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DEVELOPMENT STRATEGY
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On 1 January 1995, the Vietnamese Government decided to separate infrastructure expenses from transport. Since then, the Government committed to grant fund for infrastructure upgrading and maintenance expenses which before had been paid by the railway sector as well as invest in developing infrastructure. Vietnam Railways carries out business in competitive market, has reasonable fare and pays fee to the State for the infrastructure use. In 15/TB communique issued on 20 May 1996, the Prime Minister pointed out guideline and development strategy for Vietnam Railway Corporation to the years 2000, 2010 and 2020. Regarding investment capital for infrastructure development, the Government confirmed that it would be drawn from the State Budget and paid out in terms of infrastructure use fee. The Government also agreed to use available ODA capital to grant finance to invest in infrastructure and buy equipment for Diesel locomotive.
Decision
No 06/2002/QDD-TTg on January 7th PRIME MINISTER OF THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated September
30, 1992; Article 1: To approve the Master Plan on the development of Vietnamese Railways Transport sector till 2020 with the following principal contents: 1. Master Plan’s Objectives a. The Master Plan on the development of Vietnamese railways transport till 2020 shall be served as basic for investments in building and developing rational and uniform railway networks nationwide, with scales suitable to each territorial region, forming integrated centers of railway transport infrastructures and services, facilitating the exploitation of the existing potentials and building the capability of railway transport sector. To step by step build and develop a Vietnam railway transport sector integrated and modern in terms of railway lines, station, warehouses, platforms, freight yards, signaling and telecommunication, facilities for maintenance and manufacturing of spare-parts, materials for infrastructure and railway means of transport, loading/ unloading equipment, mechanical engineering system for building, assembling, repairing railway means of transport in order to meet the passenger and freight transport demands with better quality, reasonable cost; comfort, safety, quickness and efficiency. b. The need to industrialize and modernize of railway sector shall be met on the basis of mobilizing internal resources and making investments with focus and into key areas with all capital sources available aiming at strong development, enhancing the capacity of the management system, expanding the provisions of various services, ensuring traffic safety, promoting and improving the inherited economical and technical advantages of the railway. 2. Contents and scale of major components of the Master Plan a. The railway transport shall take a share of 25% - 30% in terms of tons and ton-kms, and of 20% - 25% in terms of passengers and passenger-kms in the total transport volume of the transport sector as a whole. By the end of 2020, the rail share in urban passenger transport shall reach at least 20% of the passenger volumes in Hanoi and Ho Chi Minh city. b. To maintain the existing track gauges, consisting of 1,000mm gauge, 1,435mm gauge and dual gauge (1,000mm and 1,435mm) to upgrade and rehabilitate them meeting technical standards. When any new sections and routes are built, they must be compatible and easily connectable with the existing track gauges in such areas. Particularly, a North – South high-speed railway line shall be built with the track gauge of 1,435mm. c. To develop railway transport fleet with the orientation of diversification and rational structure, renewing the tractive and rolling stock fleets along the direction of modernization, costs reductions focusing on the development of high-speed trains, self-propelled train set, container trains, etc. To adopt advanced technologies into rail transportation and building rolling stock in order to increase the running speed of freight trains and passenger trains to 80 km/h and 120 km/h respectively by 2020. d. The major technical criteria shall be specified by the Minister of Transport after reaching agreement with the concerned bodies and comply with current regulations. e. Investments in railway infrastructure towards 2020: - The period till 2010: + To upgrade the existing routes up to specified technical grades and build a number of new sections, lines, branches linking up with key ports, industrial and economic zones throughout the country and integrating with the existing routes; to give priority to capacity building and modernizing the North – South and East – West rail line; to electrify Ha Noi – Hai Phong rail line as a basic for the development the electric traction in the next period. + Together with the building of urban railway systems in Ha Noi and Ho Chi Minh city, to construct new and integrated stations and facilities for repairing and utilizing of locomotives and rolling stock. + To renew fiber optic telecommunication systems, digital electronic exchangers, semi-automatic then automatic block signaling system, electrical centralized-control switches, automatic train stop, automatic warning level crossings system, etc. To participate into the common telecommunication market to make full use of the railway sector’s capacity . + To reorganize for the development of facilities producing construction materials, spare parts and components for maintaining and repairing activities and renewing of railway infrastructure. + To upgrade and build so as to step by step complete the system of passenger and freight stations in the key regions; particularly special attention is given to passenger stations in the center of Ha Noi and Ho Chi Minh city, which function as the central railway stations, and interchange hubs, integrating modes of transport as well as the multi-functional service centers. - Period till 2020: To complete the upgrading of railway lines up to the technical standards nationally and regionally; to track double and electrify the Ha Noi – Vinh and Sai Gon - Nha Trang lines; to continue building new routes to form a complete and integrated network meeting modern standards. On the North – South axis, beside the existing Thong Nhat (Unification) railway line, new North-South high-speed, double track railway line of 1435mm gauge shall be constructed, aiming to reduce the transit time between Ha Noi and Ho Chi Minh city to under 10 hours being able to integrate with international railway. To continue building railway loop line, urban railway systems in Ha Noi, Ho Chi Minh city and other big cities forming a completed and integrated urban transport network. The estimated investments needed for railway infrastructure up to 2020 is VND 98,051 billions. Out of which: For 2001 – 2010 period: VND 23,530 billions. (The list of investement projects in the 2001 – 2020 period in the appendix attached to this Decision). e. Investments to develop railway transport business up to 2020: - The railway mechanical engineering network for manufacturing, repairing, and maintenance of rolling stocks and equipment shall be rationally located, meeting the transport demands and consistent with the general development of the industry as well as the planning of the concerned localities and industries. - From now till 2010, to gradually phase out antiquated and technically backward, small-capacity locomotives, import locomotives with the capacities in the range of 1,500 to 2,000 HP; import integrated diesel locomotive overhauling lines so as to carry out the complete overhauling of locomotives of all type and then to assemble locomotives locally. - To mobilize internal resources to locally build high-quality and modern passenger coaches and freight wagons of various types for domestic use and export to some regional countries. - To manufacture self-propelled trains. - To strongly introduce advanced information technologies in the management and operations. - To reorganize, improve skill, train and retrain the railway staff. - The investment needs till 2020 is VND 62,870 billions. Article 2: Regarding investments, major measures and policies for meeting development needs under the approved Master Plan. a. The Ministry of Transport shall submit the Prime Minister the medium-term and long-term projects together with the proposals on the creation of investment capital, the policies on capital mobilization and use and resources of each project aiming to quickly overcome the situation of backwardness and lack of integration and under specified technical criteria of railways so as to meet the industrialization and modernization requirement, ensuring the sustainable development of Vietnamese railway sector. b. Groups of main solutions and policies: - In order to speed up the development of the railway sector, a large amount of capital shall be invested within a short time in the key projects. - For each specific project, Vietnam Railways may borrow credits
loan from the Development Assistance Fund or access to other credit
sources with interest rates in line with the preferentially treated
policies in each period for the investment in developing infrastructure,
renewing rolling stock fleet or specialized equipment, and applying
new technologies. - Vietnam Railways is a national railway organization, which should build an organizational system as a State Corporation. Article 3: Management and organization of the implementation of the Master Plan. a. The Ministry of Transport shall take the responsible before the Prime Minister for regulating and organizing the implementation of the Master Plan on the development of Vietnamese railways transport sector till 2020, and approve the detailed railway development plans of each disciplines in each period and for each region in line with the approved Mater Plan. b. Based on its respective functions and duties, Ministry of Planning and Investment, Ministry of Finance and other relevant Ministries and branches shall assume the responsibility or coordinate with one another for carry out the tasks related to the approved Master Plan. c. The provinces and cities throughout the country, especially the localities where railways run through shall have the responsibility to make the contribution to and protect the railways. d. Vietnam Railways shall have the responsibility to manage, exploit the railway infrastructure, means of transport, industrial facilities, equipment and railway operation services according to the approved Master Plan and regulations prevailing. Article 4: This decision shall become effective 15 days after its signing. Article 5: The Minister of Transport, Minister of Planning and Investment; the Ministers and the Heads of the ministerial-level agencies, the Heads of the agencies attached the Government, the General Director of Vietnam Railways; Chairmen of the People’s Committees of the relevant Provinces and centrally-managed cities shall be responsible for the implementation of the Decision.
Phan Van Khai
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