VCBS analysts said there are several reasons for this.

They shared some common advantages with the rest of the country like the high growth in Vietnam’s exports and imports thanks to free trade agreements it has signed with several countries that are starting to take effect.

Market Research Company Fitch Solutions has forecast Vietnam’s trade to grow at an annual rate of 11 per cent between 2021 and 2024.

The Government’s pro-active investment in the logistics infrastructure in recent years has helped attract supply chains from many countries, helping increase imports and exports that pass through the country’s ports.

They said in the past huge volumes of exports from the south to China were transported to northern ports by sea and then by road to the Chinese border.

But recently the Chinese government has tightly controlled border trade with other countries, and as a result a majority of goods from the south are now transported directly by sea to China, significantly decreasing the volume of freight handled by northern ports like Hai Phong, they pointed out.

However, the most important reason for the southern seaport system to do well is the development of deep-water facilities at some locations, particularly Ba Ria – Vung Tau Province.

Industry insiders concurred with the analysts, saying deep-water ports are increasingly preferred around the world since they could handle large vessels like large container ships and bulk carriers.

Meanwhile, according to the SSI Securities experts, the increasing demand for cargo transportation has seen larger and larger container vessels being built, which only deep-water ports can handle.

With a coastline stretching over 3,000km, Vietnam has a maritime and inland waterway transport system that plays an important role in the country’s socio-economic development.

Every year its ports handle 90 per cent of imports and exports.

As of April this year there were 286 ports in the country with a total wharf length of 96km, more than 4.5 times the figure 20 years ago.

They handled total cargo of more than 692 million tonnes, 8.4 times the volume in 2000.

The volume of containers they handled increased by more than 15 times in the 2001-2021 period.

Recognising this great potential of deep-water ports as well as the country’s natural advantages, the Government has approved a new master plan for the development of the seaport network with top priority given to deep-water ports.

The master plan will take advantage of the favourable geographical and natural conditions and technological advancements to ensure comprehensive development of ports.

It will focus on investment in key ports, particularly deep-water facilities, to make them the pillars of the maritime economy and promote the development of the logistics industry.

Analysts said it is important that the Vietnam Maritime Administration frequently assesses the situation to amend the development orientations in a timely manner in line with evolving needs.

They said special attention should be paid to developing ports in the Mekong Delta, which has an abundance of agricultural products for export but lacks a well-developed port system.

A deep-water port would, together with Can Tho Airport, promote the region’s economic development, they added.

Source: Vietnam News