T&T Group partners with IFC and Singapore’s YCH Group to develop an int’l logistics “super port”

Located roughly 60 kilometers outside of Hanoi in the northern province of Vinh Phuc, the Vinh Phuc Inland Container Depot (ICD) Logistics Centre project will be developed by T&Y Superport Vinh Phuc Joint Stock Company, a joint venture between Singaporean leading logistics company YCH Group and Vietnamese conglomerate T&T Group.

The project will be one of the country’s first ICDs with multi-modal facilities, including an international distribution center and an inland port for rail connectivity and air transportation. The establishment of such a logistics hub in the North of Vietnam will significantly improve the processing of domestic and international trade, reducing logistics costs and improving the country’s trade competitiveness as it aims to become a new regional supply-chain hub.

Over the next 12 months, IFC will help YCH Group and T&T Group develop a bankable and sustainable project by providing technical expertise, helping the developers mitigate risk and strengthen environmental and social standards.

IFC will also support the sponsors in making the logistics hub’s infrastructure green and sustainable, supporting Vietnam in its efforts to reach its net zero carbon emissions target by 2050. IFC also has the right to act as lead arranger of long-term financing for the Vietnam SuperPort. Total investment capital for the project is expected to be over VND4,500 billion ($199 million).

The agreement marks an important milestone in the relationship between IFC and YCH Group as the logistics company expands its regional network in Southeast Asia.

“The signing ceremony with IFC is yet another significant milestone for the entire connectivity initiatives of which YCH Group intends to invest more than $2 billion in the next five years to enhance ASEAN connectivity to improve intra-ASEAN trade, as well as trade with the rest of the world,” said Dr. Robert Yap, Executive Chairman of YCH Group.

Do Quang Hien, Chairman of T&T Group, said: “We are confident that Vietnam SuperPort’s multimodal logistics hub built with cutting edge technologies will reduce the cost of logistics and improve time to market, thereby improving trade connectivity to the world, boosting our economy as well as contributing to the symbiotic and sustainable growth of Vietnam.”

The facility is strategically located near local ports, Noi Bai International Airport, and border posts with China and Lao PDR. It is also situated within reach of 20 industrial parks, enabling it to become a supply chain hub for local manufacturing operations.

The Vietnam SuperPort is expected to capture roughly 10 percent of the total container traffic generated in the country’s northern provinces once it comes into operation. It will help improve the efficiency of Vietnam’s logistics sector and reduce the cost of logistics services, which remain high in Vietnam, accounting for 21 percent of its gross domestic product in 2019, compared to less than 10 percent in OECD countries.