Transport Infrastructure Investment in Viet Nam
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1 Transport Infrastructure Investment in Viet Nam Mr. Nguyen Ngoc Thuyen Deputy Director General International Cooperation Department Tel: , Fax: nnthuyen@mt.gov.vn, ldtrung@mt.gov.vn
2 Outline A. Introduction B. Planned system of Vietnamese transport 1. Expressway/Highways 2. Railway 3. Airport 4. Seaport 5. Inland waterway C. Requirement for financing D. Projects calling for investment E. Important projects for Korean investors
3 A. Introduction
4 Ministry of Transport (MOT) is responsible for state management of road, railway, maritime, aviation and inland waterway, and managing transport services as prescribed by law. Recently, transport system has been improved, however not yet met the demand.
5 Past years, in order to diversify mobilizing capital, other ways of financing introduced (in addition to traditional state budget) such as PPP, BOT, BT (ex: BT project: Deo Ca pass, Phu My bridge). The Government of Vietnam (GoV) has prepared a Public Private Partnership (PPP) Framework Policy to provide and alternative means of funding for developing and financing PPP projects in Vietnam, Decree on investment following BOT and BT forms.
6 B. Planned system of Vietnamese transport
7 1. Expressway by 2020 North South expressway; Northern expressways: seven routes around Hanoi capital region with total length 1,099km; Central region Western Highlands expressway: Three routes with total length of 264km; Southern expressways: seven routes with total length of 984km; Ring Roads for Ha Noi and Ho Chi Minh City. Hoang Sa Truong Sa The Planned Expressway Network in Vietnam
8 2. Railway by 2020 & vision 2030 Urgent: upgrade North-South railway line Complete the following items by 2020: Some North South railways, Yen Vien Pha Lai Ha Long Cai Lan railway, Bien Hoa Vung Tau, Lao Cai Hanoi Hai Phong railway, Dong Dang Hanoi railway; Complete the following items by 2030: Coastal Railway Nam Dinh Thai Binh Hai Phong Quang Ninh, Ha Long Mong Cai Conduct a FS to: Ha Noi Vinh, Ho Chi Minh Nha Trang high speed railway Truong Sa The Planned Railway Network in Vietnam
9 3. Airports by 2020 and vision 2030 Until 2020: By 2020 capacity 63 million passengers and 1 million tons, 26 operational airports including international airports at Noi Bai, Cat Bi, Phu Bai, Da Nang, Chu Lai, Cam Ranh, Tan Son Nhat, Long Thanh, etc; Until 2030: (i) Continuing to develop existing airports including the 10 international airports, (ii) During this period, continuing to study, plan, new construction of small-scale airports to serve for helicopters, air-taxi, general aviation activities in provinces and cities without airports. Hoang Sa Truong Sa The Planned Network of Airports in Vietnam
10 4. Sea Ports by 2020 By 2020, about million tons through seaports Central region: Improving and expanding ports: - Cua Lo port to receive vessels to 10,000 DWT, capacity 4 6 million tons/ year; - Nghi Son port to receive vessels to 10,000 DWT, capacity 5 6 million tons/ year for at general wharf; vessels to 30,000 DWT, capacity 4 million tons per year at cement area; and vessels 80, ,000 DWT, capacity 12 million tons/ year at gasoline area; - Vung Ang port to receive vessels to 30,000 DWT, capacity million tons/ year Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
11 4. Sea Ports by 2020 Central region: Improving and expanding ports: - Da Nang port group: Tien Sa port to receive vessels to 30,000 DWT, Lien Chieu port to receive vessels to 50,000 DWT, to increase the capacity of the port group to million tons per year; - Quy Nhon port to receive vessels to 30,000 DWT, capacity 8 9 million tons/ year; - Ba Ngoi port to receive vessels to 30,000 DWT, capacity 2.5 million tons/ year; - Nha Trang port to receive vessels to 20,000 DWT, capacity 1 million tons/ year; - Dung Quat port to receive vessels to 30,000 DWT at general wharf, 20,000 DWT for crude oil and 30,000 40,000 DWT for refined products, with total capacity of the port group of million tons per year Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
12 4. Sea Ports by 2020 Southeastern region: Sea port group of Ho Chi Minh city include: Sai Gon port (Sai Gon river), Nha Be port (Nha Be river), Cat Lai port (Dong Nai rover), Hiep Phuoc port (Soai Rap river) serving direct import / export commodities of Ho Chi Minh City and southern key economic zones: capacity of port group: 35 million tons/ year, receiving ships of all goods such as bulk goods to 25,000 DWT, container vessels to 20,000 DWT, liquid goods to 30,000 DWT, passenger ships to 50,000 DWT. From Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
13 4. Sea Ports by 2020 Southeastern region: Dong Nai sea port group includes Dong Nai port (Dong Nai river), Phu Huu port (Long Tau Nha Be rivers), Ong Keo port (Long Tau river), Go Dau A and B port, Phuoc An port (Thi Vai river) serving industrial zones in Dong Nai province. The capacity of the sea port group is 24 million tons/ year, receiving vessels of 30,000-30,000 Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
14 4. Sea Ports by 2020 Southeastern region: Ba Ria Vung Tau sea port group includes Go Dau C port, Phu My port, Cai Mep port (Thi Vai river), Vung Tau port (Ben Dinh Sao Mai ), Dinh river port (Dinh river). The port group is an international port group serving both industrial zones in the locality and supporting the sea port groups of Ho Chi Minh city and Dong Nai. The capacity of the sea port group is 41 million tons/ year, ports on Thi Vai river are capable of receiving cargo carriers, bulk carriers of 50,000-70,000 DWT, container ships of 50,000 80,000 DWT, liquid tankers of 80, ,000 DWT, and passenger ships of 100,000 GRT. Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
15 4. Sea Ports by 2020 Mekong delta region: Expanding, improving Can Tho port (including Hoang Dieu, Cai Cui and Tra Noc areas) to become the key port for the Mekong delta capable of receiving vessels 15,000 20,000 DWT, capacity of the port group is 7 million tons/ year; expanding, improving local seaports such as My Tho (Tien Giang) for vessels of 3,000 5,000 DWT; Vinh Thai (Vinh Long) for vessels of 3,000 DWT, My Thoi (An Giang) for vessels of 5,000DWT, Cao Lanh (Dong Thap) for vessels of 3,000 DWT, Nam Can Ca Mau for vessels of 3,000 5,000 DWT, Hoang Sa Truong Sa The Planned Network of Sea Ports in Vietnam
16 5. Inland waterway Up to 2020: Transport capacity million tons, million passengers Fleet 12 million tons and 1 million passengers Channels: technically improve 12 routes in Red river delta and 14 routes in Mekong delta Ports: improve and build 82 goods and passenger ports in the North and the South (41 ports for each region) Total investment for inland waterway infrastructure is about $2B up to 2020 River Network and Management in the North
17 5. Inland waterway Develop and improve navigation conditions to increase international trade opportunities for the mutual benefit; Provide the knowledge base and services to support shipping activities; Ensure the country commitment to cooperate for national and regional initiatives Develop an appropriate legal regime ensuring effective freedom of regional and international crossborder navigation on the Mekong and to ensure its implementation and sustainability. Promote and realize the concept of environmental standards for clean river transportation, focusing on strategic prevention of environmental damage. River Network and Management in the South
18 C. Requirement for financing
19 , capital requirement for projects is about 800 trillion VND, or around US$40 billion. Some projects: Highway projects such as Quang Ngai Quy Nhon expressway (US$ 1.75B); Quy Nhon Nha Trang expressway (US$ 1.5B); Hanoi 4 th Ring Road (US$3.25B). In the aviation sector, projects include Chu Lai international airport (US$ 1.9B); Long Thanh airport (US$ 5.15B). In the rail sector, projects include Bien Hoa Vung Tau railway (US$ 0.75B); bauxite mining railway Dak Nong Binh Thuan (US$ 0.725B); Ho Chi Minh city Can Tho railway (US$1.4B). In the sea port sector, projects for construction of 2 wharves in Cai Mep Thi Vai ports complex (Ba Ria Vung Tau) have investment scale less than US$100M, whilst investments in Da Nang international port and Van Phong International Transshipment Port have been prioritized for private investors in the form of PPP.
20 D. Projects calling for investment (as attached)
21 E. Important projects for Korean investors
22 HCM ring road 3: Priority Section Tan Van Nhon Trach Road Construction Project - Length: Km, 6 8 lanes, design speed: km/h. Cost around 600 Million USD. - Schedule to be completed by EDCF has provided Grant to do FS for the project on PPP deal. - Calling for Gov of Korea to support Viability Gap Financing.
23 Widening existing NH1 from Ha Tinh to Can Tho: Length: 1050 km, divided into 22 sections (each section about 70km) Total investment: 91 trillion VND (4,4$ B) The MOT is doing FS for the project on BOT deal GoV expects support 30% of budget, the rest returned on toll fee collections + combined land use rights done one case by case.
24 THANK YOU
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