On August 17, Vietnamese Deputy Prime Minister Le Thanh Long signed Decision No. 865 (865/QD-TTg), approving the implementation plan for a smart port pilot project in the freight corridors at border markers 1119-1120 and 1088/2-1089 of the Vietnam-China Friendship – Youyi Guan International Port.

Smart Port Project Pilot Implementation Plan and Objectives

1.Pilot Plan Objectives

The overall goal of this project is to develop Lang Son Province into a key import-export, trade, service, tourism, and border port economic center in the northeastern region. It aims to establish an important trade gateway between ASEAN countries, China, and other nations, transforming the Vietnamese Friendship Port into a “model port”. The project seeks to create the most modernized land port in ASEAN and the largest land-based freight trade center between Vietnam, ASEAN countries, and China.

Specific objectives include piloting the construction of a smart port to enhance land port clearance capacity and efficiency, meeting growing trade demands. Additionally, the project aims to alleviate congestion in the port area, reduce transportation and customs clearance costs for import and export goods, and create a favorable business environment. It also seeks to increase national budget revenue, combat smuggling, trade fraud, and the production and sale of counterfeit goods, while maintaining political security and social order in the border region.

2. Project Clearance Capacity

The smart port currently handles customs clearance for fruits and electronic components exported from Vietnam and other ASEAN countries, as well as electronic components imported from China. During the pilot period, the Vietnamese side will continue to negotiate with China to expand the types of import and export goods, ensuring the achievement of the project’s clearance capacity goals.

By 2027, the plan aims to increase the clearance capacity of the freight corridors at border markers 1119-1120 and 1088/2-1089 by one to two times the current level. For the 1119-1120 border marker area, the goal is to increase the number of freight vehicles cleared from 800 to 2,000-2,500 per day. For the 1088/2-1089 border marker area, the target is to increase from 400 to 800-1,200 vehicles per day.

By 2030, the project aims to increase the clearance capacity by three to four times the current level. For the 1119-1120 border marker area, the goal is to reach 3,000-3,500 freight vehicles per day, while the 1088/2-1089 area aims for 2,000-2,500 vehicles per day. The total import-export value is expected to reach approximately $85 billion for the 1119-1120 border marker area and $25 billion for the 1088/2-1089 area.

3. Project Pilot Timeline

The pilot construction plan will be implemented from the third quarter of 2024 to the end of the third quarter of 2029. The first phase (infrastructure construction) will run from the third quarter of 2024 to the end of the second quarter of 2026. The second phase (pilot implementation) will extend from the third quarter of 2026 to the end of the third quarter of 2029. Funding for the project will come from the national budget (local and central budgets, public investment funds), other proposed plans, and social financing.

Openness Level of the Friendship – Youyi Guan International Port

The Vietnam-China Friendship – Youyi Guan Smart Port project for freight transportation is the first cross-border smart port project between the two countries. Through collaborative construction of intelligent cross-border freight channels in the border port area, equipped with smart facilities and information systems, the project aims to achieve intelligent port supervision, automated cross-border transportation of goods, 24/7 unmanned customs clearance, and “one-stop” inspection.

Previously, an opening ceremony was held for dedicated freight channels in the 1088/3-1089 border marker area of the Vietnam-China border, the 1090-1091 border marker area of the Tan Thanh (Vietnam) – Pu Zhai (China) passage, and the 1104-1105 border marker area of the Coc Nam (Vietnam) – Nongrao (China) passage.

At the ceremony, Yang Chunxuan, Standing Deputy Chairman of the Lang Son Provincial People’s Committee, delivered a speech highly praising the comprehensive cooperation between Lang Son Province and China’s Guangxi Zhuang Autonomous Region. He suggested that both sides maintain close communication to ensure that all border passages and dedicated freight channels at the Friendship – Youyi Guan International Port have all the attributes and functions of an international port. Simultaneously, he called for strengthened consultations to reach agreements on measures to facilitate customs clearance and methods of goods handover.

Miao Qingwang, Vice Chairman of the Guangxi Zhuang Autonomous Region People’s Government, stated that in recent years, the neighborly and friendly cooperative relationship between Guangxi and Lang Son has continuously developed comprehensively and in-depth. The expansion and opening of the Tan Thanh – Pu Zhai and Coc Nam – Nongrao border passages at the Friendship – Youyi Guan International Port vividly reflect the increasingly close relations between the two countries, marking a significant economic event for both sides.

On August 1, the Lang Son Province Department of Industry and Trade announced that vehicles transporting goods through customs clearance routes and dedicated roads belonging to the Vietnam Friendship – China Youyi Guan Border International Port will follow procedures in accordance with international treaties such as the “Vietnam-China Road Transport Agreement,” the “Protocol on Implementation of the Vietnam-China Road Transport Agreement,” international practices, and Vietnamese domestic laws.

Analysis of Vietnam-China Border Infrastructure Construction and Economic Relations

In recent years, Vietnam’s four border provinces and China’s Guangxi have continuously deepened cooperation in economic trade, connectivity, and other fields, achieving practical results. In 2023, bilateral trade between Vietnam and Guangxi exceeded 250 billion yuan for the first time, with Vietnam remaining Guangxi’s largest trading partner for 25 consecutive years. Therefore, the opening of dedicated freight channels will create favorable conditions for promoting tourism and trade development between Vietnam and China. These channels serve as important links in the cross-border industrial chain, enhancing the clearance capacity of the Friendship – Youyi Guan International Port. This will strengthen trade exchanges, jointly promote regional economic connectivity, and continuously meet the growing trade demands of both countries’ populations.

As the economic and trade relations between Vietnam and China become increasingly close, it is time to seize the opportunities in the Vietnamese market. We will continue to pay attention to the development of Vietnam. If you have any questions about the content of this article, or want to know more about investing in Vietnam, please contact our senior consultant Jaycy. Our professional team will provide you with the latest and most comprehensive industry information and expert insights.