Quyết định 1436/QD-TTg

DECISION

APPROVING THE ADJUSTED MASTER PLAN ON DEVELOPMENT OF VIETNAM'S RAILWAY TRANSPORTATION UP TO 2020, WITH A VISION TOWARD 2030

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 14, 2005 Railway Law;
At the proposal of the Minister of Transport,

DECIDES:

Article 1. To approve the adjusted master plan on development of Vietnam's railway transportation up to 2020, with a vision toward 2030, with the following principal contents:

I. Development viewpoints

1. The master plan on development of Vietnam's railway transportation must be in line with the Strategy for transportation development up to 2020, with a vision toward 2030; and the Strategy for development of Vietnam's railway transportation up to 2020, with a vision toward 2050: and closely interrelated with development master plans of other transportation sectors and relevant master plans.

2. To prioritize intensive investment in railway infrastructure to rapidly, synchronously, rationally and steadily develop them toward modernity ahead of other railway facilities to make the railway sector a driving force for the national socio-economic development. To develop the outbound railway network linked with seaports and bordering countries, thereby promoting international integration. To rapidly develop the urban railway network to play the key role in mass transit in major cities, first of all Hanoi capital and Ho Chi Minh City.

3. To develop railway transportation in the direction of modernity, high quality, reasonable freight, high velocity, safety, energy conservation, environmental protection and less social costs. To link railway stations with big cargo distribution centers, inland cargo depots (ICD) and other modes of transportation. To enable the railway sector to provide long-distance and high-volume transportation and urban mass transit services, attaching importance to inner city and suburban passenger transport services to meet socio-economic development needs.

4. To concentrate state resources on and make the best use of foreign development assistance sources for the railway sector development. To promote and mobilize to the utmost resources of domestic and foreign organizations and individuals for investment in development of railway infrastructure, transportation services and other support services in order to quickly develop the railway network, raise the competitiveness of railway transportation services and attract passengers and cargo owners to railway transportation modes. To attach importance to the maintenance of existing and post-construction infrastructure facilities in order to assure their efficient, smooth, orderly and safe operation and sustainable development.

5. To step up the upgrading of existing railways up to technical regulations and ensure their efficient operation. To step by step unify the standard railway gauge of 1.435 mm in the whole network and gradually convert dicsel locomotives into electric ones.

6. To set aside adequate land for railway development and assure railway traffic safety corridors and railway work protection scopes under the Railway Law. To work out plans on electric power demand to meet railway development needs.

7. To promote the development of human resources and scientific and technological potential and intensify international cooperation. To develop railway industry to well meet domestic needs and turn out products for export.

II. Development objectives

1. To develop railway transportation with synchronous infrastructure, means of transport and transportation services and railway industry at an advanced and modern level equal to developed regional countries, contributing to promoting the growth of other economic sectors and achieving the objective that Vietnam will basically become an industrialized country by 2020.

2. To form a complete railway network linking socio-economic centers and key economic regions nationwide and combined with other modes of transportation. The railway network will join in the mass transit system in urban centers and big cities and provide smooth, quick, safe and competitive inner city - suburban, intra-regional and long-distance railway transportation services to meet domestic needs and facilitate international exchange and maintenance of defense and security.

3. To formulate and promulgate a mechanism to encourage all economic sectors to invest and deal in railway transportation, and to raise non-state funds for investment in infrastructure construction which will account for at least 10% (by 2020) and 20% (by 2030) of the total investment capital.

4. To assure sufficient human resources, intensify investment in physical and technical foundations, renew training programs and diversify training forms. To further socialize the training of railway staff in order to ensure sufficient high-quality human resources to meet development requirements of a modern railway sector.

III. Master plan on development of railway transportation up to 2020 with a vision toward 2030

1. Railway transportation:

a/ Specific objectives:

- By 2020: Railway transportation will satisfy at least 13% and 14% of demands for passenger transportation and cargo transportation, respectively, in the total transportation volume of the entire transport sector. Urban railway passenger transportation will satisfy at least 20% of the mass transit demand in Hanoi capital and Ho Chi Minh City.

- In the 2020-2030 period: Railway transportation will satisfy 20% of demands for passenger and cargo transportation, and urban railway passenger transportation will satisfy 25% of the mass transit demand in big cities.

b/ Development planning:

- Passenger transportation: To concentrate on developing transportation services for distances of between 300 and 500 km on major transport axes, especially the North-South axis and East-West axis, and urban, inner city-suburban and inter-provincial railway transportation services on the basis of exploiting the existing railway system and newly built medium-distance railways and railways in areas with high demands.

- Cargo transportation: To promote the rapid development of services of heavy and large-volume cargo transportation from mines, seaports, ICDs, factories and large economic zones, in order to ease the load on road transportation and reduce traffic accidents. To apply modern transport technologies so as to meet increasingly high demands of customers.

- To raise the competitiveness of transportation services by accelerating the equitization of state-run railway transportation enterprises and the socialization of railway transportation in order to raise service quality and reduce fares and freight; to attract non-state economic sectors to participate in developing railway transportation and support services through the creation of a competitive market; and to enhance the state management of railway transportation;

- To expand linkage in international and regional railway transportation and with bordering countries on the basis of the railway network at present and in the future.

2. Infrastructure

a/ Specific objectives:

- By 2020: To complete the renovation and upgrading of the existing railway network up to grade-I national railway standards, and the connection of railways to international seaports, factories, economic zones, mines and big tourist centers; to strive for the completion of construction of new Lao Cai - Hanoi - Hai Phong and Dong Dang - Hanoi railways; to rapidly develop iron-wheel transportation in urban centers, first of all Hanoi capital and Ho Chi Minh City; to prioritize the construction of a number of north-south express railway sections; to step by step renovate and expand existing single-track railway sections into electrified dual-track ones, and expand urban railways to meet the need for inner city-suburban transportation or transportation within big urban areas;

- By 2030: To complete urban railway networks in Hanoi capital and Ho Chi Minh City, and commence the construction of urban railways in some other big cities; to basically complete the North-South express railway network; to start construction of the Central Highlands railway network, railways linking the northern deltas coastal provinces and railways to the Mekong River delta provinces.

b/ Development planning:

- By 2020, to complete the following:

+ Renovation and upgrading of existing railways.

+ Construction of a number of sections of the North-South express railway. Yen Vien - Pha Lai - Ha Long - Cai Lan. Bien Hoa - Vung Tau and Lao Cai - Hanoi - Hai Phong. Dong Dang - Hanoi railways. Dak Nong - Binh Thuan raiway to serve bauxite exploitation. Di An - Loc Ninh and Vung Aug - Mu Gia railways; restoration of Thap Cham - Da Lat railway, study and construction of Dong Ha - Lao Bao railway: construction of railways linking seaports, industrial parks, economic zones and new mines, such as Hai Phong international gateway port, Van Phong international transshipment port. Cai Mep – Thi Vai port. Thach Khe iron mine, and bauxite mines in the Central Highlands: key railway networks in Hanoi (the eastern belt). Ho Chi Minh City (the western belt). Hai Phong, Da Nang. Dieu Tri; construction of a number of trunk urban railways and inter-regional railways in Hanoi capital and Ho Chi Minh City region.

- By 2030, to complete the construction of:

+ The Central Highlands railway network consisting of the axial railway of Da Nang - Kon Turn - Dak Lak - Buon Ma Thuot - Chon Thanh

- Ho Chi Minh City and subsidiary railways of Buon Ma Thuot - Tuy Hoa and Dak Nong - Binh Thuan;

+ Remaining sections of the North-South express railway network;

+ Urban railway networks in Hanoi capital and Ho Chi Minh City:

+ Coastal railways of Nam Dinh - Thai Binh

- Hai Phong - Quang Ninh and Ha Long - Mong Cai;

+ Railways of Lang Son - Quang Ninh (Mui Chua). Nam Dinh - Thinh Long and My Ly -Tan Ky.

3. Railway industry:

a/ Specific objectives:

- By 2020: To domestically manufacture railway means, supplies, equipment and spare parts to basically meet the needs for maintenance, renovation, repair and upgrading of the existing railway network:

- By 2030: To gradually meet the needs for railway means, supplies, equipment and spare parts of projects on building of urban railways and new railways; to form a modern railway industry.

b/ Development planning:

- By 2020:

+ Locomotives: The orientation is to develop assembly into manufacture of diesel locomotives of a capacity of 2,000-2,500 CV for old railways and electric locomotives of a capacity of 5,000 kW or more for new electrified railways. At the same time, to develop the network of self-propelling trains (electric multiple units - EMU) to transport inner city and suburban passengers. To strive to manufacture between 1,100 - 1,200 locomotives.

+ Cars and wagons: To concentrate on developing the industry of building 50,000 and 53,000 cars and wagons of all kinds for domestic consumption and export to regional countries;

+ Railway spare parts and supplies (rails, ties, accessories, switches, locomotive electricity supply, information and signaling systems): To domestically manufacture these parts and supplies to meet needs for maintenance of existing railways and for export.

- By 2030:

To develop the industry of manufacturing railway spare parts and supplies to meet the needs for building new railways in the country and for export.

4. Traffic safety:

a/ Specific objectives:

To step by step curb and reduce railway traffic accidents in terms of number and casualties.

b/ Development planning:

- By 2020:

+ Infrastructure: To eliminate all railway-intersecting roads and build railway-intersecting roads with protection facilities, feeder roads, barricades, barriers for safety corridor protection, flyovers at crossings between railways and national highways and some provincial roads. To establish a safe corridor for trains running at a maximum speed of 120 km/h along the whole railway network:

+ To standardize and develop human resources: To perfect legal provisions on railway and strengthen the organizational structure of the apparatus for railway traffic safety management; to enhance law propaganda, education and dissemination; to raise the quality of training of train drivers and intensify the inspection and examination of means of railway transport:

+ Salvage and rescue: To finalize plans on investment in salvage and rescue equipment and tools in order to minimize casualties and asset damage caused by traffic accidents.

- By 2030:

+ To complete building the barricade system in the whole railway network of Vietnam;

+ To complete building railway-road crossing intersections under the Railway Law.

5. Capital, land and electric power needs:

a/ By 2020:

- The whole sector will need a total VND 1,355,101 billion.

+ Infrastructure: VND 1.142,557 billion.

* Express railways: VND 505.984 billion.

* Other railways: VND 636.573 billion.

Of which state budget capital will account for 90% (VND 983.619 billion), and non-state budget capital, for 10%, (VND 109.290 billion).

+ Locomotives, cars and wagons: VND 199,726 billion;

+ Industrial establishments: VND 8.645 billion:

+ Traffic safety works: VND 4.173 billion.

- Needed land areas: around 12,685 ha:

- Needed electric power output: around 4.972 million kWh/year.

b/ By 2030:

- Total capital needed for the whole sector: VND 1,054.979 billion.

+ Infrastructure: VND 884.326 billion.

* Express railways: VND 716.694 billion.

* Other railways: VND 167.632 billion.

Of which state budget capital will account for 80% (VND 707,460 billion), and non-state budget capital, for 20% (VND 176.866 billion).

+ Locomotives, cars and wagons: VND 170,653 billion;

- Needed land areas: around 7,650 ha;

- Needed electric power output: around 7,900 million kWh/year.

6. Investment capital sources: ODA loans, government bonds, state budget, investments by enterprises and individuals.

(The list, projected total investment capital, investment phases of projects are provided in the enclosed Appendix).

IV. Major solutions and policies

1. Capital: To vigorously concentrate state resources and make the best use of foreign development assistance resources, and adopt mechanisms and incentive policies and special mechanisms to mobilize to the utmost all non-slate budget resources from domestic and foreign organizations and individuals for investment in development of railway infrastructure, especially urban railways, inner city-suburban railways and such arterial railways as the North-South railway and railways under the Program of two corridors and one economic belt of Vietnam and China; to set up the fund for maintenance of and investment in railway infrastructure development;

2. Transportation: To raise the competitiveness of railway transportation services, create an environment for healthy and fair competition among transportation businesses of all economic sectors based on equitization of state transportation enterprises, accelerate the socialization of railway transportation, raise service quality, and reduce freight;

3. Industry: To encourage the application of modern technologies to railway industrial establishments and the export of railway industrial products;

4. Urban railway transportation: To formulate a number of special policies to quickly attract capital for investment in the urban iron-wheel transport system, first of all in Hanoi capital and Ho Chi Minh City;

5. Traffic safety and environmental protection: To assure the strict compliance with regulations on traffic safety corridors, railway-crossing roads, planning on railway-road crossing intersections, and environmental protection;

6. Science and technology: To perfect the system of railway regulations and standards. To encourage the application of new and modern technologies and materials to research, training, transport business, infrastructure construction, industry and service provision. To establish organizations specialized in research and application of railway science and technologies, and centers for railway experiments and tests:

7. Administrative management and reform: To improve and perfect legal provisions on railways. To organize railway enterprises under the Enterprise Law. To adopt appropriate policies and mechanisms to encourage economic sectors to conduct business in railway infrastructure, transportation, industry and services.

8. Human resources:

- To concentrate on training and retraining managerial and scientific cadres and skilled workers to improve their qualifications and skills to meet development requirements of the railway sector in each period. To quickly organize the training of human resources for application of electrified, express and urban railway technologies;

- To diversify training forms: short-term, long-term, domestic and overseas training, academic training and self-training;

- To adopt wage and preferential treatment policies for laborers working in special conditions of the railway sector, especially those working in remote, deep-lying and difficulty-hit areas.

9. International cooperation: To take the initiative in entering into international cooperation with countries with modem railway systems in order to absorb their scientific and technological advances and railway development experience. To further revise the system of laws, institutions and policies in line with regulations of the World Trade Organization and other international cooperation organizations of which Vietnam is a member.

10. The State shall adopt policies to support loss-making railway services which need to be maintained to serve socio-economic development, defense and security.

Article 2. Organization of implementation

1. To assign the Ministry of Transport to assume the prime responsibility for, and coordinate with concerned ministries, branches and provincial-level People's Committees in, organizing the implementation of the adjusted master plan on development of Vietnam's railway transportation up to 2020, with a vision toward 2030: and to periodically update and propose adjustments to this master plan to meet the country's development requirements.

2. Ministries, branches and provincial-level People's Committees shall, within the ambit of their functions, tasks and powers, coordinate with the Ministry of Transport in performing the tasks and achieving the objectives of the adjusted master plan, ensuring its consistency and conformity with socio-economic development plans of branches and localities.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies and government-attached agencies and chairpersons of provincial-level People's Committees shall implement this Decision.

APPENDIX

LIST OF PROJECTS PLANNED FOR DEVELOPMENT OF ORDINARY, EXPRESS AND URBAN RAILWAY INFRASTRUCTURE UP TO 2020. WITH A VISION TOWARD 2030

(To the Prime Minister's Decision No. 1436/QD-TTg of September 10, 2009)