Hai Phong Inaugurates New Smart Container Terminal: Key Insights

The recent inauguration of the Hateco Hai Phong International Container Terminal (HHIT) has marked a significant improvement in logistics for one of Northern Vietnam’s key industrial hubs. This article examines the anticipated economic benefits for Vietnam as it seeks to strengthen its position as a competitive manufacturing center in Asia.

Following a consistent annual increase in profit and FDI, Hai Phong International Port, on April 5, officially inaugurated the new container terminal of HHIT alongside Hateco Group, the People’s Committee of Hai Phong City, and APM Terminals. As Vietnam’s competitive advantage as a manufacturing hub in Asia grows, this article explores the details of the port expansion and its proposed benefits to the Vietnamese economy.

Overview of HHIT – Vietnam’s first privately developed smart container terminal

The HHIT is the first privately developed smart container terminal in Vietnam, developed by international port development firm APM Terminal (part of Maersk Group) and Vietnamese infrastructure investment enterprise Hateco Group. The construction started in July 2022 in the area of Lach Huyen International Port, an extension of the Port of Hai Phong. This is part of a larger initiative aimed at enhancing Hai Phong Port as outlined in Vietnam’s 2020 Seaport Development Plan. The seaport has allowed Vietnam to channel consumer goods and other products produced in Northern Vietnam to US and European markets without relying on ports in neighboring countries like Singapore.

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Hai Phong Port spans 73 hectares and features a 900-meter wharf, providing a notable depth ranging from 16.8 to 18.4 meters. This depth allows the new terminal to simultaneously accommodate two very large container ships, with a total deadweight tonnage of 200,000 (over 18,000 TEU) and a maximum length of 400 meters.

Additionally, its fifth and sixth berths are equipped with state-of-the-art technology and advanced operational systems, including the NAVIS N4 port operation system that coordinates all activities, QR scanning, a 5G network, Optical Character Recognition (OCR), continuous surveillance cameras, and a Truck Appointment System (TAS).

Together, these elements enhance time efficiency, streamline processes, and boost productivity. The ESL Dubai, measuring 219 meters and boasting a capacity of 319,000 DWT, was the first vessel to arrive at the new terminal in February 2025.

Also read: Vietnam Port System: Major Upgrades Planned

HHIT’s strategic importance to the regional logistics system

The HHIT serves as a strategic component of a broader logistics network, with Lach Huyen Port playing an essential role. The development of Lach Huyen Port is supported by a network of major infrastructure projects that ensure smooth and efficient connections between industrial centers and transportation hubs.

The Tan Vu–Lach Huyen Bridge directly links the port to the mainland, enhancing logistics between regional factories and the seaport. Simultaneously, the Hanoi–Hai Phong Expressway connects the port to the capital and nearby provinces, while the Hai Phong–Ha Long–Van Don Expressway extends the corridor to Quang Ninh and the China border, allowing investors and other stakeholders to visit various factories and facilities quickly. Additionally, Cat Bi International Airport, located 15 km from the port, facilitates air cargo and business travel for international logistics operators and investors.

Owing to rising demand from visitors and industry figures, the Airports Corporation of Vietnam (ACV) has begun construction of a new cargo terminal at Cat Bi International Airport in Hai Phong. The terminal, valued at US$28.5 million, aims to enhance and expand the airport’s cargo-handling capacity while strengthening Hai Phong’s reputation as a city attractive to potential investors.

An upgrade to Vietnam’s logistics and transport system

Hai Phong Port – a key transport infrastructure of Vietnam

Currently, the Hai Phong seaport system is the second largest in Vietnam and ranks third among the world’s busiest container ports, according to the World Shipping Council. Due to its strategic location, Hai Phong serves as Vietnam’s entry point to the Pacific Rim, encompassing over 40 ports and 69 berths in the vicinity.

The HHIT, along with an overall increase in developments at this grand port, supports Vietnam’s plans to compete as an international transport hub. The port can accommodate bulk cargo ships of up to 100,000 tonnes, tankers carrying liquid or gas of up to 150,000 tonnes, and also cruise ships that weigh up to 225,000 GT. Furthermore, planned investments in holding facilities will enable longer storage durations for containers, general cargo, bulk goods, liquids, and gases, as well as other goods, resulting in increased flexibility for transport schedules.

Vision for the development of Hai Phong Port

With a total investment of US$300 million, the HHIT developers have high expectations for the immense potential this terminal can unlock for Hai Phong Port.

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Nguyen Duc Tho, the current Vice Chairman of the People’s Committee, announced that cargo traffic through Hai Phong has seen an annual increase of 12-15 percent, amounting to 190 million tonnes in 2024 and expected to rise to 212 million tonnes by the end of 2025. As Hai Phong secures additional shipping contracts, investments in various technologies aimed at enhancing operations and transport capabilities at the port are also likely to grow. The new container terminal, featuring 10 STS shore cranes, 36 electric e-RTG cranes, and 1,350 refrigerated container sockets, is set to ensure efficient port operations, rapid loading and unloading processes, while minimizing energy usage and environmental impact.

At the HHIT inauguration, the Danish Ambassador to Vietnam highlighted that this terminal is more than just an infrastructure project, exemplifying a strong, innovative partnership aimed at creating a highly efficient operational port. Additionally, the ambassador believes the terminal plays a crucial role in Vietnam’s ambitions concerning the green transition, emphasizing sustainability through advanced green technologies, automated systems, and a firm commitment to environmental protection and emission reduction.

Hai Phong’s appeal for investment

Hai Phong is one of Vietnam’s most significant engines of economic growth, featuring an infrastructure and export model founded on industrial strength, port connectivity, and strategic investment. Located on the country’s northeastern coast and home to around two million residents, the city continues to deliver exceptional economic results. For example, last year, Hai Phong’s regional economy grew by 11.01 percent, outperforming most of the country while maintaining a decade-plus streak of double-digit gains.

Key sectors

Manufacturing has been a central component of Hai Phong’s development, particularly in high-tech and export-focused sectors such as electronics, automotive manufacturing, heavy machinery, and shipbuilding. The city’s industrial production index surged by over 15 percent in 2024 alone.

What makes Hai Phong distinctive is its deliberate blend of industry and infrastructure. As Vietnam’s sole region with comprehensive access to road, rail, inland waterways, aviation, and deep-sea transport, the city is poised to enact long-term plans for sustainable growth. Its maritime infrastructure—anchored by the deep-water Lach Huyen Port—plays a pivotal role in both regional and global trade.

In 2024, the port network in Hai Phong managed over 190 million tons of cargo, establishing it as the leading shipping hub in northern Vietnam and a vital component of the country’s export supply chain. The city has evolved into a significant manufacturing hub for electronic components and consumer products, primarily driven by investments from South Korean and Japanese companies, as well as increasing presence of Chinese firms. Additionally, car parts, heavy machinery, and ship components are major export goods, alongside clothing and footwear produced for international brands.

Also read: China’s Manufacturing Presence in Vietnam: Locations and Future Growth

Foreign direct investment (FDI)

In 2024, Hai Phong’s industrial parks and economic zones attracted around US$4.35 billion in FDI, exceeding the annual target of US$1.8-2.3 billion by about double. This success brought the city’s total FDI capital to US$30.3 billion, encompassing 594 projects. Remarkably, 77 percent of these projects are in high technology, processing, manufacturing, and logistics sectors.

In the same year, businesses in Hai Phong’s industrial parks and economic zones are expected to generate approximately US$33.5 billion in total revenue, which is 105 percent of the planned figure. Contributions to the budget are anticipated to reach US$12,350 billion, or 104 percent of the forecast. Additionally, the workforce in these industrial parks and zones surpasses 210,000 individuals, reflecting a 13.5 percent rise compared to the same period last year, with an average monthly income of around VND 11.5 million (approx. US$445) per worker.

Exports and imports

Import and export play a crucial role and serve as a key driver of economic growth, with the total export turnover for 2024 projected at US$36.3 billion. This is an increase of 19.5 percent compared to the previous year, surpassing the set target by 10 percent. Export promotion initiatives have undergone significant innovation and have featured numerous events.

The import and export market continues to expand, reaching 142 countries and territories. Notably, exports to FTA ​​partner markets have seen notable increases from the previous year:

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• EVFTA markets rose by 29.48 percent;
• RCEP markets by 24.06 percent;
• CPTPP markets by 16.05 percent; and
• UKVFTA markets by 12.14 percent.

The category of processed and manufactured industrial products remains the primary driver of overall export growth, making up nearly 80 percent of the city’s total export turnover. The production and export capabilities of domestic enterprises are steadily improving, with the domestic economic sector’s export turnover projected to account for 8.7 percent of the city’s total export turnover in 2024, a 2.2 percent increase over the previous year.

The trade balance has achieved a substantial trade surplus for the fifth consecutive year, reaching US$8.2 billion. Additionally, the Korean market maintains a strategic position, accounting for a total of 40 percent of Hai Phong’s overall import and export turnover with the rest of the world.

Takeaway for investors

The newly unveiled HHIT has reinforced Hai Phong’s pivotal role in Vietnam’s logistics and transport landscape, marking the country’s first privately developed “smart port.” With state-of-the-art technology and a strategic location, HHIT is poised to enhance cargo handling capabilities, support growing demand, and align with Vietnam’s vision of becoming a global transportation hub. Investors can expect substantial growth opportunities, as cargo traffic is projected to increase significantly, bolstered by the port’s advanced infrastructure and connectivity to key industrial centers. 

(With inputs from Vu Nguyen Hanh)

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