The city is home to one of the country’s two busiest seaports, which contributed 98% of the total throughput in the north.
In the meantime, Haiphong port’s throughput is, however, equivalent to 50% of the port in Ho Chi Minh City, which is known as the country’s business hub, a far cry from its full capacity due to the lack of a comprehensive infrastructure system.
In 2014, the city ranked only 34th among Vietnam’s 63 cities and provinces in terms of the Provincial Competitiveness Index (PCI). Infrastructure was among the issues needed to be addressed, the others being transparency and labor quality.
Recognising its weaknesses, efforts have been constantly made by the municipal authorities to improve local transport infrastructure and traffic connections with other cities and provinces, especially those owning national logistics hubs such as Hanoi and Quang Ninh province, to capitalise on its position as a northern gate to the vast seas.
Vietnam’s GDP growing from U$66 billion in 2006 to US$186 billion in 2014, or an annual average growth of 13%, has spurred the development of logistics infrastructure and the establishment of major logistics hubs supporting its international trade.
Experts predicted that the country’s fledging logistics system will grow strongly as annual growths have been recorded in the seaports in Haiphong and Ho Chi Minh City over recent time.