Hanoi: The Ministry of Transport has banned the construction of any more container terminals in the south of the country as the area suffers from acute overcapacity. The ban will last for two years and covers Ba Ria-Vung Tau, Ho Chi Minh City and Dong Nai. Moreover, no terminal in Ho Chi Minh City will be allowed to expand their facilities as the government looks to shift its terminal focus to the Cai Mep – Thi Vai area to the south of Vietnam’s second city.
Ports in Cai Mep-Thi Vai are operating at around 16% of their design capacity with a vicious price war breaking out leading to losses for many operators in the area.
After 2015, the ministry will consider issuing licenses for new ports based on actual demand of the market.
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