Decision No. 1436/QD-TTg approves the adjustment of the overall planning for the development of the railway transport industry in Vietnam until 2020, with a vision to 2030.

Pursuant to …;

Approving the adjustment of the Master Plan for the Development of the Railway Transport Industry in Vietnam until 2020, with a vision to 2030

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Railway Law dated June 14, 2005;

Considering the proposal of the Minister of Transport,

DECISION:

Article 1. Approving the adjustment of the Master Plan for the Development of the Railway Transport Industry in Vietnam until 2020, with a vision to 2030, with the main contents as follows:

I. Development Orientation

1. The Master Plan for the Development of the Railway Transport Industry must be consistent with the Strategy for the Development of Transport until 2020, with a vision to 2030; the Strategy for the Development of Railway Transport in Vietnam until 2020 and a vision to 2050; closely linked with the development plans of other transport industries and related plans.

2. Railway infrastructure needs to prioritize investment to take the lead, develop quickly, synchronously, reasonably, gradually and steadily, directly towards modernization, serving as a driving force to promote economic and social development; developing international railway networks connecting with seaports and neighboring countries, promoting international integration; rapidly developing urban railway networks as the core in public transportation in major cities, prioritizing Hanoi and Ho Chi Minh City in the short term.

3. Developing railway transport towards modernity, high quality, reasonable costs, speed, safety, energy efficiency, environmental protection, cost savings; linking with large distribution centers, inland container depots (ICD) and other modes of transport; handling long-distance freight and large volumes, urban public passenger transport, focusing on intra-urban and suburban passenger transport services, meeting the demands of economic and social development.

4. Concentrating state resources, maximizing foreign support for development; encouraging and mobilizing all available resources from domestic and foreign organizations and individuals to invest in infrastructure, transport services, and other supporting railway services to quickly develop the network, enhance the competitiveness of railway transport products, attract passengers and goods to use railway transport; emphasizing maintenance work on existing infrastructure to ensure effective operation, smoothness, order, safety, and sustainable development.

5. Accelerating the progress of bringing current railway lines up to technical standards and ensuring efficient operation of the existing system; gradually converting the entire network to standard gauge 1.435 mm and transitioning from diesel traction to electric traction.

6. Allocating land suitable for railway development needs, ensuring safe traffic corridors and protective zones for railway works according to the provisions of the Railway Law; developing plans for electricity demand that meet the development needs of railways.

7. Promoting the development of human resources and specialized science and technology, strengthening international cooperation; developing the railway industry to meet domestic needs and aim at exporting.

II. Development Goals

1. Developing railway transport with a synchronized infrastructure, means of transport, transport services, and industry reaching advanced and modern levels, comparable to those of advanced countries in the region, promoting growth in other economic sectors, aiming to make Vietnam basically an industrialized country by 2020.

2. Forming a complete railway network connecting economic and social centers, key economic regions nationwide, and coordinating with other modes of transport; participating in public transportation in major cities; providing seamless, fast, safe, competitive intercity and long-distance rail transport services, meeting domestic needs, facilitating international exchanges, and ensuring national defense and security.

3. Establishing and promulgating mechanisms to encourage all economic sectors to participate in investing in and operating railway transport, striving to attract non-budget capital for infrastructure construction accounting for at least 10% (by 2020) and 20% (by 2030) of total investment capital.

4. Ensuring human resources, increasing investment in material and technical facilities, updating training programs, and expanding training formats; enhancing socialization in training to ensure sufficient high-quality human resources to serve the needs of modern railway development.

III. Master Plan for the Development of the Railway Transport Industry

until 2020 and with a vision to 2030

1. Regarding railway transport:

a) Specific goals:

- By 2020: railway transport should account for a minimum of 13% of the demand for passenger movement and 14% of cargo movement in the total volume of transport of the entire transport industry; among which urban passenger transport by rail should reach at least 20% of the demand for public passenger transport in Hanoi and Ho Chi Minh City;

- Until 2030: achieving a share of 20% of the demand for passenger and cargo movement; reaching a share of 25% of the demand for public passenger transport in major cities.

b) Development planning:

- Passenger transport: focusing on developing long-distance transport services with distances of 300 to 500 km on main traffic corridors, especially the North-South, East-West corridors, and urban rail transport, intra-urban and inter-provincial rail transport based on utilizing the existing railway system, new railway construction in medium-distance sections and areas with high demand;

- Freight transportation: Promote rapid development of heavy cargo transportation services from mining areas, seaports, inland container depots (ICD), factories, large economic zones... to reduce pressure on roads, limit traffic accidents; apply modern transportation technology to meet increasingly high customer demands; - Enhance competitiveness of transportation services based on accelerating the process of shareholding reform for state-owned railway enterprises, socializing railway transportation to improve service quality, lower transportation costs, attract non-state economic sectors to participate in developing railway transportation and supporting services through establishing competitive markets and strengthening state management over railway transportation;

- Expand international, regional, and cross-border transportation linkages based on existing and future railway networks.

2. Regarding infrastructure:

a) Specific goals:

- By 2020: Complete the renovation and upgrading of the existing railway network to national first-class standards, complete the connection of railways with international seaports, factories, economic zones, mines, and major tourist centers... strive to complete the construction of new railway lines from Lào Cai to Hà Nội and Hải Phòng, and Đồng Đăng to Hà Nội; rapidly develop wheeled transportation in cities, prioritizing implementation in Hà Nội and Hồ Chí Minh; prioritize the construction of some sections of high-speed North-South railway lines; gradually upgrade and expand existing single-track electrified railways to double tracks and expand urban railway lines to meet intra-urban and suburban transportation needs as well as those of large urban areas;

- By 2030: Complete urban railway networks in Hà Nội and Hồ Chí Minh and initiate construction in other major cities; basically complete the high-speed North-South railway network; initiate construction of the Central Highlands railway network, coastal railway connecting northern provinces, and railway lines to the Mekong Delta provinces;

b) Development planning:

- By 2020, complete the construction of:

+ Renovation and upgrading of existing lines.

+ Some sections of the high-speed North-South railway, the Yên Viên - Phả Lại - Hạ Long - Cái Lân railway, Biên Hòa - Vũng Tàu railway, Lào Cai - Hà Nội - Hải Phòng railway, Đồng Đăng - Hà Nội railway, railway serving aluminum ore exploitation (Đăk Nông - Bình Thuận), Dĩ An - Lộc Ninh railway, Vũng Áng - Mụ Giạ railway, restoration of the Tháp Chàm - Đà Lạt railway, study and construction of the Đông Hà - Lao Bảo railway; railway lines connecting seaports, industrial and economic zones, newly formed tunnel mines: international gateway port at Hải Phòng, international transshipment port at Vân Phong, Cái Mép - Thị Vải port, Thạch Khê iron mine, Central Highlands aluminum ore... railway hubs: Hà Nội (Eastern Ring), Hồ Chí Minh City (Western Ring), Hải Phòng, Đà Nẵng, Diêu Trì; completion of some main urban railway lines and inter-regional railway lines in the Hà Nội and Hồ Chí Minh regions;

- By 2030, complete the construction of:

+ The Central Highlands railway network including the main axis: Đà Nẵng - Kon Tum - Đắk Lắk - Buôn Ma Thuột - Chơn Thành - Hồ Chí Minh City and branch lines: Buôn Ma Thuột - Tuy Hòa, Đắk Nông - Bình Thuận;

+ Remaining sections of the high-speed North-South railway network;

+ Urban railway networks in Hà Nội and Hồ Chí Minh City;

+ Coastal railway corridor from Nam Định - Thái Bình - Hải Phòng - Quảng Ninh, Hạ Long - Móng Cái;

+ Lines: Lạng Sơn - Quảng Ninh (Mũi Chùa), Nam Định - Thịnh Long, Mỹ Lý - Tân Kỳ...

3. Regarding railway industry:

a) Specific goals:

- By 2020: Strive to domestically manufacture railway vehicles, materials, equipment, and spare parts to meet basic maintenance, renovation, repair, and upgrade needs of the existing railway network;

- By 2030: Gradually meet the demand for railway vehicles, materials, equipment, and spare parts for new urban railway and railway projects; establish a modern railway industry;

b) Development planning:

- By 2020:

+ Locomotives: Develop from assembly industry towards manufacturing diesel locomotives for old lines with power from 2,000 to 2,500 HP and electric traction for new electrified lines with power of 5,000 kW or more; simultaneously develop self-propelled train sets (EMU) for intra-urban and suburban passenger transport; aim to achieve 1,100 to 1,200 locomotives;

+ Carriages: Focus on developing new carriage production industry to supply domestic consumption and aim for export to neighboring countries; achieve 50,000 to 53,000 carriages of various types;

+ Railway spare parts and materials (rails, sleepers, accessories, signaling systems, power supply, information, and signal systems...): produce domestically to meet maintenance needs of existing railway lines and progress towards export;

- By 2030:

Develop the production industry of railway spare parts and materials to meet the needs of new railway construction within the country and for export;

4. Regarding traffic safety:

a) Specific goals:

Gradually control and reduce railway traffic accidents across three criteria: number of incidents, number of injuries, and number of fatalities;

b) Development planning:

- By 2020:

+ Infrastructure: Eliminate all civilian level crossings, construct systems with protective barriers, collection roads, isolation fences, safety zone protection fences, and overpasses at intersections with national highways and certain provincial roads... establish safe train operation corridors throughout the system with speeds up to 120 km/h;

+ Institutional framework and human resource development: Perfect legal regulations, streamline organizational structures for railway traffic safety management; strengthen propaganda, education, and dissemination of laws; enhance training quality for vehicle operators and intensify inspection, supervision, and certification of railway transportation equipment;

+ Rescue and emergency response: Complete investment plans for rescue and emergency equipment to minimize casualties and property damage in case of accidents;

- By 2030:

+ Complete construction of isolation facilities across the entire Vietnamese railway network;

+ Complete construction of intersections between railways and roads according to the provisions of the Railway Law.

5. Regarding capital requirements, land funds, and electricity:

a) By 2020:

- Total industry capital requirement: 1,355,101 billion VND

+ Infrastructure: 1,142,557 billion VND

* High-speed railway: 505,984 billion VND

* Remaining railways: 636,573 billion VND

Of which state budget capital (accounting for 90%): 983,619 billion VND

non-state budget capital (accounting for 10%): 109,290 billion VND.

+ Locomotives and carriages: 199,726 billion VND;

+ Industrial facilities: 8,645 billion VND;

+ Traffic safety: 4,173 billion VND.

- Land fund requirement: approximately 12,685 hectares;

- Electricity requirement: approximately 4,972 million kWh/year.

b) By 2030:

- Total industry capital requirement: 1,054,979 billion VND

+ Infrastructure: 884,326 billion VND

* High-speed railway: 716,694 billion VND

* Remaining railways: 167,632 billion VND

Of which state budget capital (accounting for 80%): 707,460 billion VND

non-state budget capital (accounting for 20%): 176,866 billion VND.

+ Locomotives and carriages: 170,653 billion VND.

- Land fund requirement: approximately 7,650 hectares;

- Electricity requirement: approximately 7,900 million kWh/year.

6. Sources of investment: ODA loans; government bonds; state budget; enterprises, private individuals...

(The list, total investment amount forecast, phased investment plans for projects are detailed in the attached Appendix).

IV. Main Solutions and Policies

1. On capital: concentrate state resources strongly, maximize foreign development support sources, and have mechanisms and policies to encourage and special mechanisms to mobilize all non-budgetary resources from domestic and foreign organizations and individuals to invest in railway infrastructure, especially urban rail systems and intra-urban and inter-urban railways, key trunk lines such as the North-South railway, railways under the two-lane, one-belt economic program between Vietnam and China; establish a maintenance and development fund for railway infrastructure;

2. On transportation: enhance the competitiveness of railway transport services, create a fair competitive environment among economic sectors participating in transport business based on the corporatization of state-owned transport enterprises, accelerate the socialization of railway transport, improve service quality, and reduce transport costs;

3. On industry: encourage the application of modern technology in railway industrial facilities, encourage the export of railway industrial products;

4. On urban traffic: develop special policies to attract rapid investment in urban rail transit systems, initially in Hanoi and Ho Chi Minh City;

5. On traffic safety and environmental protection: ensure compliance with regulations on traffic safety corridors, crossing rules, planning intersections between railways and roads, and environmental protection regulations;

6. On science and technology: complete railway standards and specifications. Encourage the application of new technologies and materials in research, training, transport operations, infrastructure construction, industry, and services. Establish specialized organizations for railway science and technology research and application, testing centers;

7. On organizational management and administrative reform: perfect railway laws and regulations. Organize railway enterprises according to the Enterprise Law. Have appropriate policies and mechanisms to encourage economic sectors to participate in business activities in infrastructure, transport, industry, and railway services;

8. On human resources:

- Focus on training and improving the qualifications of management staff, scientific personnel, and skilled workers to meet the development needs of the railway industry at each stage. Quickly organize training for human resources in electrified railway technology, high-speed railways, and urban railways;

- Expand training forms: short-term, long-term, domestic and international training, classroom-based training, and self-training;

- Implement salary policies and incentives for workers operating under the special conditions of the railway industry, particularly in remote, difficult areas;

9. On international cooperation: actively engage in international cooperation, especially with countries having advanced railway industries to absorb advanced science and technology and development experience. Continue to amend and supplement legal systems, institutions, and policies to align with World Trade Organization and other international organization regulations that Vietnam is a member of;

10. The State will provide support policies for railway lines that cannot cover their costs but must be maintained to serve economic and social needs, national defense, and security requirements.

Article 2. Implementation

1. The Ministry of Transport shall take the lead and coordinate with relevant ministries, sectors, provincial people's committees to implement the "Adjustment of the Overall Master Plan for Railway Transport Development in Vietnam until 2020, with a vision to 2030"; regularly update, propose, and adjust it to suit national development requirements.

2. Ministries, sectors, provincial people's committees within their functions, tasks, and authorities shall cooperate with the Ministry of Transport to implement the tasks and goals of the adjusted overall master plan for railway transport development, ensuring consistency and synchronization with the implementation of economic and social development plans of the sector and locality.

Article 3. This Decision takes effect from the date of issuance.

Article 4. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government shall be responsible for implementing this Decision./.