Vingroup invests $14 billion to build logistics hub near Hanoi

In Vietnam, Vingroup, the country’s largest conglomerate and led by billionaire Pham Nhat Vuong, announced plans to invest approximately 374 trillion dong, equivalent to $14 billion, to develop a new port and logistics hub in Hai Phong. This facility, located about 100 kilometers east of Hanoi, is intended to be constructed in three phases and is projected to be completed by the year 2040. The decision reflects Vingroup's ongoing expansion strategy, driven by increasing demands across various sectors including automotive, logistics, and renewable energy. Vingroup's automotive division, VinFast, operates a 335-hectare manufacturing complex in Hai Phong where it produces electric vehicles. This investment is part of a broader initiative aimed at enhancing the company's infrastructure and boosting its operational capabilities. The conglomerate intends to fund 15% of the project's costs through its own resources, while it will raise the remaining capital through borrowings. Vingroup's recent endeavors also include the establishment of a tourism estate on the outskirts of Ho Chi Minh City and a notable commitment to build renewable energy projects that aim to generate over 25 gigawatt-hours of electricity by 2030. Vingroup's rapid growth and diversified portfolio underline its strategic positioning within Vietnam's evolving economic landscape. As they continue to seek opportunities in various sectors, the new logistics hub will significantly facilitate trade and transport, enhancing connectivity and economic activity in the region. The ambitious project paves the way for further investment and development in the area, promising to bolster local employment and contribute to Vietnam’s economic prosperity.