ASEAN

The ASEAN Smart Logistics Network: An Overview (ASEAN Briefing)

The ASEAN Smart Logistics Network (ASLN) is a platform that aims to promote logistics interconnectivity and integration within the ASEAN bloc.

In addition to improving connectivity among the 10-member grouping, the ASLN seeks to promote the use of smart and sustainable logistics infrastructure. It supports the ASEAN Connectivity Master Plan 2025, which is a policy promoting integration between ASEAN members.

The ASLN was launched in November 2020 with the first project being the development of the Vinh Phuc Inland Container Depot Logistics Centre (Super Port) between Singapore and Vietnam.

A year on, we look at what progress has been made and what opportunities it could bring for foreign investors in the region.

The ASEAN Smart Logistics Network in practice

So far, two projects have been launched under the ASLN: one in Vietnam, and one in Cambodia. These projects offer a window into what the ASLN looks like in practice. Details are as follows.

The Vinh Phuc ICD Logistics Center

The first project under the ASLN is the Vinh Phuc ICD Logistics Center, located in the northern Vietnamese province of Vinh Phuc. Vietnam and Singapore jointly launched it in November 2020 at an event attended by the prime ministers of both countries.

The project will see the development of an inland container depot and logistics center in Vinh Phuc, which planners dub a “Super Port”. Upon completion, it will be one of the largest logistics centers in North Vietnam, connecting 20 industrial parks by rail, roads, and air, as well as linkages with Hanoi, Hai Phong International Airport, and China’s Yunnan province.

The project is managed by Vietnam’s T&T Group and Singapore’s YCH Group and has over US$166 million in funding.

Phnom Penh Logistics Complex

In March 2021, Cambodia’s Ministry of Public Works and Transport and Singapore’s YCH Group released a framework agreement to develop the Phnom Penh Logistics Complex in Cambodia. The agreement makes it the second project to launch under the ASLN.

According to the agreement, the Phnom Penh Logistics Complex is designed to be a “modern, world-class” logistics complex, using logistics technology to improve resilience, visibility, and logistics process flow. It will also feature a training academy and startup hub to train Cambodia’s human capital in the logistics sector.

Like the project in Vietnam, the Phnom Penh Logistics Complex aims to follow YCH Group’s “SuperPort” concept. The project carries an estimated cost of US$200 million and will begin in earnest in 2022.

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ASEAN Briefing

16 November 2021