TRANSPORT INFRASTRUCTURE DEVELOPMENT

IN

VIETNAM

Bangkok, 2017

MAIN CONTENT:

I. Vietnam geographic situation:

II. Target for Transport Infrastructure Development to

the Year 2020

1. Roads

2. Railway

3. Maritime

4. Inland Waterways

5. Aviation

III. Solutions for Transport Development

IV. Total Capital Demand For Transport Development

In 2016 – 2020.

V. Challenges For Financing Transport Infrastructure

VI. Recomentations

Vietnam is located on the eastern Indochina

Peninsula between the

latitudes 8° and 24°N, and the

longitudes 102° and 110°E.

Total area of approximately 331,210 km2.

The combined length of the country's land

boundaries is 4,639 km, and its coastline is

3,444 km long. Vietnam's land is mostly

hilly and densely forested, with level land

covering no more than 20%. Mountains

account for 40% of the country's land area,

and tropical forests cover around 42%.

Population: 92,7 mil. (2016)

5 sector of transport: Road sector, Railway

sector, Inland waterway sector, Maritime

sector, Aviation sector

I. Vietnam Geographic situation

Expressway: Expecting 2500 km to be completed

by 2020: Mainly focus on North – South

expressway;...

Standarizing other vital national highways.

Upgrade connecting roads to Lao DPR, Cambodia,

China and other GMS, ASEAN countries.

II. TARGETS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT TO THE YEAR 2020

1. Roads Sector:

Focus on upgrading, modernizing current North

– South line (passenger: 80-90km/h, cargo: 50-

60km/h).

Consider appropriate investment plan for North –

South high speed railway

Investment study for the following lines:

Lào Cai - Hà Nội

Hà Nội - Hải Phòng

Hà Nội - Đồng Đăng

Biên Hòa - Vũng Tàu

Sài Gòn - Cần Thơ

Hải Phòng - Lạch Huyện Port Connecting

railway

Railway from Central Highland to sea ports

Inter Asia railway.

Progress of Metro Construction Projects.

II. TARGETS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT TO THE YEAR 2020

2. Railway Sector:

Northern Viet Nam:

Priority on upgrading important routes (Red

River, Thai Binh River), providing 24/24 vessel

operating.

Upgrade and construction of ports: Ninh Phuc,

Da Phuc, Viet Tri, Hoa Binh, Phu Dong

Container Port,...

Central Viet Nam and Central Highland

Upgrade various important riverways.

Southern Viet Nam

Priority on upgrading important routes (Ho Chi

Minh City to Cuu Long Delta, Tien River, Hau

River), providing 24/24 vessel operating.

Constructions of new ports, container and

passenger terminal.

Planning and developing coastal shipping.

II. TARGETS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT TO THE YEAR 2020

3. Inland Waterways Sector

Northern Viet Nam:

Priority on synchronized invesment on Lach Huyen

Port to receive up to 100.000 DWT ship

Central Viet Nam:

Upgrading, construction of various ports: Nghi Son,

Cua Lo, Vung Ang, Da Nang, Dung Quat , Quy Nhon.

Development of international passenger terminal in

Hue, Da Nang, Nha Trang...

Attracting foreign investors to Van Phong Port.

Southern Viet Nam:

Priority on synchronized invesment on Cai Mep – Thi

Vai Port to receive up to 100.000 DWT ship

Investing and operating of ports, berths follow the

master plan. Development of dry ports, ICD and other logistics

infrastructure

II. TARGETS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT TO THE YEAR 2020

4. Maritime Sector

Development of flight routes under spoke-hub

methods in Ha Noi and Ho Chi Minh City.

Efficient and effective operating of current airports.

Northern Viet Nam:

Upgrading of Noi Bai International Airport, Cat Bi

International Airport.

Possibility to construct Quang Ninh Airport

Central Viet Nam:

Upgrading of Da Nang International Airport, Cam

Ranh Airport.

International transport operating to Lien Khuong

Airport.

Southern Viet Nam:

Efficient and effective operating of Tan Son Nhat

International Airport

Long Thanh International Airport.

II. TARGETS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT TO THE YEAR 2020

5. Aviation Sector

1. Harmonious development of transportation modes:

Reduce Roads Transport Market-share.

Increase Railway, Maritime and Inland Waterways

Transport Market-share.

Focus on principal transport corridors.

2. Developing a modern, synchronized transport

infrastructure system on the following basis:

Appropriate use of recourses.

Priority on influential projects.

Priority on connecting different transportation

modes.

Priority on important economic centers.

III. SOLUTIONS FOR TRANSPORT DEVELOPMENT

3. Enhance Transport Corporation efficiency,

effectiveness and competitiveness.

4. Enhance the role of state management.

5. Policy reform for a transparent, clear legal

framework.

6. Utilization of new, modern technology in:

Construction

Transport Management

III. SOLUTAIONS FOR TRANSPORT DEVELOPMENT (Cont)

Total demand: 43 billion USD

For implementing ODA projects which signed financing agreements:

6,25 billion USD

For ODA projects in preparation process: 3,67 billion USD

IV. TOTAL CAPITAL DEMAND FOR TRANSPORT DEVELOPMENT IN 2016 - 2020

Advantages:

+ The donors (WB, ADB, JICA, EDCF) have a high commitment and willing to

finance fund for Vietnam especially for investment in transport infrastructure.

+ Low interest (0,1%-1,25%), long term repayment (25-40 year)

+ High experiences in preparation projects.

Disadvantages:

+ Not allocation sufficent funds for implementation project (State budget).

+ The process of capital mobilization is complicated.

V. CHALENGES FOR FINANCING TRANSPORT INFRASTRUCTURE

1. Using Public Private Partnership (PPP) to reduce the budget burden.

2. Improving mobilization ODA fund for infrastructure connectivity.

3. Focus on investing in key infrastructure connectivity.

VI. RECOMENTDATION: