Vietnam Invests in its Future

Even in a stagnant global economy, hemispheric trade can be enhanced by improved logistical networks.

The Vietnamese government has invested billions of dollars in that nation’s infrastructure and this bet is slowly beginning to pay dividends, say analysts for the London-based think tank, Transport Intelligence.

In its recent report – Vietnam Logistics 2009 – TI analysts note that the Vietnamese government is also encouraging foreign direct investment in projects such as the Cai Mep Container Port near Ho Chi Minh City in the Mekong River delta.

“One of the most obvious logistics-related benefits to Vietnam from increased investment in transport infrastructure has been enhanced road links with its neighbors.,” the report notes. “The Kunming-Hekou-Hanoi-Haiphong Corridor has allowed road freight operators such as TNT and Kerry Logistics to connect the country to their regional ground networks, bypassing ports and airports and hence reducing international freight costs by up to 30 percent.”

There may be a NAFTA lesson here, too, for U.S. lawmakers considering improvements in our own ailing infrastructure.