Quyết định 1834/QD-BGTVT

DECISION

APPROVING THE STRATEGY FOR DEVELOPMENT OF VIETNAM AIR TRAFFIC MANAGEMENT CORPORATION BY 2020 AND ORIENTATION TOWARDS 2030

THE MINISTER OF TRANSPORT

Pursuant to the Government's Decree No. 107/2012/NĐ-CP dated December 20th 2012, defining the functions, tasks, entitlements and organizational structure of the Ministry of Transport;

Pursuant to the Prime Minister’s Decision No. 21/QĐ-TTg dated January 08, 2009 approving the Master plan for air traffic development by 2020 and the orientation towards 2030;

Pursuant to Decision No. 2339/QĐ-BGTVT dated October 19, 2011 of the Minister of Transport approving the Master plan for development of Vietnam’s communications, navigation, surveillance and air traffic management systems (CNS/ATM) by 2020 and the orientation towards 2030;

Pursuant to Decision No. 573/QĐ-BGTVT dated March 11, 2013 approving the Charter of Vietnam Air Traffic Management Corporation (VATM);

At the request of VATM in Document No. 144/TTr-HĐTV dated March 27, 2014;

At the request of Director of Enterprise Management Department,

DECIDES:

Article 1. Approving the Strategy for development of VATM by 2020 and orientation towards 2030 with the following contents:

I. VIEWPOINTS

1. Establish foundations for VATM’s sustainable development by 2030 by: (1) investment in infrastructure and modern technologies; (2) high-quality training; (3) Development of a management model conformable with Vietnam’s law and suitable for international integration.

2. Provision of air navigation services in flight information regions (FIR) under Vietnam’s control and flights from and to domestic airports are considered core operations. Be prepared for opportunities of investment, development of aviation products and services that are suitable for VATM’s capacity and society’s needs.

II. OBJECTIVES

1. Overall objectives

By 2030, VATM is expected to become one of the best air navigation service providers in ASEAN region in terms of both capacity and service quality; has a safe and reliable management system; applies modern technologies and advanced air traffic management solutions; improve its employees’ income and better contribute to state budget”.

2. Specific objectives

a) Develop VATM’s capacity to improve service quality, ensure safety of 100% of the flights in its responsible area. By 2020, VATM is expected to be able to handle twice the air traffic in all Vietnam’s FIR compared to 2010 (800,000 – 1,000,000 flights). By 2020, VATM is expected to achieve the following targets:

- Total revenue: 5,112 billion dongs, increased by 7% - 10% per year.

- Total income: 2,526 billion dongs, increased by 7% - 10% per year;

- Total expense: 2,111 billion dongs, increased by 5% - 7% per year;

- Contribution to state budget: 2,675 billion dongs, increased by 7% - 10% per year (including 2,461 billion dongs from passing flights, which make up 92% of total contribution to state budget);

- Average income of employees is expected to increase by 6% - 8% per year.

By 2030, VATM is expected to be able to handle three times the flights in Vietnam’s FIR (1,200,000 – 1,500,000 flights), ensure service quality according to international standards recognized by Vietnam’s authorities and ICAO; gradually approach low level flight control, improve flight control capacity in Vietnam’s territorial waters and island.

b) Develop VATM into a large scale enterprise whose charter capital is expected to exceed 3,000 billion dongs by 2020. The parent company plays its roles in making financial investment, holding technological secrets and controls the market in the conglomerate with 2 – 3 subsidiaries that are joint-stock companies and/or limited liability companies.

Optimize the business administration model, the subsidiaries of which are granted appropriate autonomy in business operation; the effectiveness of air navigation services provided and financial efficiency are criteria for evaluating their operation. Achievement of objectives is top priority. Convert ATTECH into a multi-owner company whose core operations include: surveillance, navigation and communications services; calibration of navigation and surveillance devices. ATTECH is expected to become one of the top aviation companies in Vietnam whose capitalized value is expected to reach 350 – 500 billion dongs.

c) Finish investing in flight control infrastructure under the Master plan for development of Vietnam’s communications, navigation, surveillance and air traffic management systems (CNS/ATM) by 2020 and the orientation towards 2030. Implement measures for flight control in Decision No. 2985/QĐ-BGTVT dated September 30, 2013 of the Minister of Transport.

d) By 2020, improve and develop the safety management system (SMS) for air traffic management in accordance with regulations of Vietnam’s authorities and equivalent to safety management systems of developed ASEAN countries. By 2030, the SMS of VATM is expected to meet the requirements of the international aviation community and meet the standards of developed countries in the Asia – Pacific region.

dd) Develop high-quality human resources, including: qualified managers, experts capable of exploiting advanced air navigation technologies; aviation employees satisfying standards of the State and ICAO and dedicated to VATM.

e) Keep enhancing manufacture of aviation products according to international standards to replace imports and aim to exportation. By 2020, revenue from aviation products and services are expected to reach 100 – 120 billion dongs.

III. SOLUTIONS

1. Overall solutions

a) Focus all resources of VATM on improving air traffic control capacity, improving air navigation service quality to ensure safety and effectiveness of all the flights in the airspace of responsibility. These are considered core operations of VATM.

b) Seek international integration in terms of air traffic control technologies; apply new CNS/ATM technologies according to Vietnam’s commitment to ICAO and international aviation community towards access to high technologies, satellite and digital technologies. Improve international relations in air traffic control to keep up with advanced air navigation service providers in the world and strengthen its position as a top air navigation service provider in ASEAN.

c) Develop and apply a business administration model which is modern and transparent. Improve division of management, capacity of the heads; enhance inspection and supervision. Simplify the management apparatus. Adjust labor structure; increase the ratio of employees who directly participate in the air navigation service chain; improve training quality.

d) Improve effectiveness of every business operation. Focus on improving management capacity, air navigation service quality and financial efficiency of business operation.

dd) Connect the business and development plans of VATM with policies on development of human resources, including improvement of working conditions, income, living standards of employees, and corporate culture as the foundation for cooperation in achieving VATM’s objectives.

2. Specific solutions

a) Air traffic control service management:

Gradually improve the clearance capacity of the airspace as well as optimize airspace structure and airway structure to meet practical needs according to specific roadmaps. To be specific:

- Airspace organization:

+ Consider adjusting terminal control areas (AMA), sub-areas of both FIR towards increasing capacity, decreasing workload of air traffic controllers in a manner that is appropriate for new air traffic control technology and performance-based navigation (PBN). By 2020, these tasks shall be performed at major international airports and along the East - West and North – South routes;

+ Optimize responsibility areas of air traffic control service provider to meet the increasing flight density;

+ Develop a modern system of airways that is conformable with the plan for airport network development;

+ Keep minimizing separation; consider expanding the scope of management of low level flights, in territorial seas and islands;

+ Combine airspace management (ASM) with practice of ICAO’s manual on collaborative decision-making; keep up with the synchronization process in the Asia-Pacific region.

- By 2020, step by step develop and apply PBN at every international airport and some important local airports. From 2020 to 2030, apply PBN at the other airports.

- Air traffic control:

+ Organize air traffic flow management (ATFM) to meet the increasing demand at airports, airfields and FIRs. By 2015, joint other countries in the region in applying ATFM to certain international routes with high density in the East Sea area. By 2020, make investment to apply ATFM to all Vietnam’s FIRs;

+ Apply new air traffic control technologies to optimize flight time in the airspace of the airport and above the air operations area;

+ Review the corridors, arrival and departure modes towards separation at the airports and airfields to reduce flight time, improve safety and decrease emission.

b) Technologies

- By 2020:

+ Reinvest and invest in radar stations, Automatic dependent surveillance – broadcast (ADS–B), VHF Air-ground communications, VHF omnidirectional range/distance measuring equipment (VOR/DME); ensure the coverage of communications, navigation and surveillance device in the entire FIR of Vietnam with high accuracy and reliability; apply satellite technologies and local connection. Invest in suitable devices and technologies to provide air traffic control services, aeronautical information, meteorology, search and rescue according to international standards and objectives set by the State;

+ Invest in maintenance of CNS devices; consider maintaining or discarding traditional technologies (VHF communications, NDB navigation, etc.);

+ Apply ATS inter-facility data communications (AIDC) among Area Control Center (ACC) of Hanoi, ACC of Ho Chi Minh City, Approach Control Office (ACP) of Da Nang; between ACC Hanoi, ACC Ho Chi Minh City and ACCs of neighboring countries;

+ Replace the automatic message switching system (AMMS) with the aeronautical message handling system (AMHS) nationwide

+ Apply ADS-B;

+ Apply PBN.

- By 2030: Keep investing and reinvesting in completion, modernity, reliability of air traffic control equipment.

c) Aeronautical information services:

Convert from aeronautical information services (AIS) to aeronautical information management (AIM).

d) Meteorology services:

- Develop a meteorology service provision system to assist air traffic control services; ensure exchange of accurate and prompt meteorology information between air traffic controllers and airplanes.

- By 2020, step by step cooperate with relevant authorities (Airports Corporation of Vietnam, national weather monitoring and forecasting centers) in connecting VATM’s meteorology information collection and processing system with their systems to diversify meteorology services, improve service quality and preparedness.

dd) Search and rescue:

- Complete the organization; invest in equipment of VATM’s search and rescue units nationwide.

- Combine equipment of VATM’s Search and Rescue Center with National Aviation Emergency Center (“Trung tâm khẩn nguy hàng không quốc gia”) to optimize its operation and give consistent directions in case of emergencies.

- Enhance training in search and rescue; focus on practical skills; regularly hold search and rescue drills (up to 2 times per year).

- By 2020: connect search and rescue services with adjacent FIRs tom increase search and rescue capacity in international waters and along boundaries of the FIRs.

e) Safety management of air navigation services:

- By 2020:

+ Carry out safety management according to international standards: carry out safety management at every air traffic control facilities and management level of VATM; ensure adequacy of qualified safety management personnel; adhere to international safety management requirements;

+ Develop, update and complete the safety indicators; ensure that VATM’s safety indicators are equivalent to those of developed ASEAN countries;

+ Upgrade the SMS towards establishing a safety council and safety surveillance agency that re independent from air navigation service providers to improve effectiveness of the SMS.

+ Cooperate with Civil Aviation Authority of Vietnam in developing and completing its safety surveillance system;

+ By 2020, connect VATM’s SMS with those of other aviation units and Civil Aviation Authority of Vietnam to increase exchange of data, synchronization of safety indicators and standards.

- After 2020 and by 2030: Step by step connect VATM’s SMS with those of air navigation service providers in the region.

g) Development of test flight and calibration services;

Stabilize the squadron to meet the needs for test flight and calibration of navigation and surveillance devices, test flight for evaluation of PBN; expand services to neighboring countries. By 2015, ATTECH shall consider buying or contributing shares to obtain earn the right to operate 1 – 2 airplanes specialized for test flight and calibration.

h) Capital and financial management

- Strictly manage, effectively and optimally use the sources of capital and resources provided by the State.

- Request the State to consider adjusting the financial mechanism to ensure adequate capital for investment in air traffic control infrastructure.

i) Development investment:

- Focus on investment in air navigation services, which are core operations of VATM. Do not invest beyond the core operations. Only use goodwill, technologies, human resources and other available resources to make external investment if approved by the owner.

- Focus on maintenance and recovery of production capacity, then expansion, technological innovation and effectiveness improvement. Achieve the balance between equipment, personnel and legal environment.

- Prefer the products and services created by VATM’s subsidiaries if their quality meet VATM’s requirements and conformable with law.

- Implement various solutions to raise capital, including taking loans from VATM, taking commercial loans, ODA loans and other source of financing prescribed by law to ensure adequate investment, maintenance and development of air navigation services provided by VATM.

k) Business administration:

- Focus on management of the restructuring scheme approved by the Ministry of Transport, which focus of personnel restructuring; achieves the restructuring objectives by 2020.

- Complete and make publicly accessible rules and regulations of VATM and its affiliates; emphasize accountability of managers.

- Carry out division of power; intensify inspection and supervision works; enhance provision of training for manager, especially in business administration with regard to international integration.

- Complete the internal control and audit system to sustain healthy finance.

- Enhance application of modern and effective business administration standards.

- Enhance capital management and representatives thereof in subsidiaries, associate companies, enterprises in which VATM invest; develop corporate culture.

l) Development of human resources:

- Develop and complete the organizational structure of VATM and its units pursuant to the restructuring scheme approved by the Minister of Transport.

- Establish appropriate work quotas and internal circulation of employees to ensure a reasonable labor structure among the units. Decrease the ratio of indirect workers; increase the ratio of direct workers in the air navigation service chain.

- By 2020, complete the VATM’s job descriptions and pay scales.

- Enhance provision of training for employees to improve their professional knowledge and administration capacity. Focus on investment in developing high-quality personnel (experts) in Europe or the USA to ensure that they meet VATM’s development requirements

- Ensure that 100% of air traffic controllers meet standards of Civil Aviation Authority of Vietnam and ICAO by intensifying provision of training for them. Build an air traffic control training center to provide professional training for air traffic controllers and technicians.

- Improve employee’s living standards with specific measures such as pay raise, bonus, etc. Implement regulations on corporate culture and democracy.

- Focus on evaluating and providing training for VATM’s managers.

- Implement regulations on talent attraction.

m) Aviation industry development:

Intensify development of aviation industry in terms of production of air navigation devices.

IV. IMPLEMENTATION PLAN

1. Air traffic control

a) Roadmap for airspace reorganization:

- 2014: Adjust the TMA of Tan Son Nhat, including height limits of the responsibility areas of APP Tan Son Nhat together with establishing a short-term backup sub-areas for the second sub-area of ACC Ho Chi Minh City.

- By 2015, focus on development and application of non-intersection SID/STAR at Noi Bai Airport and Tan Son Nhat Airport to increase clearance capacity and reduce flight safety risks.

- 2015: After the new ACC Hanoi is put into operation, adjust the responsibility areas of ACC Hanoi (03 sub-areas), ACC Ho Chi Minh City (04 sub-areas), and APP Noi Bai according to the new air traffic management (ATM) system.

- From 2015 to 2020: After the new ACC Hanoi is put into operation, keep reviewing and adjusting the responsible area of ACC Hanoi (04 sub-areas), ACC Ho Chi Minh City (05 sub-areas), and APP Noi Bai; establish the responsibility area of APP Phu Bai, Cat Bi Cam Ranh and aerodrome control tower (TWR) at Long Thanh Airport.

- After 2020: Keep reviewing and adjusting the responsibility areas of ACC Hanoi and ACC Ho Chi Minh City; establish APPs of Cat Bi, Con Son, Pleiku and Phu Cat.

- Keep completing the airway system towards developing one-way routes suitable for both domestic and international flights to reduce flight time and air traffic congestion.

- By 2020: Consider opening one-way North—South routes to increase the clearance capacity of the airway system.

- Cooperate with agencies of the Ministry of National Defense in adjusting and establishing new airways, adjusting positions, sizes of banned areas and restricted areas in operating areas of airports having civil aviation activities to facilitate exploitation of airspace; give priority to civil aviation activities.

b) Application of PBN:

- Apply Required Navigation Performance 4 (RNP4; 30/30 NM) to 02 parallel routes on the East Sea that are L642 and M771 in 2014, to N892 and L625 in the next years.

- Apply RNAV5 to the routes between major airports; RNAV1 SID/STAR at airports having surveillance radars; RNP1 SID/STAR at airports without radars; apply RNP with vertical navigation (VNAV) based on barometric pressure at suitable airports;

- By 2015: Develop and apply PBN at certain airports such as Phu Bai, Phu Quoc. After 2015 and by 2020: develop and apply RNP AR to highland airports where is difficult and airports that can only be accessed from one direction such as Dien Bien, Cam Ranh, Con Son, Lien Khuong, Hue, Tuy Hoa, Phu Cat.

- From 2016: Make mandatory the application RNAV1 or RNAV2 to airplanes operating at or above flight level (FL) 290 and RNAV1 or RNP1 to airplanes operating in a high density TMA. Apply RNP with VNAV based on barometric pressure at every runway of airports having civil aviation activities.

- North – South routes: Apply RNAV5 from 2014 to 2020 together with PBN.

c) Separation minimization:

By 2020, propose a plan for vertical separation minimization based on radar from 10NM to 05NM outside TMA, from 05NM to 03NM inside TMA.

d) Air traffic control service management:

- From 2013 to 2016:

+ Invest and operate a receiver autonomous integrity monitoring (RAIM) system for signals from the global navigation satellite system (GNSS);

+ Complete the global coordinate database (WGS-84).

- From 2014 to 2020:

+ Upgrade or replace the ATM system of ACC Ho Chi Minh City and effectively operate the ATM Hanoi;

+ Apply air traffic flow management and airspace management at appropriate times with participation of air traffic control authorities and airspace management and protection authorities.

dd) Aeronautical information services:

- From 2014: Develop and apply an aeronautical information service quality control as required by ICAO. Apply the electronic terrain and obstacle database (eTOD).

- By 2015: Establish and utilize the eTOD at Noi Bai Airport and Tan Son Nhat Airport. After 2015 and by 2020: establish and utilize the eTOD at airports with high density of flights and applying PBN such as Da Nang Airport, Cat Bi Airport, Cam Ranh Airport, Phu Quoc Airport, Long Thanh Airport.

- 2020: Complete the conversion to aeronautical information management.

2. Technologies

a) Investment, reinvestment and maintenance of existing CNS technologies:

- Buying and upgrading ATM systems at ACC Hanoi, APP Da Nang and ACC Ho Chi Minh City.

- Sustain VHF communications as the major means of communications; establish new or gradually replace parts of VHF A/G, HF A/G devices from 2020; ensure backup communications stations in sub-areas and in the state of emergencies.

- Selectively apply VHF data communications technologies and aeronautical telecommunication network (ATN) in the two FIRs.

- Expand and improve the capacity of the point-to-point satellite communications network along North - South routes and to/from communications stations and domestic airports.

- Build new beacons, replace old beacons at airport and vital positions on the airway system with DVOR/DME devices to expand coverage.

- Gradually access new navigation technologies according to the roadmap for application of PBN.

- Maintain non-directional beacons (NDB) by 2020 and discard expired ones; do not buy new NDBs.

- Maintain and improve the radar-based aviation surveillance system; widely apply new surveillance technologies according to the schedule of ICAO to replace secondary radars.

- Apply maintenance standards; implement the plan for device replacement and maintenance; provide adequate funding for maintenance; carry out test flights and calibration as recommended by ICAO.

b) Application of new technologies:

- Regarding AIDC: now to 2020, apply AIDC according to commitment to ICAO, connect Vietnam’s air traffic control centers with those of neighboring countries using the existing aeronautical fixed telecommunication network (AFTN) and gradually applying AIDC on the ATN.

- Regarding AMHS: From now to 2020, develop the AMHS nationwide, convert from AFTN to ATN/AMHS at every airport nationwide, replace AFTN/AMHS with ATN/AMHS at Tan Son Nhat Airport, Hanoi/Gia Lam Airport and Da Nang Airport. Connect to neighboring countries by 2015.

- Switching from VSAT from Vinasat:

After Air Traffic Control Center of Hanoi is completed (2014), invest in new 07 terrestrial stations at: Gia Lam, Moc Chau, Vinh, Dien Bien, Cat Bi , Dong Hoi, Vientiane;

+ Replace high frequency devices and antennae at VSAT stations in the Central region and the South to be prepared for use of the C band and extended C band; old modems are still used;

+ Invest in replacement of modems and combination of MUX channels at stations in the Central region and the South.

- Develop a ADS-B: Step by step invest in terrestrial ADS-B stations to improve surveillance capacity, especially of low level flights. Deploy terrestrial ADS-B stations towards nationwide ADS-B coverage after 2020.

- Consider using secondary surveillance radar Mode S, which is capable of broadcasting aerial and terrestrial digital signals serving surveillance of dense airspace.

3. Capital and financial management

- Reassess capital efficiency at every unit to optimize funding sources: equity, ODA, capital from state budget and other investors. Review and complete financial management regulations, unit prices, economic and technical norms.

- Only raise capital when VATM’s funding sources are not adequate to meet its need. In such cases, a feasible and lawful repayment plan must be prepared.

4. Development investment

- Develop an investment plan pursuant to the Prime Minister’s Decision No. 21/QĐ-TTg dated January 08, 2009 and Decision No. 2339/QĐ-BGTVT dated October 19, 2011 and ICAO requirements; ensure uniformity and order or priority.

- Review existing resources to utilize land, property and technical devices. Do not invest in real estate, securities, banking, insurance and other risky fields.

- Cooperate in service provision with partners that have financial potential, business experience, administration capacity and modern technologies. Only make investment if the funding source is lawful and effective and such investment does not affect the funding source for VATM’s primary business lines.

- Improve investment efficiency by: simplify investment procedures, professionalize investment personnel, especially those who directly perform investment works; circulate investment personnel to achieve understanding, improve knowledge of law and practice skills.

5. Aviation industry development

- Provide instructions for and enable ATTECH to fulfill their objectives.

- Raise capital from appropriate sources to invest in research and development of aviation industry products; enhance international cooperation in manufacturing and trading of aviation industry products where economic efficiency is the target.

6. Business administration

- Strengthen the administration apparatus, enhance provision of training for managers.

- Carry out inspection and supervision in a serious manner, especially internal control, audit and financial risk control to promptly take preventative measures.

- Strengthen the science and technology management and quality control apparatus among VATM and its subsidiaries. Adhere to ISO procedures and targets; combine evaluation of performance with provision of benefits for employees.

- Cooperate with domestic and foreign partners in technology transfers and technical assistance in replacement of old equipment in order to improve productivity and product quality.

- By 2015, develop a safety management system at air navigation service centers.

- Widely apply information technology and wide area network (WAN) throughout the company, which is the basis for development of personnel management, electronic documents, online meeting applications, etc. in order to decrease administrative expenses and improve effectiveness of information exchange among units of VATM.

7. Development of human resources

- Improve the organization structure. Focus on training and development of key personnel, including air traffic controllers and technicians; decrease the ratio of indirect workers. All air traffic controllers satisfy the language proficiency requirements of ICAO. Encourage air traffic controllers to improve their knowledge; 35% - 40% are expected to have a bachelor’s degree in English language.

- Develop a plan for employment of air traffic controllers to meet the increasing flight traffic; establish new air traffic control service centers and replace unqualified air traffic controllers.

- Plan the increase in human resources serving operation and maintenance of the new CNS/ATM system.

- Diversify the training methods (short-term, long-term, at home, overseas training). Enhance provision of new training courses and refresher courses both at home and overseas in order to ensure adequate quantity and qualification of employees.

- Focus on employees specialized in air traffic control, teachers, trainers, developers and operators of new systems.

- Exploit the resources and capacity of domestic institutions such as Vietnam Aviation Academy; develop VATM’s training institutions to be able to control quantity and quality of personnel.

Article 2. Organization of implementation

1. Enterprise Management Department shall:

- Take charge and cooperate with relevant authorities in instructing VATM to implement solutions for capital and financial management, development investment and business administration.

- Take charge and cooperate with relevant authorities in supervising the implementation of the Strategy; propose solutions for difficulties that arise during implementation to the Minister.

2. Civil Aviation Authority of Vietnam shall:

Instruct VATM to implement solutions for air traffic control, aviation industry development and human resources development in accordance with the approved master plans for aviation development; inspect the implementation of such solutions and report to the Ministry of Transport.

3. Units affiliated to the Ministry of Transport shall provide instructions for VATM within the scope of their authority.

4. VATM shall:

- Take charge and cooperate with relevant authorities and units in implementation of the Strategy;

- Develop annual and 5-year business plans and development plans; other action plans and programs for implementation of the Strategy, then submit them to competent authority for approval and supervision as prescribed by law and VATM’s charter.

- Evaluate the progress of the Strategy every 6 months and submit reports to the Ministry of Transport, which will adjust the Strategy accordingly and propose feasible and effective solutions.

Article 3. This Decision comes into force from the day on which it is signed.

Chief of the Ministry Office, the Ministerial Chief Inspector, Directors of Civil Aviation Authority of Vietnam, the Chairperson of the Board of members and General Director of VATM, heads of relevant authorities and units are responsible for the implementation of this Decision./.