VIETNAM TRANSPORT INFRASTRUCTURE ‐ ROLE IN ECONOMIC DEVELOPMENT and DEVELOPMENT DIRECTION IN NEXT 10 YEARS ‐
Mr. Ngô Thịnh Đức Chairman, 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 2 Infrastructure System
• 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 • Air transport persons 20 airports (6 international airports) 15,500km in operation 108 inland ports Up to B747, B777: 3 airports (Nội Bài, Đà Nẵng, Tân Sơn Nhất) • Shipping 37 seaports, 350 berths (45.000m) Up to A321: 11 airports (Cát Bi, Vinh, Throughput capacity of 350‐370 million tons/year Đồng Hới, Phú Bài, Chu Lai, Phù Cát, (290 million tons in 2011). Cam Ranh, Buôn Ma Thuột, Liên Ports for 100,000 ton vessels and container ports Khương, Cần Thơ, Tuy Hoà) are available. An international gateway port under Up to ATR72, F70: 6 airports (Điện construction. Biên, Pleiku, Côn Sơn, Cà Mau, Rạch Giá, Phú Quốc) (C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 Compared to the year 2000 3 • Road • Airport Important national highways upgraded, Improved and upgraded international airports, especially for major bridge along NH1 (5 airport: Noi Bai, Tan Son Nhat, Can Tho, Construct North-South Expressway and Cam Ranh, Phu Bai), and domestic airports expressway connecting focal economic zones (7 airport: Phu Cat, Con Son, Vinh, Dien Bien road density increased from 0.66 km/km2 to Phu, Pleiku, Dong Hoi, and Lien Khuong). 0.77 km/km2. Passenger throughput capacity 4.9 million • Railway (2000)improvedto 41.8 million (2010). Passenger terminal development, runway travel time shortened (42 hours to 29 hours on extension in Da Nang Airport North-South railway, 10 hours to 8 hours on Development of Duong To Airport Hanoi - Lao Cai line); Development of Terminal T2 at Noi Bai Airport YenVien–PhaLai–HaLong–CaiLanline Procedures on going for Long Thanh Airport commenced. • Shipping Phase 1 completed for major general seaports upgrade (Cai Mep – Thi Vai, Cai Lan, Hai Phong, Cua Lo Port, Vung Ang, Tien Sa, Quy Nhon, Nha Trang, Saigon and Can Tho Port) Throughput capacity 110 million tons (2000) improved to 300 million tons (2010). Improvement of navigational channels: Hau River (Can Tho Port) and Lach Huyen Port
Tan Son Nhat airport (Ho Chi Minh city) (C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 4 Compared to the year 2000
Criteria 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
Mil. Freight volume tons/year 252 802
Freight movement Mil. Ton‐km 63,164 218,780
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 5 Impacts of Infrastructure Development on Economic Growth in Vietnam
Criteria Unit Year Year Year 2005 Year Year 2011 1995 2000 2010 Population 000 71,996 77,635 83,106 88,971 persons GDP VND bil. 228,892 441,646 839,211 1,980,914 2,535,008 (mil. USD) (11,445) (22,082) (41,960) (99,046) (126,750) Total VND bil. 13,604 30,119 69,208 157,075 203,655 movement of (mil. USD) (680) (1,506) (3,460) (7,854) (10,182) import/export products Export VND bil. 5,449 14,483 32,447 72,237 96,906 (mil. USD) (272) (724) (1,622) (3,612) (4,845) Import VND bil. 8,155 15,636 36,761 84,839 106,750 (mil. USD) (408) (782) (1,838) (4,242) (5,338) 1USD ≈ 20,000 VND
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 Strategic Orientations for 6 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)
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 Strategic Orientations for 7 Infrastructure Development by 2020 (cont’d)
• 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 Sảnand 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, CửaLò, Vũng Áng, ĐàNẵng, 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
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 Strategic Orientations for 8 Infrastructure Development by 2020 (cont’d)
• 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.
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 9 ODA from Japan’s Government and Roles of Japanese Companies
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 10 ODA from Japan’s Government
Fiscal year Funding source (Yen bil.) Grant Aid and ODA loan Technical Total Cooperation 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)
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 Roles of Japanese Companies 11 • 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 Lach Huyen Port, Long Thanh Airport, and expressways using PPP scheme.
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013 12 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
(C)Mr. Ngô Thịnh Đức, Institute for Transport Policy Studies, 2013