, vehicle and labor costs. That would give businesses more reason to choose Chan May.
Despite these advantages, Hue’s logistics sector has yet to develop to its full potential. What are the main bottlenecks?
In my view, the biggest bottleneck is that connectivity is not yet fully integrated. An efficient logistics hub cannot rely solely on warehouses or a seaport. It needs a well-connected transport network that can move goods in and out as quickly as possible and at the lowest possible cost.
Chan May has a deep-water port, but its advantages cannot be fully realized if connections between the port and production areas, industrial parks, expressways and major markets remain inadequate.
Another issue is cargo volume. Logistics development requires a steady flow of goods. To generate sufficient cargo volume, Hue needs to expand its connections and attract more manufacturing, industrial, commercial and import-export activities.
The logistics service ecosystem also needs to be further developed. It should include not only warehouses and storage yards, but also transport, customs clearance, packaging, distribution, cargo management and specialized logistics services. The more integrated these services are, the more time and money businesses can save.
Finally, there are mechanisms and policies. Logistics requires substantial investment and has a long payback period. Policies on land, investment, taxation and administrative procedures, as well as access to essential infrastructure, have a direct impact on investors’ decisions. Unless these issues are addressed in a coordinated manner, it will be difficult to develop a competitive regional logistics hub.
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| The terminals at Chan May Port provide favorable conditions for the import and export of goods in the region. |
What solutions should Hue prioritize to make a breakthrough?
First, I believe logistics must be recognized as a highly interconnected sector that requires a long-term approach. In the short term, Hue should focus on completing transport routes capable of creating a large cargo catchment area for Chan May.
One option that should be studied is a connection between the Chan May - Lang Co Economic Zone and the La Son - Hoa Lien Expressway. Better connectivity would significantly shorten the time needed to transport goods from the Central Highlands, southern Laos and western areas to Chan May. Chan May could then become not only Hue’s port, but also a maritime gateway for the wider region.
Alongside transport infrastructure, Hue needs to develop an integrated logistics service system. Investors should be given favorable conditions to develop warehouses, storage yards, distribution centers, multimodal transport and specialized services.
Hue should also consider sufficiently attractive incentives to draw major logistics companies. These should not be limited to tax incentives, but could also cover land, investment procedures, connecting infrastructure and business support mechanisms.
Moreover, there needs to be close coordination among the government, port operators, logistics companies, industrial parks and manufacturers. Logistics can develop sustainably only when the entire system works together; it cannot depend on a single project.
You have previously proposed connecting Chan May with southern Laos and northeastern Thailand. What significance would such a connection have?
I believe this is an issue Hue should consider as part of its long-term logistics development strategy. Southern Laos has cargo sources such as minerals, agricultural and forestry products, as well as many other goods with import and export demand. If an efficient transport route can be established through the A Dot Border Gate to Chan May, the port’s cargo catchment area will expand.
The important point is to view this not simply as a transport route, but as a cross-border logistics corridor. Goods from production areas in Laos could be transported through the border gate to logistics centers, where the necessary services would be provided before the goods are exported through Chan May Port. Conversely, goods imported through the port could be distributed to markets further west.
If Chan May can connect with southern Laos and, further afield, northeastern Thailand, the port will have an opportunity to expand its market. Achieving this, however, will require coordination at both national and regional levels because it involves border gates, transport infrastructure, customs procedures and cross-border transport regulations.
In my view, this is a long-term strategic direction. Hue should proactively conduct research, put forward proposals and work with other localities, central government agencies, and partners in Laos and Thailand to gradually establish this corridor. Logistics would then no longer be a matter for Hue alone, but could become a trade link between the East Sea and areas to the west.
How do you expect Hue’s logistics sector and the Chan May area to develop in the coming years so that they can become a sustainable driver of regional growth?
I expect Chan May to develop a modern logistics ecosystem in which the seaport is an important link, but not the only one. The area around the port needs logistics centers, warehouses and storage facilities, multimodal transport, customs services, goods distribution and specialized logistics services.
In the longer term, Chan May should become a connection point linking cargo from Central Vietnam, the Central Highlands, southern Laos and northeastern Thailand with international markets. Hue would then not only provide logistics services for local businesses but also participate more deeply in regional supply chains.
However, logistics development must go hand in hand with sustainability. We should not focus solely on building more warehouses or increasing cargo volumes. The goal should also be to optimize transport, reduce empty runs and costs, and gradually adopt technology, digital transformation and green logistics.
To achieve this goal, the most important factors are a unified development strategy and close cooperation between the government and the business community. If this can be achieved, it will create opportunities not only for the logistics sector but also new room for Hue’s industrial development, trade, import-export activities and economic growth in the years ahead.
Thank you for the interview.