Overview : Viet Nam Market Part 2 SITC Viet Nam & SITC Branches in Viet Nam...9. SITC Service in North Viet Nam...18
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2 Contents Part 1 Overview : Viet Nam Market... 3 Part 2 SITC Viet Nam & SITC Branches in Viet Nam...9 Part 3 SITC Service in North Viet Nam Part 4 North Viet Nam Port System & Logistics System Part 5 Central Viet Nam Da Nang Introduction Part 6 Q & A
3 Part 1 Overview : Viet Nam Market
4 Viet Nam s Recent Economic Growth has been Stable and Sustained
5 Stable Macroeconomic Environment
6 Vietnam s Trade Concentration Records for Japan s ODA to Vietnam Source: JICA Japan is the fourth-largest trading partner for Vietnam next to China, the US, Korea
7 Foreign-Invested Sector Remains an Important Engine of Export Growth Japan is the largest country as an ODA donor and a FDI investor to Vietnam.
8 Advantages to develop business in Viet Nam 1. Political stability 2. Competitive wages, young and abundant, relatively skilled (for labor-intensive manufacturing activity) and disciplined workforce 3. Good and close relationship between Vietnam and Japan. Cultural similarity 4. Geographical advantage 5. Not only production base but also the possibility as a big consumer market 6. Actively involved in developing investment environment
9 Part 2 SITC Viet Nam & SITC Branches in Viet Nam
10 SITC Viet Nam History Launched liner service to Da Nang Launched liner service between Hong Kong and Haiphong Established SITC Vietnam Co., Ltd Established SITC Vietnam Hanoi Representative office Established SITC Vietnam Da Nang Representative office Established SITC Vietnam Ho Chi Minh Branch Launched liner services to Ho Chi Minh city.
11 SITC VIETNAM CO., LTD. As of Dec 2014, SITC run 20 services every week in Vietnam. Till now, our container shipping service network covers China mainland, Japan, Korea, Thailand, Indonesia, Cambodia, Philippines, Malaysia, Singapore, Hong Kong and Taiwan.
12 SITC DINHVU LOGISTICS CO., LTD. First container lift off on Mar 3, 2011 In order to providing comprehensive logistics service, SITC Dinh Vu Logistics Company established under the joint capital between SITC International Holding Co. and Dinh Vu port in 2011, which business scope covers warehousing and container depot. SITC-Dinh Vu locates in the center of Haiphong Dinh Vu industrial zone, surrounded by Dinh Vu Port, Tan Vu Port, PTSC Port, 189 New Port, Nam Hai Dinh Vu Port, Hai An port, and Bridgestone Tire Manufacturing Vietnam LLC. SITC-DINH VU depot
13 SITC DINHVU LOGISTICS CO., LTD. In Aug, 2011, SITC Dinh Vu signed letter of intent to purchase 50, square meters of land. In Sep, 2011, shareholders of SITC Dinh Vu added investment with USD6,000,000 for phase II depot. On 16th Jan,2013, phase II depot with 50,000 square meters was put into trial operation, and started formal operation in Mar, 2013.Phase II depot includes 44,800 square meters container depot, 4000 square meters warehouse and 1200 square meters office building. Warehouse and office have been put into operation in Oct, Main gate of 2 nd phase Office building of 2 nd phase Warehouse of 2 nd phase
14 SITC DINHVU LOGISTICS CO., LTD. In Jul, 2013, SITC Dinh Vu invested USD5,000,000 to purchase 63,000 square meters of land for Phase III depot. This project will concentrate on container depot and bonded warehouse service, which is estimated to be put into operation in the end of Sign contract for Phase III depot Soft opening of Phase III depot
15 SITC LOGISTICS VIETNAM CO., LTD. To provide comprehensive forwarding services, SITC Logistics Vietnam set up on 28th Dec, It is a joint venture between SITC Vietnam Co., Ltd and SITC Logistics Inc PTE. Co. SITC Logistics Vietnam has 50 employees. Network covers Haiphong, Ho Chi Minh, Mong Cai and Tay Ninh. HCM branch was opened on 12th Jul, And Hanoi, Mong Cai, Tay Ninh office were in Mar, May and Jul 2013.
16 SITC Newport Logistics Co., Ltd. For complete service to clients, SITC New Port Logistics Co., Ltd. set up in Aug, SITC New Port Logistics is the joint venture between SITC International and Saigon New Port Group. Business scope includes container depot, freight forwarding, warehousing and container repairing. SITC New Port Logistics is located next to Cat Lai port. In Aug, 2013, SITC New Port Logistics began to operate with 17,000 square meters depot. SITC New Port Logistics is planning to purchase the second land to enlarge its depot area.
17 Part 3 SITC Service in North Viet Nam
18 High frequency: 8 sailing per week Haiphong Japan: 4 direct sailing per week High Frequency Cost Effectiveness Strength All Direct Service Fastest Haiphong Osaka, Kobe, Nagoya, Yokkaichi Haiphong Tokyo, Kawasaki, Yokohama, Shimizu Service : CJV2 T/T: 8 10 days Service : CJV3 T/T; 9 10 days Hakata, Osaka, Kobe, Haiphong Haiphong Tokyo, Yokohama, Nagoya, Moji Service : CJV4 T/T: 7 9 days Service : JCV T/T: days
19 High frequency: 8 sailing per week Haiphong Korea: 4 direct sailing per week High Frequency Cost Effectiveness Strength All Direct Service Fastest Haiphong Busan, Kwangyang Haiphong Busan Service : CJV2 Service : CJV3 Inchon, Haiphong Haiphong Inchon Service : CKV Service : CKV2
20 High frequency: 8 sailing per week High Frequency All Direct Service Haiphong China: 7 direct sailing per week Haiphong Hong Kong: 2 direct sailing per week Strength Cost Effectiveness Fastest Xingang Dalian Qingdao Shanghai Ningbo Fangcheng Xiamen Shekou Hongkong Haiphong
21 High frequency: 8 sailing per week High Frequency All Direct Service Haiphong SEA: 1 fastest direct service to Laem Chabang and Jakarta Strength Cost Effectiveness Fastest Haiphong Bangkok LaemChabang Jakarta
22 Unique Services in North Vietnam Benefit from terminal Customers Vietnam Private area SITC is the biggest customer of Dinh Vu Port, besides, we are joint venture partner. Because of the above special relationships, Dinh Vu supports SITC to provide private area for customers import cargoes. Benefit from self-supporting depot SITC-Dinh Vu depot is joint venture between SITC International Holdings and Dinh Vu port. We manage the depot by ourselves and can provide a variety of services upon customers request. The below two kinds of special services are just some examples: 1) Providing private area for customers export cargoes Customers Vietnam Private area 2) Providing empty container to customers by importance of customer and different commodities. We divide our empty containers into 3 classes: a. Super-A class: mainly for VIP customers and special commodities like electronic goods, garment, furniture etc b. Normal A class: mainly for normal commodities c. Normal B class: mainly for commodities like ore, ferro silicon etc
23 Future development planning Launching more direct services between Japan & Haiphong to strengthen own advantages CJV6: HAIPHONG-TAICANG-SHANGHAI-TOKYO-YOKOHAMA-KAWASAKI-HITACHINAKA- TOKYO YOKOHAMA KAWASAKI HITACHINAKA SHANGHAI-SHEKOU-HONGKONG-HAPHONG Maiden voyage: ETD TYO on Mar 14 (Southbound) ETD HPH on Mar 26 (Northbound) Developing Japan out ports Expanding services around ASEAN countries Developing ICD operation surround Hanoi city Developing Da Nang market
24 Part 4 North Viet Nam Port System & Logistics System
25 Vietnam Container Hub & Spoke System: * Lying on most animated navigation lanes * On a side of golden triangle China - Indonesia India Source: ADB Greater Mekong Sub region (with population of 400mio people)
26 Vietnam Port System Overview History of the Haiphong Port: * 1874: Establishment of Haiphong port November 24 th, 1929 is selected as Haiphong Port Historical Anniversary Date.
27 North Vietnam Container Terminal Matrix In 2014 No rminal/ tribute Unit CICT Quang Ninh Port Hoang Dieu Terminal Nam Hai Terminal Doan Xa Terminal Transvina Terminal Green Port Terminal Chua Ve Terminal Tan Cang 128 Terminal Tan Cang 189 Terminal Hai An Terminal PTSC Dinh Vu Terminal Tan Vu Terminal Nam Dinh Term CY ha Berth meter / Type 4QC 2QC 26 slew cranes 3 SWL 4 MBH 2 MBH 4 MBH 4 QC, 5 MBH 6 MBH 1QC 2 MBH 2 slew cranes 3 MHB 2 QC, 4 slew cranes 4 QC, 7 MBH 2 Q 2SW Annual apacity teu 520, , , , , , , , , , , , ,0 hannel draft t oughput meter teu 378, , ,900 74, , ,277 81,050 94, , , , , ,5 RW PIL Vinales MOL Evergreen RCL Vinafco PEL VSICO SITC Maersk AS Customers TRIM ZIM Gemadept Vosco COSCO Wanhai TOKO LINE Gemadept CNS SNL H A Namsung TRAWIND Vinalines BNL Gemadept APL Nasico Bien Dong CSCL VOSCO Vinalines OOCL Hung Dao TS Line Namsung Viet Sun Tan Cang Shipping SITC YML Evergreen MOL CMA CGM CU RCL MEL APL KMTC Gemadept YM K Line Bien Dong Bien Dong NYK CMA C COSCO SINOKOR HMM MS SNL SAM AC H A RCL TSLi
28 Location of container terminal in Haiphong area Tan Cang 189 Customs Area 4
29 North Vietnam Logistics System IMPORT & EXPORT DOMESTICS: NORTH CENTER SOUTH 1. BAC NINH ~10% 2. BAC GIANG ~60% 3. HA NOI 4. HAI DUONG 5. HAI PHONG CROSS BORDER 6. ETC. ~30% TRADE: 1. VIETNAM CHINA 2. VIETNAM LAOS CARGO HANDLING: 1. HAI PHONG PORT 2. CAI LAN PORT
30 LAO CAI LANG SON AIRPORT MONG CAI BORDERS BAC NINH NOI BAI HAI PHONG
31 Map Matrix Of Importers/Exporters t BAC NINH INDUSTRIAL ZONES 18 HIGHWAY 5A HIGHWAY 5B
32 Part 5 Central Viet Nam Da Nang Introduction ti
33 Da Nang is situated in the centre of Viet Nam, 764km from Ha Noi and 964km from Ho Chi Minh City. It lies on the north-south transport axis of land, rail, sea and air routes. Da Nang borders with Thua Thien-Hue Province in the north, Quang Nam Province in the south and the west, and the East Sea in the east. Da Nang is a pivotal part of the East- West Economic Corridor, the gateway to the Pacific Ocean of Laos, Thailand, Myanmar and central Viet Nam. Located on international sea and air routes, Da Nang has an especially favorable location for rapid and sustainable development.
34 EAST-WEST ECONOMIC CORRIDOR (EWEC) The East West Economic corridor is an economic development program initiated in order to promote development and integration of four Southeast Asian countries, namely: Myanmar, Thailand, Laos and Vietnam. The concept was agreed upon in 1998 at the Ministerial Conference of the Greater Mekong Sub region, organized in Manila, the Philippines. This corridor became operational on December 12, The economic corridor is created based on a road of 1,450 km with the west end at port city of Mawlamyine (Myanmar), crossing Kayin Division, Thai provinces of Tak, Sukhothai, Phitsanulok, Phetchabun, Khon Kaen, Kalasin and Mukdahan and Laotian provinces of Savannakhet, Vietnamese provinces of Quảng Trị, Thừa Thiên Huế Province and Đà Nẵng city as the east end.
35 EAST-WEST ECONOMIC CORRIDOR (EWEC) INDUSTRIAL ZONE ENTERPRISES DOMESTIC FDI UTILIZED HOA CAM IZ % HOA KHANH % LIEN CHIEU % THO QUANG SEAFOOD SERVICE IZ % DANANG IZ % HOA KHANH (EXPANDED) % TOTAL
36 YEAR PROVINCE EXPORT IMPORT EXPORT IMPORT QUANG BINH 118,840, ,633,546 88,157, ,855,039 QUANG TRI 292,422, ,117, ,602, ,529,742 HUE 363,601, ,621, ,111, ,378,429 DA NANG 1,113,363,846 1,045,862,697 1,185,113,182 1,041,275,221 QUANG NAM 554,570, ,870, ,074, ,484,756 QUANG NGAI 553,763, ,339, ,925, ,313, TOTAL 2,996,562,446 2,639,444,475 2,961,984,878 2,914,836,951
37 SITC Service in Da Nang: CJV5 Calling port Da Nang Hong Kong Shanghai Ningbo North Bound South Bound T/T 0 2/3 5/6 7/7 Date Wed/Wed Fri/Sat Mon/Tue Wed/Wed Calling port Shanghai Ningbo Hong Kong Da Nang T/T 1/1 1/1 4/4 8/8 Date Mon/Tue Wed/Wed Sat/Sat Wed/Wed Service : CJV5 Shanghai Ningbo Hong Kong SITC Service in Da Nang: CJV5 Danang
38 Part 6 Q&A
39
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