Cma Cgm Invests $600 Million In New Vietnam Terminal As Trade Surges

FILE PHOTO: Containers are seen stacked up on the container ship CMA CGM Benjamin Franklin at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman//File Photo

CMA CGM Group has signed a partnership agreement with Saigon Newport Corporation (SNP) to develop a new deep-water terminal in Haiphong, northern Vietnam, marking a significant expansion of its presence in Southeast Asia.

The project, representing a $600 million investment, will see the development of Lach Huyen terminals 7&8 in the strategically positioned Lach Huyen area. The facility is designed to handle 1.9 million TEUs and is scheduled to commence operations in 2028.

This development comes at a crucial time for Vietnam’s economy, which has seen dramatic growth in container volumes, particularly in the northern region which has emerged as one of Southeast Asia’s fastest-growing economic zones.

CMA CGM’s presence in Vietnam dates back to 1989, with the company currently operating five offices across the country and employing more than 550 staff. The Group maintains a robust operational network of 29 weekly services across seven Vietnamese ports, integrated with CEVA Logistics’ intermodal network. CMA CGM already maintains substantial terminal operations in Vietnam, including co-ownership of the Gemalink terminal in Cai Mep and the Vietnam International Container Terminal in Ho Chi Minh City.

The investment comes amid significant shifts in global trade patterns sparked by President Trump’s Trade War.

Vietnam has seen increased manufacturing activity as companies relocate operations from China to avoid U.S. tariffs. Recent data shows Vietnam’s trade with both China and the United States reaching post-pandemic highs. However, the country faces potential challenges as Vietnam confronts possible 46% duties on its U.S. exports, pending White House decisions expected in July.

Despite these concerns, Vietnam has emerged as a major beneficiary of shifting trade patterns, with ocean volumes to the U.S. showing a big increase over last year.

Thailand is emerging as the biggest winner in Trump's trade war. Container volumes to the US are up 67% year over year. Vietnam volumes up 34% YoY. Source: GoSONAR pic.twitter.com/nu1FS8Otds

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