Dong Nai Port: Toward a Top-ten Port in Vietnam
During its two-decade history, Dong Nai Port has many close customers like VT Gas, Vietnam Japan Fertiliser, Shell Vietnam, Taicera Pottery, Lam Gia Shipping Co. Ltd, Trung Hieu Shipping Co. Ltd, and Sonadezi’s customers. According to authorities of Dong Nai province, Dong Nai Port has played an active role in boosting import and export activities in Dong Nai province in particular and the southern region in general. It not only served companies in industrial parks but also linked with other ports in the country to promote international trade.
Good reputation
Nguyen Manh Tien, Chairman and General Director of Dong Nai Port Joint Stock Company, was responsible for developing Dong Nai Port since the first difficult days. When he received the decision to set up Long Binh Tan Port, the first port of the company, there were only four staffs, no capital and no working office. Long Binh Tan was then a marsh and the four people had to measure the location and proceed land clearance payment. Luckily, the 4.5-ha zone had only two households and the land compensation value was about VND400 million. After knocking many doors for capital, the company eventually received VND500 million from the State Budget. After compensating land clearance, the rest of money was used to design a 2,000 tonne wharf which served the first ship in 1992. The company had to lend more money to build infrastructure like warehouses and roads. In 1995, the company built a small one-storey working office.
After Long Binh Tan had stable operations, the Dong Nai Port started expanding port networks in Dong Nai province to meet the growing transportation demand in the province and in the region. In 1995, Dong Nai Port was allocated two land plots in Phuoc Thai commune, Long Thanh district, to build two larger ports, namely Go Dau A and Go Dau B. However, the firm lacked capital to invest. Dong Nai Port had no other way than seeking capital from potential customers and the debts were arranged to be paid by ship call fees. Luckily, several partners in Vietnam, Thailand and France agreed to rent 1.3 ha to build an LPG depot and advanced 10-year rentals worth US$600,000 to the company. This valuable capital enabled Dong Nai Port Joint Stock Company to invest in building and operating the 16-ha Go Dau A Port in 1996. Besides, another partner also provided an interest-free credit of US$150,000 for the company. This loan, which was repaid by ship call fees, was used to construct working office.
Three years later, Go Dau B Port was also built by money lent from partners. Shell Vietnam loaned the company US$1.1 million, free of interest, to build a wharf of 5,000 tonnes and to level the ground. Then, after nine negotiations, Vietnam - Japan Fertiliser Company lent US$1.5 million to the company at annual interest rate of 4 per cent to upgrade the passage to serve ships of 10,000 tonnes from 5,000 tonnes.
Revealing the bold decision to lend a unit without capital, asset for mortgage and guarantor like Dong Nai Port, Mr Nguyen Quoc Khanh, former General Director of Shell Vietnam, said: “There are three factors for us to decide invest in Dong Nai Port: working style of the port director, potentiality of the company and reputation of Dong Nai Port I heard from its customers which already lent it. And, the result showed that we invest in a right place.”
Thus, reputation is the most valuable asset of Dong Nai Port. Its partners were confidently assisting it to expand operations and exploit their advantages. And, during the past 20 years, the formation and construction of Dong Nai Port remains the most vivid lesson for each staff.
Major goal
Economists said Viet Nam needed to develop its seaport system if it wanted to keep high economic and export growth in the coming time. The country has to link its seaport system with railway, road, sea and port systems and build roads from industrial parks to seaports. Dong Nai Port Joint Stock Company has spared no effort to complete its infrastructure, upgrade its capacity and buy modern equipment. With its proximity to industrial parks in the southern key economic zone like Bien Hoa 2, Tam Phuoc, Go Dau, Phu My and My Xuan, more and more customers are coming to Dong Nai Port. Cargo throughput at Dong Nai Port rises by 10 - 15 per cent annually in many years to reach the sixth position in cargo loading volume in Vietnam. In 2008, Dong Nai Port operated at its full designed capacity and handled 3 million tonnes of goods.
At present, apart from plans to upgrade passageways for ships, Dong Nai Port plans to invest VND126 billion to build a container terminal at Long Binh Tan Port by the end of 2010 and a dockyard between 2015 and 2020.
Ability to grasp opportunities, good orientation and timely investment are the factors for Dong Nai Port to grow up strongly in the past years. It was awarded the third-class Labour Medal in 2001 and the second-class Labour Medal in 2008. Its 200 staffs are working for the development of Dong Nai Port which now has three seaports covering on an area of 100 ha. Customers are assets that Dong Nai accumulates during its development history. To become one of 10 top seaports in Vietnam, Dong Nai Port is expanding its market share, diversifying operations, adding more business scopes, fostering working levels and modernising facilities.
