Saigon Newport Corporation signs a memorandum of understanding for cooperation with Phnom Penh Port, Cambodia, to strengthen logistics links Vietnam - Cambodia
On October 28, 2023, Saigon Newport Corporation (SNP) organized a specialized seminar titled “Strengthening logistics links Vietnam - Cambodia: Connection & Growth” in Phnom Penh, Cambodia. The event was attended by over 200 guests, including representatives from Cambodian and Vietnamese government agencies, associations, logistics experts as well as delegates from Thailand and Myanmar, drawing the direct and online participation of more than 500 import-export and logistics enterprises from Cambodia and Vietnam.
Mr. Bui Van Quy - Deputy General Director of TCT TCSG gave the opening speech of the conferenceOn October 28, 2023, Saigon Newport Corporation (SNP) organized a specialized seminar titled “Strengthening logistics links Vietnam - Cambodia: Connection & Growth” in Phnom Penh, Cambodia. The event was attended by over 200 guests, including representatives from Cambodian and Vietnamese government agencies, associations, logistics experts as well as delegates from Thailand and Myanmar, drawing the direct and online participation of more than 500 import-export and logistics enterprises from Cambodia and Vietnam.
Vietnamese Ambassador to the Kingdom of Cambodia Nguyen Huy Tang spoke at the event
The Potential for Vietnam – Cambodia Logistics DevelopmentIn recent years, logistics between Vietnam and Cambodia have experienced comprehensive and continuous growth, with increasingly deep and extensive connections. With the shared border over 1,130km, bilateral trade between Vietnam and Cambodia has seen consistent growth. The trade volume between Vietnam and Cambodia for the 2015-2022 period increased on average by 18.5% per year. Notably, trade in 2021 surged by a strong 79% compared to the same period in 2020, despite the significant impact of the Covid-19 pandemic. Vietnam serves as a major and essential trading partner, enabling Cambodian goods to access key seaport areas, facilitating exports to countries worldwide. Meanwhile, Cambodia holds a strategic location in the Mekong sub-region and plays a vital role in the East-West economic corridor, connecting Vietnam with neighboring countries. The untapped potential and growth prospects for Vietnam-Cambodia logistics remain significant, with the ability to enhance connectivity for a more efficient and seamless logistics system, benefiting businesses and economies on both sides of the border.
Ms. Do Thu Huong - Deputy Director of MKT presented the presentation TCSG promotes the advantages of connecting and developing logistics on the Vietnam - Cambodia route
Saigon Newport Corporation with Cost-Optimizing Logistics Solutions for Cambodia's Import and ExportAccording to data from the Vietnam Customs Department in 2022, the volume of transshipment by waterway - a 'green transport solution' connecting Vietnam and Cambodia via the Mekong River - exceeded 394,000 TEUs. Of this, SNP accounted for a 56% market share in waterway transport for imports and 49% for exports. For SNP, their logistics operations on the Vietnam-Cambodia route are considered a vital component of their strategy for expanding and developing the Cambodian market, as well as neighboring regions. SNP owns a cluster of three terminals (Tan Cang - Cai Mep Terminal, Tan Cang International Terminal - Cai Mep, and Tan Cang - Thi Vai Port) in Ba Ria-Vung Tau Province, and Tan Cang Cat Lai Port in Ho Chi Minh City, playing a crucial role as transshipment and transit hubs that serve as vital gateways for Cambodian goods to connect with the world. In addition, with the roll-on/roll-off transportation service from Ho Chi Minh City/Cai Mep to Phnom Penh, provided by Tan Cang Cypress JSC and Tan Cang Waterway Transport JSC, Vietnamese and Cambodian enterprises can reduce transport time and optimize logistics costs. Furthermore, businesses located near the border areas of Moc Bai and Hoa Lu checkpoints can utilize road transportation services offered by ICD Tan Cang Tay Ninh. SNP will soon establish and operate ICD Tan Cang Tay Ninh, situated 70 km from HCMC and 2.8 km from the Moc Bai border gate. This is an ideal location for cross-border logistics services and cargo handling, as well as an empty container depot coordination service that maximizes cost savings for enterprises in the economic zones near both the Vietnam-Cambodia border.
Deputy General Director Bui Van Quy - Representative of the Organizing Committee expressed gratitude to the speakers who presented in the ConferenceMr. Nguyen Huy Tang, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the Kingdom of Cambodia, has expressed absolute confidence in the effective solutions provided by SNP, which are being implemented in the Cambodian market. These solutions contribute to promoting local socioeconomic development and strengthening import-export links between Vietnam, Cambodia, and neighboring countries in the region.
Saigon Newport Corporation signed a cooperation agreement with Phnom Penh Port
SNP signs memorandum of cooperation with Phnom Penh Autonomous Port amidst Cambodia's attraction of FDI projects, creating opportunities for business expansion and driving increased demand for logistics servicesCambodia's strategic location in the Indochina and Southeast Asia region is increasingly drawing FDI investors. The total FDI capital into Cambodia was $3.48 billion in 2021 and $3.58 billion in 2022. Additionally, Vietnam and Cambodia still have significant potential for further cooperation in various sectors, including consumer goods manufacturing, energy, electricity, mineral extraction, agricultural processing, and fisheries. The suggestions and proposed solutions of logistics experts in the seminar will contribute to strengthening the connections and fostering robust logistics services for the Vietnam-Cambodia route, ensuring smooth and efficient supply chain operations. However, alongside the opportunities and potential, there are still many challenges that require joint efforts, not only from government agencies and local authorities but also from the business communities in Vietnam and Cambodia, particularly regarding customs procedures for transshipment cargo and related fees.
Mr. Bui Van Quy - Deputy General Director moderated the discussion session at the eventMr. Bui Van Quy, Executive Vice President of SNP, affirmed their commitment to working with shipping partners and domestic and international logistics associations to provide the best services
At the conclusion of the seminar, SNP signed a Memorandum of Understanding (MOU) with Phnom Penh Autonomous Port (PPAP), marking a strategic collaboration between the two leading port operators of the two nations. The partnership between the two ports will enhance efficiency and reduce logistics costs, contributing to the sustainable development of businesses and further promoting economic and trade growth between Vietnam and Cambodia. The seminar's conclusion opens up additional potential for cooperation for import-export and logistics companies in both Vietnam and Cambodia.
Delegates exchanged information at the discussion session
Some pictures at the event: