Section: Regional News - Vietnam needs to invest in new deep-water ports and do more to improve its inland infrastructure to achieve its economic potential, said a Singapore-based leading container carrier.

According to a recent report by Neptune Orient Lines (NOL), Vietnam enjoyed a gross domestic product growth of 8.2 percent last year and is expecting still faster growth this year. However, the shallow water round its shores means it is unable to handle container ships larger than short-distance feeder vessels, which take cargo to Hong Kong, Taiwan or Singapore for loading on to larger, long-distance ships.

"Most large shipping lines are taking a close interest in Vietnam after it joined the World Trade Organisation on January 1. The step appears to be creating a surge in trade similar to that experienced after China joined the organisation in 2001," it said.

Investment in deep-water ports would enable Vietnam to handle its own trade on larger ships, which cost less per container to use, Jim McAdam, NOL's group president for Asia-Middle East was quoted by the Financial Times as saying.

Greater investment might also allow the country to capitalise on its geographical position between Southeast Asia and China to become a trans-shipment hub, according to McAdam.

Earlier this month, Hong Kong's Hutchison Port Holdings - the world's largest - signed an agreement to build a terminal in Vietnam's southern Ba Ria-Vung Tau province. Danish-owned APM Terminals, Singapore's PSA and Dubai's DP World - the world numbers two, three and four - are all also constructing facilities, the paper said. - VNA