Cai Mep - Thi Vai International Seaport. The seaport and logistics industry was forecast to grow significantly on the prospect of global trade recovery in 2021 (Photo: VNA) SSI Securities Company expects the revenue of the seaport and logisticsindustry would expand by 10 percent this year.
Despite being affected by the COVID-19 pandemic last year, the industry wasfuelled by expectations about Vietnam’s trade growth thanks to positive impactsof free trade agreements (FTAs) which were signed recently, including theEuropean Union – Vietnam FTA (EVFTA) and the Regional Comprehensive EconomicPartnership (RCEP) as well as expectations about an increase in investmentinflow triggered by the global production shift out of China.
“The growth prospect of the seaport and logistics industry is bright in 2021,driven by the global recovery,” SSI analysts wrote.
The COVID-19 pandemic would still be developing globally, SSI noted, however,adding that social distancing measures would be diminished and vaccines becomemore ubiquitous, SSI expected that the “new nomal” and the re-establishment ofinventory would take place in the second half of this year.
Vietnam’s exports would benefit from the recovery of global consumption but notat a very high rate because other exporting countries would also resumeproduction.
SSI predicted that Vietnam’s import-export value and total goods via seaportswould increase by around 10 percent in 2021, pushed by global recovery, FTAs’impacts and global production shift.
This expectation was also driving demand for logistics infrastructure.According to real estate services firm CBRE, the total areas of warehousesincreased by 25 percent in the north and 28 percent in the south in 2020 withthe prices up by 5 percent to 10 percent year-on-year.
SSI also pointed out that deep-water seaports would continue to be thespotlight of the industry. The expansion of Cai Mep – Thi Vai and Lach Huyen seaportswould attract big ships to Vietnam instead of Singapore and Hong Kong, thus,these seaports were expected to see increases of around 20 percent.
Despite expecting the revenue growth rate of the seaport and logistics industryat 10 percent in 2021, SSI said that the profit would grow at a single-digitrate because the largest company in this industry Gemadebt would not see growthin profit in the first year the Gemalink seaport went operational.
There were also risks, SSI pointed out. The demand for containers couldincrease in the second half of this year.
According to the Vietnam Maritime Administration, the total volume of goodstransported via ports in Vietnam rose by 9.8 percent in 2020.
Statistics of the General Statistics Office showed that Vietnam’s totalimport-export value reached 543.9 billion USD in 2020, an increase by 5.1 percentover the previous year./.
VNA
