Decision No. 06/2002/QD-TTg on approving the overall planning for the development of Vietnam's railway transport industry until 2020.

Pursuant to …;

Regarding the approval of the overall planning for the development of the Railway Transport Industry in Vietnam until 2020

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PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Considering the proposal of the Ministry of Transport (report No. 4434/GTVT-KHĐT dated December 27, 2000) and the review opinion of the Ministry of Planning and Investment (letter No. 5952 BKH/CSHT dated September 4, 2001),

DECISION:

Article 1. Approve the overall planning for the development of railway transport in Vietnam until 2020 with the main contents as follows:

1. Planning objectives

a) The overall planning for the development of railway transport until 2020 serves as the basis for investment and construction to develop a rational and unified railway network throughout the country, with a scale appropriate to each territorial area, forming infrastructure and service transportation centers, creating conditions to exploit existing potential and enhance the capacity of the railway transport industry.

Gradually build the railway transport industry in Vietnam to develop synchronously and modernly in terms of routes, stations, warehouses, sidings, cargo yards, information, signaling; maintenance facilities, production of spare parts and materials serving infrastructure and transport systems, mechanical systems for new construction, assembly, and repair of transport equipment to meet the increasing demand for goods and passenger transport with high quality, reasonable cost, comfort, safety, speed, and efficiency.

b) Meet the needs of industrialization and modernization of the railway transport industry based on leveraging internal resources, focused investment from all sources to ensure sustainable development, strengthen the management system's capacity, expand service provision activities, ensure traffic safety, and enhance and improve the existing economic and technical advantages of the industry.

2. Contents and scale of the main elements of the Planning

a) Railway transport should account for 25% - 30% in terms of tonnage and ton-kilometers, and 20% - 25% in terms of passengers and passenger-kilometers in the total volume of transport of the entire transport industry. By 2020, the proportion of urban passenger transport by rail should reach at least 20% of the passenger volume in Hanoi and Ho Chi Minh City.

b) Maintain the current railway gauge, including 1,000mm, 1,435mm, and dual-gauge (1,000mm and 1,435mm) railways to upgrade and renovate to technical standards. When constructing new sections and lines of railway, they must be compatible and conveniently connected with the existing railway gauge in that region. For the North-South high-speed railway, it will be constructed according to the standard gauge of 1,435mm.

c) Develop railway transport vehicles towards diversity with a reasonable structure, modernize traction and carrying capacity to reduce costs, lower prices, focusing on developing high-speed trains, self-propelled trains, container trains, etc., applying advanced technology in transport and new vehicle construction to increase train speeds so that by 2020, freight train speed reaches 80 km/h or more, and passenger train speed reaches 120 km/h or more.

d) Main technical standards shall be stipulated by the Minister of Transport after consultation with relevant agencies and in accordance with current regulations.

đ) Infrastructure investment until 2020:

- Phase up to 2010:

+ Upgrade existing lines to the specified technical level and construct new sections, lines, and branch lines connecting to ports, industrial zones, key economic areas nationwide, and connect with existing lines; prioritize enhancing capacity and modernizing the North-South and East-West axes; electrify the Hanoi-Haiphong line to serve as a foundation for electric traction development in subsequent phases.

+ Simultaneously with the construction of urban railways in Hanoi and Ho Chi Minh City, new and synchronized stations, repair facilities, and locomotive-carriage operation facilities must be built.

+ Renew the optical cable communication system, electronic switchboard, semi-automatic signaling towards full automation, centralized electrical recording, automatic train stopping, automatic level crossing warning systems... Participate in the common telecommunications market to fully utilize the capacity of the railway sector.

+ Plan and rearrange to develop production bases for construction materials, mechanical spare parts, and accessories for maintenance and renewal of railway infrastructure.

+ Upgrade and renew to gradually complete passenger and freight stations in key areas; particularly pay attention to passenger stations in the central areas of Hanoi and Ho Chi Minh City, which are both central railway stations and transfer hubs connecting various modes of transport, as well as multi-functional service centers.

- Phase up to 2020:

Complete the upgrading of railway lines to national and regional technical standards, build additional lines to form double-track lines and electrify the Hanoi-Vinh, Saigon-Nha Trang lines, continue building new railway lines to form a complete and modern railway network. On the North-South axis, apart from the existing Thunghat Railway, a separate high-speed passenger line with a gauge of 1,435mm must be constructed to reduce travel time from Hanoi to Ho Chi Minh City to under 10 hours and have the capability to connect with international through-railway transport. Continue building urban and suburban railways in Hanoi, Ho Chi Minh City, and other major cities to form a complete and integrated urban transport network.

Estimated capital investment requirement for railway infrastructure until 2020: 98,051 billion VND.

Of which: From 2001 to 2010: 23,530 billion VND.

From 2010 to 2020: 74,521 billion VND.

(List of projects to be invested in during the period 2001-2020 attached as an appendix to this Decision).

e) Investment to develop transport business operations until 2020:

- The railway mechanical industry network for new construction, repair, and maintenance of transport equipment and facilities must be reasonably allocated to meet transport demands and align with the overall development of the industry and local planning, as well as related sectors.

- From now until 2010, gradually eliminate small-capacity, old, and technologically obsolete locomotives, import various types of high-capacity locomotives from 1,500 to 2,200 horsepower; import complete overhauling lines for diesel locomotives to overhaul all types comprehensively and move towards domestic assembly of locomotives.

- Leverage internal strength to newly build high-quality, modern passenger carriages, newly build various types of freight carriages for domestic use and move towards exporting to some countries in the region.

- Develop the construction of self-propelled train sets.

- Modernize repair and construction facilities for locomotives and carriages.

- Vigorously apply advanced information technology in management and operation of transportation.

- Organize restructuring, improve skills, train and retrain staff in the railway sector.

- Capital investment needs by 2020: 62,870 billion VND.

Of which: The period from 2001 to 2010: 12,870 billion VND.

The period from 2010 to 2020: 50,000 billion VND.

Article 2. Regarding investment and main solutions and policies to meet development requirements according to approved planning:

a) The Ministry of Transport shall submit to the Prime Minister medium-term and long-term projects, accompanied by proposals on capital investment, policies for mobilizing and using capital and resources for each project, aimed at quickly overcoming the backwardness, lack of synchronization, and inadequate technical level of railways to meet the requirements of industrialization and modernization, ensuring sustainable development of the Vietnamese railway industry.

b) Main groups of solutions and policies:

- To accelerate the development of the railway industry, a large amount of capital must be invested in a short time and concentrated on key projects.

- For each specific project, the railway industry can borrow credit from the Development Support Fund or other sources with interest rates suitable to preferential policies during each period to invest in developing infrastructure, upgrading transport equipment or specialized facilities, and applying new technologies.

- The State has economic and social policies through fare adjustments, subsidies, etc., for routes that incur losses in transportation operations but still maintain train services for civilian use, security, and defense.

- Vietnam Railways is a national railway system, requiring the early establishment of an organizational structure and general mechanism based on the model of a State-owned Corporation.

Article 3. Management and organization of implementation of the plan:

a) The Ministry of Transport is responsible before the Prime Minister for managing and organizing the implementation of the Comprehensive Planning for the Development of Railway Transportation in Vietnam until 2020 and approving detailed development plans for each specialty, phase, and region in accordance with the approved comprehensive plan.

b) Ministries: Planning and Investment, Finance, and other relevant ministries and sectors shall take responsibility or coordinate to implement matters related to the approved comprehensive plan based on their functions and tasks.

c) Provinces and cities throughout the country, especially those where railways pass through, have the responsibility to contribute to and protect railways.

d) Vietnam Railway Union is responsible for managing and operating infrastructure facilities, transport means, industrial bases, equipment, and railway exploitation services according to the approved planning and current regulations.

Article 4. THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.

Article 5. The Minister of Transport, the Minister of Planning and Investment, ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, the General Director of Vietnam Railway Union, and chairpersons of provincial people's committees directly under the central government who are involved are responsible for implementing this Decision.