IFC, YCH Group & T&T Group partner to develop SuperPort in Vietnam

Total investment capital for the project is expected to be around $300 million.

The project will be one of the country's first ICDs with multimodal facilities, including an international distribution centre and an inland port for rail connectivity and air transportation. The logistics hub in North Vietnam aims to improve the processing of domestic and international trade, reducing logistics costs and improving the country's trade competitiveness, the three entities said in a joint media release.

Over the next 12 months, IFC will help YCH Group and T&T Group develop a bankable and sustainable project by providing technical expertise, helping the developers mitigate risk and strengthen environmental and social standards. IFC will also support the sponsors in making the logistics hub's infrastructure green and sustainable, supporting Vietnam in its efforts to reach its net-zero carbon emissions target by 2050. IFC also has the right to act as lead arranger of long-term financing for the Vietnam SuperPort.

"The signing ceremony with IFC is yet another significant milestone for the entire connectivity initiatives of which YCH Group intends to invest more than $2 billion in the next five years to enhance ASEAN connectivity to improve intra-ASEAN trade, as well as trade with the rest of the world," said Dr. Robert Yap, executive chairman of YCH Group.

Do Quang Hien, chairman of the board of directors and general director of T&T Group, said: "We are confident that the Vietnam SuperPort, a multimodal logistics hub built with cutting-edge technologies, will reduce the cost of logistics and improve time to market, thereby improving trade connectivity to the world, boosting our economy, as well as contributing to the symbiotic and sustainable growth of Vietnam."

The Vietnam SuperPort is strategically located near local ports, Noi Bai International Airport, and border posts with China and Lao PDR. It is also situated within reach of 20 industrial parks, enabling it to become a supply-chain hub for local manufacturing operations. The facility is expected to capture roughly 10 per cent of the total container traffic generated in the country's northern provinces once it comes into operation. It will help improve the efficiency of Vietnam's logistics sector and reduce the cost of logistics services, which remain high in Vietnam, accounting for 21 per cent of its gross domestic product in 2019, compared to less than 10 per cent in OECD countries.

"Our early engagement in the project will help make sure it will be developed with the highest environmental, social, governance and climate-friendly international standards to help attract international investors. The project will not only help strengthen Vietnam's logistics and freight sector to support the growth of the country's manufacturing industry and bolster economic development. It could also serve as a model for YCH Group to replicate in other regional markets, which will eventually help improve logistics performance in the ASEAN region,” said Alfonso Garcia Mora, IFC's regional vice president for Asia and Pacific.

Fibre2Fashion News Desk (KD)