Transport Infrastructure Investment in Viet Nam

Mr. Nguyen Ngoc Thuyen

Deputy Director General

International Cooperation Department

Tel: + 84 4 3942 2079, Fax: + 84 4 3942 1436

Email: nnthuyen@mt.gov.vn, ldtrung@mt.gov.vn

April 2012

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

April 2012

A. Introduction

April 2012

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.

April 2012

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.

April 2012

B. Planned system of Vietnamese transport

April 2012

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.

April 2012

The Planned Expressway Network in Vietnam

Hoang Sa

Truong Sa

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

April 2012

The Planned Railway Network in Vietnam

Truong Sa

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.

April 2012 The Planned Network of Airports in Vietnam

Hoang Sa

Truong Sa

4. Sea Ports by 2020

By 2020, about 900-1.100 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

– 100,000 DWT, capacity 12 million

tons/ year at gasoline area;

- Vung Ang port to receive vessels to

30,000 DWT, capacity 5 – 5.5 million

tons/ year

April 2012 The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

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 10 – 12

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 27 – 28 million tons per year

April 2012

The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

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

2010 – 2015

April 2012

The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

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

April 2012 The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

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 – 100,000 DWT, and

passenger ships of 100,000 GRT.

April 2012

The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

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,

April 2012 The Planned Network of Sea Ports in Vietnam

Hoang Sa

Truong Sa

5. Inland waterway

• Up to 2020: Transport capacity 190-210

million tons, 530-540 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

April 2012

River Network and Management

in the North

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 cross-border 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.

April 2012

River Network and Management

in the South

C. Requirement for financing

April 2012

2011-2015, 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 4th

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.

April 2012

D. Projects calling for investment

(as attached)

April 2012

E. Important projects for Korean investors

April 2012

• HCM ring road 3: Priority Section

“Tan Van – Nhon Trach Road Construction

Project”

- Length: 26.30 Km, 6 – 8 lanes, design speed:

80 – 100 km/h. Cost around 600 Million USD.

- Schedule to be completed by 2017

- EDCF has provided Grant to do FS for the

project on PPP deal.

- Calling for Gov of Korea to support Viability

Gap Financing.

April 2012

• 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.

April 2012

THANK YOU

April 2012