Da Nang emerges as new international logistics hub in the Indo-Pacific
DNO - Da Nang boasts a particularly strategic position as it connects key economic and trade zones along North-South and East-West axes, as well as links the mainland to the sea.
All these advantages provide favorable conditions for the city to develop into a regional hub for cargo transshipment, logistics and international trade in Central Vietnam and the Indo-Pacific region as a whole.
Outstanding advantages
In recent years, the Indian Ocean and Pacific Ocean have increasingly affirmed their role as major centers of global economic growth.
The emergence of new economic corridors aims not only to improve transport infrastructure connectivity but also at expand connections across supply chains and cargo flows.
In addition, with 17 free trade agreements currently in force and its strategic geographic location at the heart of Southeast Asia, Vietnam has a significant opportunity to strengthen its position in regional and global logistics networks.
Notably, Da Nang has all the necessary conditions to emerge as a new growth pole, driven by its outstanding advantages.
In particular, with the Lien Chieu Port, the Free Trade Zone, the International Financial Center in the city, a regional distribution center and multimodal transport hubs, Da Nang is well positioned to become a hub for cargo transshipment, logistics and international trade in Central Vietnam and the Indo-Pacific region.
The city is currently studying plans to expand the development space of its Free Trade Zone southward, connecting it with the Chu Lai Open Economic Zone and regional infrastructure hubs, production areas and logistics facilities.
This expansion aims to broaden the scope for production, trade, and logistics as well as strengthen the city’s connectivity with domestic and international supply chains.
At the same time, Da Nang is promoting digital transformation, data and smart technologies as a new layer of infrastructure for its logistics ecosystem.
The intention of the initiative is to enhance data sharing, cargo tracking, operational efficiency and connectivity among stakeholders across the supply chain.
Solutions to turn vision into reality
Da Nang holds a particularly strategic location along the East-West Economic Corridor and is capable of connecting with maritime routes extending into the Indo-Pacific region.
Based on the assessment, Mr. Dao Trong Khoa, Chairman of the Vietnam Logistics Business Association (VLA), proposed the “Da Nang Logistics Corridor” initiative focusing on five priority action groups: mapping cargo flows; developing cost and time indices; piloting a digital corridor; piloting a green corridor; and establishing business and investment alliances.
The initiative also calls for three strategic shifts: from transport corridors to economic corridors; from physical connectivity to a combination of physical, digital and green connectivity; and from simply moving goods through Da Nang to creating value within the city.
Mr. Le Quang Trung, Deputy General Director of Vietnam Maritime Corporation (VIMC), suggested Da Nang develop new transport routes through the Binh Luc Canal in Guangxi, China, in a bid to realize the goal of making Da Nang an Indo-Pacific logistics gateway.
He also proposed completing the legal framework for international maritime routes, promoting cooperation agreements to facilitate direct cargo transportation and customs clearance, and accelerating investment in Lien Chieu Port.
Also, the city should lay an emphasis on introducing mechanisms to encourage logistics enterprises to invest in logistics centers and warehouses within the Free Trade Zone, he added.