Russian seaport commits to developing Quang Ninh complex

A 100-hectare hub for industrial manufacturing and port operations along the Chanh River in the northern province of Quang Ninh will be constructed by the partnership between Tien Phong Industrial Zone JSC and Russia’s The Seaport of Azov. Hopefully, this project will encourage more investors from Russia to power through the recent slowdown of Russian investments in Vietnam.

September 8, 2017 marked a milestone for the cooperation ties between Tien Phong Industrial Zone JSC, in which Deep C consortium (Rent-A-Port) is a major shareholder, and The Seaport of Azov, a Russian leader in port development and operation, as the two parties agreed to request assistance from the government to transform an area of 100 hectares in the northern province of Quang Ninh’s South Tien Phong into a hub for industrial manufacturing and port operations along the Chanh River.

The memorandum of understanding (MoU) was signed on the sidelines of the 20th Session of the Vietnam-Russia Intergovernmental Commission on Trading-Commerce and Science-Technology Cooperation in Ho Chi Minh City, with the participation of approximately 150 Vietnamese and Russian businesses.

According to the MoU, the development of this industrial complex is expected to start soon if Vietnamese authorities support a quick start. The two partners have also been investing in Quang Ninh since 2016 and they each own 50 per cent of a liquid jetty in the north of Vietnam.

“This will be a great opportunity to present the Seaport of Azov’s commitment to invest in Vietnam. Our ultimate aim with this strategic cooperation framework is to draw Russian companies to invest and expand business in Vietnam in general and in the northern region like Quang Ninh in particular,” said Andrian Sinebok, chairman of the Board of The Seaport of Azov, at the ceremony.

Rent-A-Port and The Seaport of Azov’s pipelined industrial zone and port complex comes at a time when investment from Russia to Vietnam is in a slowdown. Statistics show that by the end August this year, Russian businesses registered to invest roughly $1.026 billion in 114 valid projects in Vietnam.

Also, this is a positive response to the partnership agreement between Vietnam and Russia, as at the end of June 2017, Vietnamese President Tran Dai Quang and Russian President Vladimir Putin agreed on investing more than $10 billion in both countries.

Vietnam-Russia Industrial Complex expects to welcome a new wave of Russian investment into Vietnam.

This project would be the logical continuation between the Deep C consortium and The Seaport of Azov in Euro Jetty JSC. The first investment of Euro Jetty is the liquid jetty in Dinh Vu Industrial Zone, a successful venture with over 20 investors, including American of Chevron and a list of Japanese clients.

The inking of the MOU today represents the strong drive of the two companies to deepen their relationship of more than 20 years.

Source: VIR