Adani Plans to Build a Port in Vietnam to Tap Trade Opportunities

Billionaire Mr. Gautam Adani plans to build a port in Vietnam as the Indian conglomerate seeks to develop infrastructure overseas to tap opportunities from increasing trade. After Sri Lanka, this port agreement with the Vietnamese government will increase the footprint of the Adani port to the next level. Adani Ports and Special Economic Zone Ltd. has secured in-principle approval from the Vietnamese government for a greenfield development in Da Nang. Karan Adani, who is the son of Mr. Gautam Adani and the managing director of the company, mentioned this in an interview. The project, which will have container terminals and multipurpose berths to handle various types of cargo, is at an initial stage of planning, and the total investment required hasn’t been finalized yet, he said. This will be the 4th international port asset from the Adani group in recent times, as previously they acquired:

1. Haifa in Israel
2. Colombo in Sri Lanka
3. Port of Dar es Salaam in Tanzania
4. Da Nang, Vietnam.

On July 12, 2024, Adani’s new mega port in southern India saw its maiden mothership. The company intends to accelerate the development of the facility to expand its share of the international maritime trade, which is currently dominated by China. This gradual port acquisition will enhance the global presence of the Adani group, leading to improved returns for stockholders due to the global expansion plan.

Adani Port’s plan for 2030:

Adani Ports is the largest port operator in India. It gets about 5% of its total volume from international operations and wants to increase the ratio to 10% by 2030, Karan Adani said. 

The company is exploring opportunities in the Middle East, Southeast Asia, East Africa, Bangladesh, Sri Lanka, Maldives, Vietnam, and Cambodia, as these are regions where trade is flowing into India, he said. The Adani Group aims to showcase a global presence beyond India and challenge China’s dominance in this market.

Adani Ports are targeting countries with high manufacturing or population levels, leading to increased consumption. They are focusing on export volumes in these countries. According to Karan Adani, they aim for India to become a maritime hub very soon.

Adani Ports stock movement:

Adani Ports and Special Economic Zone Ltd.’s stock price is gradually increasing, currently trading at Rs. 1495.50 per share, marking a 1% increase. The stock nearly reached Rs. 150 per share today, with experts predicting further price hikes in the upcoming days due to recent international port acquisitions by the Adani group.

Conclusion: The current port development by the Adani Group in Vietnam will strengthen India’s position against China.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.