Decision No. 355/QD-TTg Approving the Adjustment of the Strategy for the Development of Transport in Vietnam until 2020, with a Vision to 2030

Pursuant to …;

Regarding the approval of the adjustment of the strategy for the development of transportation in Vietnam until 2020, with a vision until 2030

_______________________________

 PRIME MINISTER

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

Considering the proposal of the Ministry of Transport,

DECISION:

Article 1. Approve the adjustment of the Strategy for the Development of Transportation until 2020, with a vision until 2030, with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Transportation is an important component of economic and social infrastructure, one of the three breakthrough areas that need priority investment for development ahead of schedule at a fast and sustainable pace to create a foundation for economic and social development, ensuring national defense and security, serving the cause of industrialization and modernization of the country.

2. Fully exploit the advantages of geographical location and natural conditions of the country, especially the potential of the sea, to develop a reasonable transportation system that saves social costs.

3. Develop transportation infrastructure in a coordinated manner, with focus and key points, both taking appropriate steps and making breakthroughs towards modernity, forming a complete network, interconnected between different modes of transport, regions, urban and rural areas nationwide. Emphasize maintenance work, apply advanced technology, improve labor productivity to ensure efficiency and sustainability in the exploitation of existing transportation infrastructure.

4. Develop transportation towards modernity, with quality continuously improving, reasonable costs, safety, minimizing environmental pollution and energy conservation; applying advanced transportation technology, particularly multimodal transport and logistics.

5. Combine new investments with renovation and upgrading, deepening investments to enhance the effectiveness of existing transportation industry facilities, quickly innovate and adopt modern technology, especially in shipbuilding, automobile manufacturing, and locomotive and carriage production for domestic use and export.

6. Develop the international transportation system closely connected with the domestic transportation system to proactively cooperate and integrate regionally and internationally.

7. Quickly develop high-speed, large-volume transportation methods for major cities (initially Hanoi and Ho Chi Minh City); develop urban transportation mainly using public transportation, ensuring modernity, safety, and convenience; develop static traffic systems; control the increase in private vehicles; resolve traffic congestion and ensure urban traffic order and safety.

8. Develop local transportation, connecting local transportation networks with the national transportation network, creating continuity, smoothness, and efficiency.

9. Promote socialization in the investment and development of transportation infrastructure. Mobilize all resources to invest in developing transportation infrastructure. Users of transportation infrastructure have the responsibility to contribute usage fees for maintenance and reinvestment in transportation infrastructure construction.

10. Allocate reasonable land for the development of transportation infrastructure and ensure safe traffic corridors. Land planning for transportation infrastructure must be consistent and closely coordinated, implemented in a synchronized manner among ministries, sectors, and localities.

II. OBJECTIVES FOR THE DEVELOPMENT OF TRANSPORTATION UNTIL 2020 AND WITH A VISION UNTIL 2030

1. Development objectives until 2020

By 2020, the country's transportation system will basically meet the transportation needs of society, ensuring continuous improvement in quality, reasonable costs; controlling and gradually reducing traffic accidents and environmental pollution, overall, forming a reasonable transportation system between different modes of transport, developing in a coordinated manner, gradually moving towards modernization to contribute to the country basically becoming a modern industrialized nation by 2020.

a) On transportation

- Develop harmoniously and reasonably various modes of transport:

+ Road transport mainly handles cargo consolidation, short and medium-distance freight and passenger transport.

+ Rail transport mainly handles long and medium-distance freight, large volumes; long-distance passenger transport, inter-provincial and inter-city passenger transport, and public passenger transport in large cities.

+ Sea transport mainly handles long-distance and coastal freight, especially north-south freight, imported coal for thermal power plants, crude oil for oil refineries. Increase market share of import-export freight to 25-30%. Develop coastal and island passenger transport routes.

+ Inland waterway transport mainly handles large bulk cargo (coal, cement, fertilizers, building materials...) and oversized cargo within the country.

+ Air transport mainly handles long-distance and international passenger transport, and high-value freight. Develop air transport into a safe and convenient mode of transport following an open market approach, closely linked to regional and global air transport markets.

- The proportion of each mode of transport in total passenger and freight volume by 2020: Total passenger volume is 6,240 million person-kilometers, of which road transport accounts for 86.0-90.0%, rail 1.0-2.0%, inland waterways 4.5-7.5%, and air 1.0-1.7%. Total freight volume is 2,090 million tons, of which road transport accounts for 65.0-70.0%, rail 1.0-3.0%, inland waterways 17.0-20.0%, sea 9.0-14.0%, and air 0.1-0.2%.

- Develop transportation means suitable for the type of cargo and passenger groups, ensuring technical standards for safety and the environment.

b) On the development of transportation infrastructure

* North-South Axis

- Prioritize investment to complete the upgrade and expansion of National Highway 1 with a four-lane capacity. Focus on investing in constructing certain sections of expressways on the North-South route at appropriate times, taking into account the overall efficiency of exploiting parallel sections of National Highway 1. Invest in connecting and upgrading the Ho Chi Minh Road and upgrading the section passing through the Central Highlands. Selectively invest in sections with demand along coastal roads connected to sea dikes.

- Concentrate and prioritize upgrading and modernizing the existing North-South railway line. Continue researching feasible options to develop plans for building high-speed railways appropriately.

- Develop the main air network according to the grid model with high operating frequency and good transit services at two centers, Hanoi and Ho Chi Minh City.

* Northern Region Develop transportation infrastructure in the northern region with a focus on the Red River Delta economic zone, concentrating on the following tasks:

- Complete the upgrade and expansion of sections of National Highway 1 within the region with a four-lane capacity. Construct new sections of the North-South expressway, expressways in the two economic corridors and one economic ring between Vietnam and China, central and ring expressways around Hanoi. Upgrade and bring into operation the remaining national highways, connect and upgrade national highways in the northern ring system, complete the investment in the border patrol road system according to approved planning.

- Complete the upgrade and modernization of the North-South railway line sections within the region, bringing existing railway lines into operation. Study the construction of new high-speed railway lines in the two economic corridors and one economic ring between Vietnam and China, lines connecting to seaports, and large economic zones.

- Focus and prioritize synchronous and modern investment in building the international gateway port of Lach Huyen capable of receiving ships with up to 100,000 DWT (8,000 TEUs); continue developing seaports, container terminals, and specialized ports to meet demands during different periods; build passenger ports in the Haiphong and Quang Ninh areas.

- Complete the technical commissioning and ensure 24/24h vessel operation on important inland waterway routes. Upgrade and construct new major ports and cargo berths such as Ninh Phuc, Da Phuc, Viet Tri, Hoa Binh, and Phu Dong container port. Upgrade and construct new passenger ports in Hanoi, Haiphong, and Quang Ninh.

- Focus and prioritize synchronous and modern investment in upgrading Noi Bai International Airport, Cat Bi Airport, making Noi Bai International Airport the international gateway airport of the North. Safely and effectively operate Dien Bien Airport; restore operations at Gia Lam, Na San, and Thua Thien Hue airports to meet socio-economic development requirements. Study the construction of Quang Ninh and Lao Cai airports.

* Central Region

- Central Highlands Develop transportation infrastructure in the Central and Central Highlands regions with a focus on the Central Economic Zone, concentrating on the following tasks:

- Complete the upgrade and expansion of sections of National Highway 1 within the region with a four-lane capacity. Construct sections of the North-South expressway. Upgrade and construct roads in the East-West economic corridor and crossroads connecting coastal provinces with the Central Highlands, linking Vietnamese seaports with neighboring countries like Laos, Thailand, and Cambodia; bring remaining national highways into operation. Construct border roads and the border patrol road system according to approved planning.

- Proceed with the upgrade and modernization to enhance the efficiency of exploitation of sections of the existing North-South railway line. Study the construction of new railway sections: Vung Ang-Cha Lo (Mu Giya), connecting Central Highland provinces, serving aluminum production, and connecting the Central Highlands to seaports.

- Continue constructing, upgrading, and expanding ports: Nghi Son, Cu Lo, Vung Ang, Da Nang, Dung Quat, Qui Nhon to meet demands during different periods. Construct specialized ports to serve thermal power plants and aluminum exports. Choose and construct international passenger ports in Hue, Da Nang, and Nha Trang. Encourage foreign investors to develop international transshipment ports in Van Phong.

- Rectify and upgrade some important river sections; pay attention to increasing the length of managed and exploited rivers.

- Focus on synchronous and modern investment and effective operation of Da Nang International Airport and Cam Ranh International Airport. Continue upgrading Chu Lai Airport to become an international cargo transshipment airport. Upgrade Vinh, Phu Bai, Phu Cat, Tuy Hoa, Pleiku, Buon Ma Thuot airports to meet demands during different periods. Study developing Lien Khuong Airport into an international airport.

* Southern Region

Develop transportation infrastructure in the southern region with a focus on the Southern Economic Zone, concentrating on the following tasks:

- Complete the upgrade and expansion of sections of National Highway 1 in the southern region with a four-lane capacity. Construct sections of the North-South expressway, expressways connecting Ho Chi Minh City with gateways and important traffic hubs, and ring roads around Ho Chi Minh City; connect the western border route; complete the upgrade and bring remaining national highways into correct technical operation.

- Proceed with the upgrade and modernization to enhance the efficiency of exploitation of sections of the existing North-South railway line. Study new 1,435mm gauge railway lines connecting Ho Chi Minh City with Vung Tau and Ho Chi Minh City with Can Tho; study constructing Di An-Loc Ninh railway to connect with the Trans-Asia Railway.

- Concentrate and prioritize investment in building the international gateway port complex of Cai Mep-Thi Vai in a modern and integrated manner to accommodate ships with a deadweight tonnage of over 100,000 DWT (8,000 TEUs). Continue to invest in developing and effectively operating ports and wharves within the region according to approved planning. Construct a new ship channel into the Hau River via the Quan Chanh Bo Canal for ships with a deadweight tonnage of 10,000 DWT fully loaded (ships with a deadweight tonnage of 20,000 DWT partially loaded) in conjunction with expanding and upgrading the Can Tho-Cai Cui port cluster to become a key port cluster in the Mekong Delta region.

- Complete technical commissioning and ensure ship operation 24/24 hours on major inland waterway routes from Ho Chi Minh City to provinces in the Mekong Delta, including the Mekong and Hau rivers. Construct and upgrade domestic cargo and passenger ports. Increase inland waterway transport capacity to 70÷75% of the total transport volume in the Mekong Delta region.

- Focus on upgrading and modernizing the international airport of Tan Son Nhat. Continue to upgrade airports in Ca Mau, Rach Gia, Con Dao to meet demand; ensure effective operation of the international airport in Can Tho and Phu Quoc. Study the construction of an airport in Vung Tau. Encourage public-private partnerships to accelerate the construction of the international air cargo hub at Long Thanh Airport.

c) On urban transportation development

 - Develop a reasonable urban transportation infrastructure system and public transport; strive for land allocation for urban transportation from 16÷26%. For large cities, develop a strong bus system and quickly invest in constructing large-scale public transport routes such as elevated railways and metro trains to achieve a public passenger transport share of 25÷30%. Control the development of motorcycles and private cars, especially in the capital city of Hanoi and Ho Chi Minh City.

- Focus on upgrading, expanding, and constructing new central traffic axes,立体的交叉路口、城市绕行路线和城市环路。加快实施一些城市轨道交通项目和首都北京及广州市区内外铁路项目的进度。

- Scientifically organize urban traffic management, using advanced technology and equipment such as signals, control centers, camera systems, and intelligent transportation systems (ITS). Upgrade the two traffic control centers in the capital city of Hanoi and Ho Chi Minh City, and invest in similar centers in other cities when needed.

d) On rural transportation development

 - Maintain, consolidate, and upgrade the existing transportation network according to the technical standards for rural roads, meeting the requirements for industrialization and modernization of agriculture and rural areas. The proportion of hard-surfaced roads, asphalt, or cement roads should reach 100% for district roads, 70% for commune roads, and 50% for village roads.

- Complete the construction of new roads to the centers of communes and clusters of communes without roads, forest farms, and industrial points. Gradually construct underpasses and overpasses at intersections between expressways, national highways, and local roads to ensure traffic safety. In the Mekong Delta region, pay special attention to the development of inland waterway transportation.

- Study the use of local materials, select appropriate road surface structures suitable for the conditions and climate of each region, focusing on the use of cement in the construction and upgrading of rural roads.

- Reasonably utilize traditional transportation means, develop small mechanized vehicles suitable for the conditions of rural transportation infrastructure and the living standards of the majority of residents.

đ) On the development of the transportation industry

 - Shipbuilding industry: focus on products with market demand, competitive advantages to meet domestic needs and have export products. Build new ocean-going vessels mainly in the group with a deadweight tonnage of up to 100,000 DWT; repair ocean-going vessels mainly in the group with a deadweight tonnage of up to 150,000 DWT.

- Automotive and motorcycle manufacturing industry: concentrate on assembling and manufacturing passenger cars, bus vehicles, heavy trucks, agricultural utility vehicles, and certain types of construction motorcycles to meet domestic needs and have export products. - Railway industry: focus on products such as new passenger carriages and freight cars that are modern, well-equipped, and diverse in type for domestic use and export. Manufacture some spare parts and components and assemble modern locomotives.

 - Aviation industry: strengthen aircraft maintenance and repair capabilities, ensuring self-reliance in providing maintenance services for domestic airlines and gradually expanding services to foreign airlines.

2. Vision until 2030

 By 2030, basically complete the national transportation network, ensuring rational connections and development among different modes of transport. Transport quality and service levels will be improved, ensuring rapidity, safety, and convenience.

Basically complete the construction of expressways; implement the construction of some sections of the high-speed railway line from North to South. Vietnam's road and railway systems will be synchronized in technical standards, conveniently connecting with ASEAN's road system, the expanded Mekong Subregion, and the Trans-Asian Railway.

Port systems will meet the demand for import and export goods and domestic trade. International gateway ports in key economic regions will be closely linked with distribution center systems and transportation networks to form a modern and efficient logistics infrastructure network on par with advanced countries in the region.

Complete technical commissioning and ensure ship operation 24/24 hours on major inland waterway routes. Mechanize cargo handling and operate effectively at inland waterway ports and wharfs. Vigorously develop inland waterway routes to islands.

To basically complete the modern air transport network throughout the country, with international airports Noi Bai and Long Thanh playing roles and having scales on par with major international airports in the region. A modern air traffic management system ensuring the coverage of communication, navigation, and surveillance equipment according to the mission requirements across the entire Vietnamese FIR area in accordance with ICAO's air navigation plan.

Develop urban transportation towards civilization and modernity. Gradually build large-scale passenger transport routes in Class I cities. Continue to develop urban railway networks in Hanoi and Ho Chi Minh City to ensure that the public passenger transport ratio reaches 40 ÷ 45%.

III. MAJOR SOLUTIONS AND POLICIES

1. Solutions and policies to create capital for developing transportation infrastructure

- Increase investment in transportation infrastructure through state budget and government bonds annually to reach 3.5 ÷ 4.5% of GDP, prioritizing key projects. Issue government-guaranteed bonds to invest in urgent construction projects.

- Mobilize all resources, continue to improve mechanisms and policies to attract investment from all economic sectors, including foreign investors, to develop transportation infrastructure under various forms such as BOT, BT, BTO, PPP. Amend and supplement financial support policies, taxes, prices, fees, royalties, concessions... to enhance the commercial nature of transportation projects and the responsibility of users.

- Attract and effectively utilize ODA funds. Vigorously promote the provision of ODA by sponsors to develop transportation infrastructure, especially large-scale projects with wide-ranging impacts and breakthroughs. Study appropriate steps to leverage the effectiveness of the PPP model between foreign investors and ODA funding from countries and international organizations.

- Quickly implement the Road Maintenance Fund. Study the establishment of an Infrastructure Development Investment Fund.

2. Solutions to improve the efficiency of investment capital and to enhance the connectivity and synchronization of the transportation infrastructure system

- Focus investments on key areas, avoiding dispersion; make significant changes in the allocation of investment capital among different transportation sectors.

- Concentrate capital on projects with wide-ranging impacts, connecting different modes of transport, within the same system, in key economic zones, and at international gateways.

3. Solutions and policies for transportation development

- Study restructuring the entire transportation sector to develop harmonious and reasonable transportation modes, ensuring economic and social efficiency, traffic safety, environmental protection, and sustainable development.

- Encourage all economic sectors to participate in transportation business and supporting services. Establish some state-owned transportation enterprises to serve large demand routes such as North-South, urban public passenger transport, and transportation serving remote, difficult areas and other urgent tasks when necessary.

- Support transportation enterprises engaged in public passenger transport and transportation serving remote, difficult, and particularly hard-to-reach areas with appropriate forms. Encourage the use of domestically produced and assembled means of production.

- Develop fare, fee, and royalty systems as macro-regulatory tools guiding the rational development of transportation modes.

- Diversify transportation types and supporting services, ensuring quality, speed, safety, convenience, and cost savings. Strengthen multimodal transportation and logistics services in cargo transportation.

- Enhance management and regular inspection of vehicle quality and transportation service quality, especially for passenger transport. Develop organizations and associations protecting customer rights.

4. Solutions and policies for the development of the transportation industry

- Encourage and create all conditions for transportation industry enterprises to expand joint ventures and collaborations both domestically and internationally to raise capital, transfer technology, exchange management experiences, and implement localization programs. Focus on producing competitive products.

- Implement policies to facilitate enterprises' access to and application of new technologies and equipment.

5. Solutions and policies for ensuring traffic safety

- Quickly implement the National Strategy for Ensuring Traffic Order and Safety on Roads until 2020, with a vision to 2030.

- Accelerate investment in upgrading and synchronizing transportation infrastructure systems, ensuring safe corridors, addressing black spots along routes... to curb traffic accidents and strive to reduce annual fatalities due to traffic accidents.

- Improve the legal system, strengthen traffic safety management organizations from central to local levels aiming to ensure traffic order and safety sustainably; enhance the effectiveness of propaganda, dissemination, education combined with strengthened enforcement of traffic laws.

- Improve the quality of training, testing, and management of motor vehicle operators; the quality of mechanical vehicle inspections.

- Strengthen rescue and emergency response operations to minimize losses caused by traffic accidents;

6. Solutions and policies for environmental protection and sustainable development in transportation

- Gradually control, prevent, and limit the increase in environmental pollution caused by transportation activities.

- Enhance energy efficiency in transportation based on organizing rational transportation operations, leveraging waterway and rail transport advantages; quickly develop public transportation in cities, apply multimodal transportation.

- Strengthen the capacity to adapt to climate change and rising sea levels in the transportation infrastructure system.

- Promote the application of energy-efficient technologies and equipment; clean fuels, renewable energy, and alternative energy forms in transportation activities.

7. Solutions and policies for international integration and competition

- Develop a comprehensive transportation infrastructure and transport equipment, loading and unloading devices that meet the technical standards of advanced countries in the region and worldwide. Improve service quality standards to ensure international competitiveness.

- Continue to amend and supplement the legal system, institutional framework, and policies to align with the regulations of the World Trade Organization and other international organizations of which Vietnam is a member.

8. Solutions and policies for organizational management reform and restructuring state-owned enterprises in the transportation sector.

- Reorganize management units according to functional models, clearly distinguishing the state administrative management functions of state agencies from business production management of enterprises.

- Accelerate the restructuring process of state-owned enterprises in the transportation industry to focus resources on key operational areas and main products, enhancing competitive strength. In the short term, focus on Groups and Corporations.

- Reform administrative management in the transportation sector through the application of information technology and international standards (ISO).

9. Solutions and policies for applying new science and technology.

- Establish and improve standards, specifications, procedures, norms, and economic and technical quotas in advisory, management, construction, maintenance, and other fields within the transportation sector. Encourage the application of new technologies and materials.

- Modernize transport vehicles and loading and unloading equipment; apply advanced transport technologies, particularly multimodal transport and logistics services. Apply information technology in the management, operation, and exploitation of the transportation system.

- Implement a new information, navigation, surveillance, and air traffic management system consistent with the plan and transition roadmap in the Asia-Pacific region, adopting a direct approach to high-tech satellite and digital technology.

- Enhance the capacity of research institutes and testing centers in the transportation sector...

10. Solutions and policies for human resource development.

- Expand training forms and retraining; socialize training activities to improve the qualifications and capabilities of management cadres, civil servants, employees, and workers; implement open recruitment through examinations and probationary periods.

- Concentrate investment to enhance the capacity and equipment of training institutions, especially pilot training, officer training, and seafarer training, to raise the level of human resources. Strengthen coordination and integration between companies using human resources and training institutions to ensure practical needs are met and trained personnel are effectively utilized.

- Implement wage policies and preferential benefits for workers in special working conditions in the transportation sector, particularly maintenance work for transportation infrastructure in remote areas, arduous and dangerous labor...

Article 2. Implementation

1. The Ministry of Transport shall take the lead and coordinate with relevant ministries, sectors, provincial people's committees under the central government to organize the implementation of the "Transport Development Strategy until 2020 and Vision until 2030"; regularly update, propose, and adjust it to meet national development requirements.

2. Ministries, sectors, provincial people's committees under the central government within their respective functions, tasks, and authorities shall be responsible for coordinating with the Ministry of Transport to implement the tasks and goals of the Transport Development Strategy, ensuring consistency and synchronization with the implementation of the economic and social development plans of the sector and locality.

Article 3. This Decision takes effect from the date of signature and replaces Decision No. 35/2009/QĐ-TTg dated March 3, 2009 approving the Transport Development Strategy until 2020 and orientation until 2030.

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./.