Adani Develop A New Port In Vietnam To Increase Global Presence

The Adani Group is exploring international port infrastructure development projects to benefit from international trade.

According to a Bloomberg report, the Adani Group is planning to build a port in Vietnam to create overseas infrastructure and benefit from growing trade in that region. It will be the fourth international port after Dar es Salaam in Tanzania, Colombo in Sri Lanka, and Haifa in Israel.

Karan Adani, the company’s managing director, and Gautam Adani’s elder son, said in an interview that Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port operator, has received “in-principle approval from the Vietnamese government” to build a port in Da Nang, Vietnam.

Reason behind the Adani Group building a port in Vietnam

He said, “Our idea is to make India a maritime hub. We are targeting countries where both production and population are high, which will lead to higher consumption. We are looking at the volumes exported from these countries.”

The report suggests that the project is still in the early planning stages and the total investment required has not been finalised.

Adani Ports currently derives about 5% of its total business from overseas operations and wants to increase this proportion to 10 percent by 2030, according to a Bloomberg report, which also includes Karan Adani.

Recent Domestic port project of Adani Group

Karan Adani said that the first phase of Vizhinjam port in Kerala will be completed by December. The company and the Kerala government will invest Rs 20,000 crore to be fully ready by 2028 to 2029.

Operations were to start by 2018, but the project was delayed due to land acquisition issues.

The proximity to international shipping routes could make it an important port in India competing with Dubai, Singapore, and Sri Lanka.

He said the company is also looking at opportunities for international projects in the Middle East, South East Asia, East Africa, Bangladesh, Sri Lanka, Maldives, Vietnam, and Cambodia as these countries have a lot of trade with India.