VIETNAM TRANSPORT INFRASTRUCTUREODA from Japan’s Government Fiscal year Funding source (Yen bil.) ODA loan Grant Aid and Technical Cooperation Total 2008 83.2 1.4 84.6 2009 145.6

VIETNAM TRANSPORT INFRASTRUCTURE

‐ ROLE IN ECONOMIC DEVELOPMENTand DEVELOPMENT DIRECTION IN NEXT 10 YEARS ‐

Mr. Ngô Thịnh ĐứcChairman, Vietnam Road Association (VRA)(Former Vice Minister, Ministry of Transport)

12 June 2013

(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013

1. Overview of Vietnam Transport Infrastructure System

• Air transport 20 airports (6 international airports) Up to B747, B777: 3 airports (Nội Bài,

Đà Nẵng, Tân Sơn Nhất) Up to A321: 11 airports (Cát Bi, Vinh,

Đồng Hới, Phú Bài, Chu Lai, Phù Cát, Cam Ranh, Buôn Ma Thuột, Liên Khương, Cần Thơ, Tuy Hoà)

Up to ATR72, F70: 6 airports (Điện Biên, Pleiku, Côn Sơn, Cà Mau, Rạch Giá, Phú Quốc)

• Road 252,669 km (18,383 km national highways). North‐South Expressway, expressway

connecting focal economic zones with international ports: on going

• Rail 3,143km (2,531km mainline) Density 7.9 km/1,000 km2.

• Inland waterways 2,360 rivers and canals of 41,900 km River density 0.127 km/km2, 0.59 Km/1,000

persons 15,500km in operation 108 inland ports

• Shipping 37 seaports, 350 berths (45.000m) Throughput capacity of 350‐370 million tons/year

(290 million tons in 2011). Ports for 100,000 ton vessels and container ports

are available. An international gateway port under construction.

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Compared to the year 2000• Road

Important national highways upgraded,especially for major bridge along NH1

Construct North-South Expressway andexpressway connecting focal economic zones

road density increased from 0.66 km/km2 to0.77 km/km2.

• Railway travel time shortened (42 hours to 29 hours on

North-South railway, 10 hours to 8 hours onHanoi - Lao Cai line);

Yen Vien – Pha Lai – Ha Long – Cai Lan linecommenced.

• Shipping Phase 1 completed for major general seaports

upgrade (Cai Mep – Thi Vai, Cai Lan, HaiPhong, Cua Lo Port, Vung Ang, Tien Sa, QuyNhon, Nha Trang, Saigon and Can Tho Port)

Throughput capacity 110 million tons (2000)improved to 300 million tons (2010).

Improvement of navigational channels: HauRiver (Can Tho Port) and Lach Huyen Port

• Airport Improved and upgraded international airports,

(5 airport: Noi Bai, Tan Son Nhat, Can Tho,Cam Ranh, Phu Bai), and domestic airports(7 airport: Phu Cat, Con Son, Vinh, Dien BienPhu, Pleiku, Dong Hoi, and Lien Khuong).

Passenger throughput capacity 4.9 million(2000) improved to 41.8 million (2010).

Passenger terminal development, runwayextension in Da Nang Airport

Development of Duong To Airport Development of Terminal T2 at Noi Bai Airport Procedures on going for Long Thanh Airport

Tan Son Nhat airport (Ho Chi Minh city)

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Compared to the year 2000Criteria Unit Year 2000 Year 2012

Road density Km/km2 0.66 0.77

Seaports/Berth length No. (m) 37 (45,000)

Airports in operation No. 18 20

Passenger volume Mil. Pax/year 822 2,194

Passenger movement Mil. Pax‐km 35,624 98,079

Freight volume Mil. tons/year 252 802

Freight movement Mil. Ton‐km 63,164 218,780

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Impacts of Infrastructure Development on Economic Growth in Vietnam

Criteria Unit Year 1995

Year 2000

Year 2005 Year 2010

Year 2011

Population 000 persons

71,996 77,635 83,106 88,971

GDP VND bil.(mil. USD)

228,892(11,445)

441,646(22,082)

839,211(41,960)

1,980,914(99,046)

2,535,008(126,750)

Total movement of import/export products

VND bil.(mil. USD)

13,604(680)

30,119(1,506)

69,208(3,460)

157,075(7,854)

203,655(10,182)

Export VND bil.

(mil. USD)

5,449

(272)

14,483

(724)

32,447

(1,622)

72,237

(3,612)

96,906

(4,845)Import VND bil.

(mil. USD)

8,155

(408)

15,636

(782)

36,761

(1,838)

84,839

(4,242)

106,750

(5,338)

1USD ≈ 20,000 VND

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Strategic Orientations for Infrastructure Development by 2020

• Road transport: To give priority to investment, completion of NH1 upgrade and widening to 4 lanes. To develop a number of sections of

North‐South expressway in focal economic zones expressways in the 2 ‐ economic ‐ corridor and 1 ‐ economic ‐ belt of Vietnam ‐ China radial and circular expressways in Hanoi and HCMC metropolitan areas

Ho Chi Minh Highway To open the whole line to traffic upgrade Central Highland section upgrade connections to seaports and economic zones

To develop roads in East‐West Corridor (linking Vietnam’s seaports with neighboring countries, including Laos, Thailand and Cambodia)

• Railway transport: To focus on upgrading and modernizing the existing North‐South railway To study for new semi‐high speed railway line in the 2 ‐ economic ‐ corridor and 1‐ economic ‐

belt of Vietnam ‐ China To continue study on feasible alternatives for adequate development plan of the semi‐high speed

railway To study for new railway connections: Vũng Áng‐Cha Lo (Mụ Giạ), connections from Central

Highland to seaports in service of alumina/aluminum production in the Central Highland provinces To develop new standard‐gauge railway lines (HCMC ‐ Vung Tau, HCMC ‐ Can Tho, Dĩ An ‐ Lộc Ninh

line to connect with trans‐Asia railway line)

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• Air transport: To upgrade in an integrated manner international airports of Noi Bai and Cat Bi, where Noi Bai

will become the international gateway airport of the Northern Region To restore operations in airports of Gia Lâm, Nà Sản and Thọ Xuân To study for development of Quang Ninh Airport and Lao Cai Airport To continue with upgrade of Chu Lai Airport to a regional freight transit hub To promote public‐private partnership for accelerated progress of the Long Thanh Airport

• Seaport: To focus on development of Lach Huyen Port to receive vessels up to 100,000 DWT (8,000TEU) To continue development of seaports, container terminals and exclusive terminals to meet

demands in certain periods To develop passenger terminals in Hải Phòng, Quảng Ninh, Cửa Lò, Vũng Áng, Đà Nẵng, and

Dung Quất To develop exclusive freight terminals to serve thermal power plant, alumina export To promote foreign investors to participate in developments of Van Phong International

Transshipment Port To develop new navigational channel to Hau River via Quan Chanh Bo canal for vessels of

10,000 DWT at full load (or vessels of 20,000 DWT with reduced load), in connection with expansion and upgrade of Can Tho – Cai Cui port group into the gateway of the Mekong River Delta Region

Strategic Orientations for Infrastructure Development by 2020 (cont’d)

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• Inland Waterway Transport: To ensure technical standards and navigational safety 24/7 for important waterways. To upgrade and develop new major ports, freight terminals (Ninh Phuc, Da Phuc, Viet Tri,

Hoa Binh, and Phu Dong Container Terminal) To upgrade and develop new passenger ports and terminals in Hanoi, Hai Phong and

Quang Ninh.

Strategic Orientations for Infrastructure Development by 2020 (cont’d)

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ODA from Japan’s Government and Roles of Japanese Companies

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ODA from Japan’s Government

Fiscal year Funding source (Yen bil.)

ODA loanGrant Aid and Technical

CooperationTotal

2008 83.2 1.4 84.6

2009 145.6 3.5 149.1

2010 86.6 3.5 90.1

2011 270.0 5.4 275.4

Total 20 years (1992‐2012) 1,836.0 83.4 1,914.9

(Source: Report of JICA Vietnam)

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Roles of Japanese Companies• The Government of Japan provided preferential loans for:

– Weak bridges along NH1 and the North‐South railway line – Hai Van Road tunnel in the Central Region – Can Tho Bridge in the Mekong River Delta– International seaports in the three focal economic zones (Hai Phong in the North, Cai Mep – Thi

Vai in the South, and Da Nang in the Central)– Passenger terminal in Tan Son Nhat Airport, and ongoing new terminal in Noi Bai Airport– Thanh Tri Bridge and Ring Road 3 of Hanoi– East‐West Highway in Ho Chi Minh City– Various sections of the North‐South Expressway

Transport infrastructure in Vietnam notably improved,attracting more investments into socio‐economic developments nationwide,and into focal economic zones

• Japan is one of the top countries making FDI into Vietnam (1,555 projects, committed 24,381.7 million USD)

• Finalizing institutional framework to call for private sector participation into infrastructure development based on private‐public partnership (PPP) scheme

• Look forward to participation by Japanese companies with funding capacity and modern technologies into transport infrastructure development, particularly LachHuyen Port, Long Thanh Airport, and expressways using PPP scheme.

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Cooperation between VRA and Japan

• Vietnam Road Association (VRA) has signed an Agreement of Cooperation with Japan Society of Civil Engineers (JSCE)

• VRA will sign, agreement with Japan Road Association (JARA)

• Agreements include strengthening cooperation and supporting members of associations

• We commit to provide support to Japanese companies’ activities in Vietnam

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VIETNAM TRANSPORT INFRASTRUCTUREODA from Japan’s Government Fiscal year Funding source (Yen bil.) ODA loan Grant Aid and Technical Cooperation Total 2008 83.2 1.4 84.6 2009 145.6

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