March 11, 2025 | 17:00 GMT+7

Long An mulls providing up to $11,000 in subsidies for container ships visiting its ports

Việt An -

Other localities such as Ha Tinh, Thanh Hoa and Thua Thien Hue have seen positive results at their port facilities after implementing similar incentive policies.

The Long An International Port is a major trade hub of the province.
The Long An International Port is a major trade hub of the province.

The People's Council of the Mekong Delta province of Long An on March 10 reached agreement to formulate an incentive policy to attract container shipments to the province's ports.

Earlier, the Long An Provincial People's Committee has also submitted a proposal to the council, seeking feedback on this policy.

According to the draft, licensed shipping lines operating container transport and conducting loading or unloading at ports in Long An—at a minimum frequency of two visits per month—will receive a subsidy of VND 200 - 300 million ($7,800 - $11,778) per trip.

Additionally, enterprises, organizations, and individuals engaged in logistics services or owning goods transported via containers through Long An’s ports (excluding temporary import-export and transit goods) will be eligible for support of VND1 million ($39) per 20-foot container and VND1.5 million ($59) per 40-foot container or larger. The funding for this policy will be allocated from the province's balanced budget.

Currently, Long An hosts 18 ports of varying types and scales, primarily invested in and operated by foreign enterprises along the Vam Co and Soai Rap rivers. Among these, the Long An International Port holds strategic importance for both the Mekong Delta and the Southeastern regions of the country, regarded as a pivotal hub for industrial, service, and urban development.

However, these ports face difficulties due to a shortage of container shipments. A scientific workshop organized by the Long An People's Committee identified specific challenges such as low container volumes, high ship entry-exit costs, and competition with other ports, making Long An less attractive to shipping lines.

As a result, initial support from local authorities is deemed necessary to incentivize container transport through these ports. This move demonstrates the province's commitment to supporting investors, promoting sustainable development, and enhancing its investment appeal.

In Vietnam, while major seaport cities like Hai Phong and Ho Chi Minh dominate the market but have yet to introduce support policies, some central provinces such as Thanh Hoa, Ha Tinh, and Thua Thien-Hue have proactively implemented policies to attract container shipping for both shipping companies and cargo owners.

Thanh Hoa was the first to introduce such policies in 2019, offering subsidies of VND200 million per vessel docking at Nghi Son Port, with a minimum frequency of two trips per month. Between 2019 and 2023, the province disbursed VND17.8 billion ($700,000) for 89 out of 91 eligible ship calls, resulting in a budget revenue of VND1.18 trillion ($46 million) - 66 times the initial investment.

In 2021, Ha Tinh introduced a similar policy, offering VND200 million per ship docking at Vung Ang Port with at least two trips per month. Due to challenges in attracting ships, the support level was increased in 2022 to VND500 million ($19,600) for international ships, VND300 million for domestic ships, and an additional VND1-2 million ($39 - $78.5) per container (depending on whether it was 20-foot or 40-foot) for businesses transporting goods through the port.

From 2022 until the end of December 2024, Thua Thien-Hue (now the centrally-run city of Hue) has also implemented a pilot policy, offering VND210 million ($8,244) per ship docking at Chan May Port (minimum two trips per month) and VND800,000 to 1.1 million per container (20-foot to 40-foot) for businesses transporting goods through the port—excluding temporary imports for re-export and transit goods. Between 2022 and 2023, the province successfully attracted 65 ship visits (44 domestic and 21 international), equivalent to 7,370 TEUs or approximately 110,640 tons of goods.

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