Located in the centre of Viet Nam and being a traffic hub in terms of roadways, railways, waterways and airways, Da Nang converges almost all crucial elements for the strong growth of its logistics industry.

Promoting potentials and resources from mechanisms and policies

According to the Da Nang Department of Transport, over the past time, the city's transportation industry has had many strategies and developed the transport synchronous infrastructure network in a bid to meet the travel needs of locals and visitors.

Also, the recent development of a synchronous transport infrastructure network has significantly contributed to restructuring the transport sector, ensuring the harmonious connection of modes of transport, promoting the strengths of each mode, reducing transportation costs, and improving efficiency and quality of transport services, hereby enhancing the competitiveness of the local economy.

Deputy Director in charge of the municipal Department of Transport Bui Hong Trung said that although the city's transportation industry has achieved numerous remarkable achievements over recent years, logistics activities in Da Nang have had many limitations. Additionally, the city’s service supply and logistics connection capacities, and its competitiveness, in the region and the world have been still modest.

“The cost of road transport is still high, and the business activities of transport enterprises have not yet to be optimised. In addition, most of the warehousing systems of joint stock, private and joint-venture enterprises for logistics service providers are small scale. This means that the warehouse system and logistics services in Da Nang only partially meet the production and storage needs of the locality and neighbours, but have not yet met the current increasing demand for international freight transportation through the city” added Deputy Director Trung.

He noted Da Nang’s transport infrastructure has been still limited and easily divided when encountering storms and floods. Not to mention, the city is facing a severe shortage of qualified staff working in logistics industry.

In order to deal with the aforementioned problems, the city has recently issued a plan on boosting the development of logistics services and seaports in a bid to develop Da Nang into a major marine economic hub in Viet Nam.

Five logistics centres to be developed in the city

According to the Prime Minister-approved adjustments to the master plan for Da Nang’s major developments by 2030 with a vision to 2045, the city will develop five key logistics centres at traffic hubs, industrial parks and industrial clusters.

Specifically, the Lien Chieu Port Logistics Centre will be developed as a seaport logistics centre in the city, with a scale of 35ha by 2030, and 69ha by 2045.

The second one will be the Hoa Nhon Logistics Centre which will be positioned near the intersection of the Da Nang - Quang Ngai Highway and the south of Hoang Van Thai route. It is expected to be 27ha by 2030 and 54ha by 2045.

This road logistics centre will be in charge of providing technical services for road transport vehicles, and logistics services for goods transporting vehicles transiting through the city.

Also, a railway logistics centre will be built in Hoa Vang District’s Hoa Lien Commune with a scale of 5 ha by 2030, and 10 ha by 2045.

Meanwhile, an aviation logistics centre will be constructed at Da Nang International Airport. It is expected to be 4 ha by 2030, and 8 ha by 2045.

Moreover, there will be a specialised logistics centre at the Da Nang Hi-Tech Park with a scale of 3 ha by 2030, and 20 ha by 2045. It will play the role of supporting the aviation and road logistics centres.

Last but not least, some small-scale logistics centres and other warehouses with the scale of 26ha by 2030, and 68ha by 2045 will be built in the city, aimed at supporting the above-mentioned centralised logistics centres, as well as collecting and distributing goods to serve the city and neighboring provinces. They will be arranged according to the actual needs and the city's land fund at locations convenient for traffic and near the hubs of production and consumption of goods.

In an effort to promote the development of the logistics industry, Da Nang plans to pour money into developing roadway and railway infrastructure, thereby ensuring the harmonious connection between seaports and other modes of transport.

Deputy Director in charge of the Department of Transport Bui Hong Trung emphasised that the soon-to-be-developed logistics centers along with the improvement of the city's transport system in the future will help Da Nang promote its logistics industry, thereby creating a spillover for the whole region and forming a logistics service supply chain in Central Viet Nam. This is a golden opportunity for investors from both home and abroad to invest into the city's logistics industry in the coming time.

Reporting by TRIEU TUNG – Translating by M.DUNG