Decision No. 1468/QD-TTg dated August 24, 2015 of the Prime Minister approving the adjusted master plan on development of Vietnam’s railway transport through 2020, with a vision toward 2030

DECISION

Approving the adjusted master plan on development of Vietnam’s railway transport through 2020, with a vision toward 2030[1]

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 transport through 2020, with a vision toward 2030, with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

1. The master plan on development of Vietnam’s railway transport must be in line with the Strategy for Vietnam’s transport development and the Strategy for development of Vietnam’s railway transport; and closely interrelated with development master plans of other transport sub-sectors and relevant master plans.

2. To prioritize funds to make intensive investment in  railway infrastructure on the basis renovating and upgrading existing infrastructure facilities while building new ones in a steady and gradual manner so as to create a driving force for the national socio-economic development; to develop railway networks linked with big seaports, industrial parks and bordering countries, thereby promoting international integration; to rapidly develop urban railway networks as the core of public transport in major cities, first of all Hanoi and Ho Chi Minh City.

3. To concentrate investment in upgrading existing railway routes up to technical regulations in a set order of priority so as to promote the leading role of railway in passenger and cargo transport along the North-South and East-West axes. Concurrently, to develop railway infrastructure in synchrony with means of transport and transport management and administration equipment according to an appropriate roadmap for periods up to 2020 and from 2020 to 2030 so as to effectively exploit existing railway routes.

4. To develop new railway routes according to advanced technical standards, ensuring sustainable development and connectivity to domestic and foreign railway networks.

5. To step by step increase the market shares of, and develop, railway transport in the direction of modernity, high quality, reasonable freight, fastness, safety, energy conservation, environmental protection and less social costs; to link railway stations with cargo distribution centers, big seaports, inland container depots (ICD) and other modes of transport; to make the railway sector be capable of providing high-volume cargo transport along long and medium distance, long-distance and inter-provincial passenger transport and mass transit in big cities, attaching importance to inner city-to-outer suburbs passenger transport services to meet socio-economic development requirements.

6. To strongly develop multimodal transport, logistics services and supporting facilities for cargo transport; to combine railway transport business with other business activities at railway stations so as to create convenience for passengers and facilitate cargo transport.

7. To concentrate state resources on, and make the best use of foreign development assistance sources for, investment in essential infrastructure; to encourage, promote and mobilize to the utmost resources of domestic and overseas organizations and individuals for investment in the development of railway infrastructure, railway transport and other support services; to attach importance to the maintenance of existing and newly built infrastructure facilities in order to assure their efficient, smooth, orderly and safe operation and sustainable development.

8. To set aside appropriate land areas for railway development and assure railway traffic safety corridors and railway work protection scopes in accordance with the Railway Law. To work out electricity use plans in conformity with railway development demand. To protect the environment, ensure green growth and active response to climate change.

9. To develop human resources and appropriate specialized scientific and technological staff according to a set roadmap to satisfy requirements for railway industrialization and modernization in different periods; to intensify international cooperation, lay the foundation for development of the railway industry to properly meet domestic demand and strive for export.

II. DEVELOPMENT OBJECTIVES

1. To synchronously develop railway transport in terms of infrastructure, means of transport, transport services and railway industry up to advanced and modern level, contributing to promoting the growth of other industries and striving to turn Vietnam into an industrialized country by 2020.

2. To prepare necessary conditions to gradually form a complete railway network linking socio-economic centers and key economic regions nationwide and combined with other modes of transport; to form railway mass transit systems in urban centers and big cities; to provide inner city-to-outer suburbs, intra-regional and long-distance railway transport services in a smooth, fast, safe and competitive manner, meeting domestic demands, facilitating international exchange and ensuring national defense and security.

3. To adopt specialized and attractive mechanisms to encourage all economic sectors to invest in the construction and operation of railway infrastructure and provision of railway transport services and other support services.

4. To intensify investment in physical and technical foundations, renew training programs, diversify training forms and 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 TRANSPORT THROUGH 2020, WITH A VISION TOWARD 2030

1. Railway transport:

a/ Market shares:

- By 2020: Railway transport will satisfy around 1%-2%, and 1%-3% of the total passenger transport and cargo transport demands, respectively, in which urban railway passenger transport will satisfy around 4%-5% of the mass transit demand in Hanoi and Ho Chi Minh City.

- By 2030: Railway transport will satisfy 3%-4%, and 4%-5% of the total passenger transport and cargo transport demands, respectively, in which urban railway passenger transport will satisfy around 15%-20% of the mass transit demand in Hanoi and Ho Chi Minh City.

b/ Passenger transport: To concentrate on developing transport services with distances of between 300km and 500km along the North-South and East-West axes, and urban, inner city-to-outer suburbs and inter-provincial railway transport services on the basis of effectively exploiting the existing railway system and newly built railway routes.

c/ Cargo transport: To rapidly develop high-volume cargo transport from mines, seaports, ICDs, factories and large economic zones, etc., in order to ease the load on road transport and reduce traffic accidents. To apply modern transport technologies so as to meet increasing demands of customers.

d/ To improve the competitiveness of transport services by accelerating the equitization of railway transport enterprises and the socialization of railway transport in order to raise service quality and reduce fares and freight. To attract economic sectors to participate in developing railway transport and railway support services, to enhance the state management of railway transport;

dd/ To expand linkage in international and regional railway transportation and with bordering countries on the basis of existing and future railway networks.

2. Infrastructure:

a/ By 2020:

To concentrate investment in the upgrading of existing railway routes up to technical regulations, prioritizing the upgrading and modernization of Hanoi-Ho Chi Minh City route. To develop urban railway networks in big cities, first of all Hanoi and Ho Chi Minh City. To study the construction of new 1,435mm-gauge routes from Ho Chi Minh City to Vung Tau city and Can Tho city. To study the construction of some railway sections linking with the Trans-Asian railway and Lao railway networks, sections linking to Central Highlands provinces to serve aluminum exploitation and production activities; and sections linking to seaports and large economic zones. To further conduct feasibility study so as to work out appropriate investment plans for the construction of the North-South high-speed railway route and railway routes under the Vietnam-China “Two corridors and one economic belt” program, specifically as follows:

- For existing railway networks:

+ To upgrade and gradually modernize the 1,726km Hanoi- Ho Chi Minh City railway route to achieve the average speed of 80-90 km/h, for passenger trains, and 50-60 km/h, for cargo trains; firstly concentrate on the upgrading of the railway section in the areas of Hai Van Pass, Khe Net Pass, Hoa Duyet-Thanh Luyen; to renovate and upgrade weak bridges and tunnels; to improve horizontal alignment of railway routes, to construct new rails and extend rails in railway stations, etc;

+ To renovate, upgrade, and step by step improve up to the national railway grade the 285km-long Yen Vien-Lao Cai; 96km-long Hanoi (Gia Lam) - Hai Phong; 54.6km-long  Hanoi (Dong Anh)-Thai Nguyen (Quan Trieu); and 156km-long Hanoi (Yen Vien)-Lang Son (Dong Dang) routes;

+ To renovate and upgrade railway stations with high demands so as to improve service quality and raise the market shares of railway transport, prioritizing first of all Hanoi-Ho Chi Minh and Yen Vien-Lao Cao routes;

+ To gradually eliminate railway-intersecting roads and build railway-intersecting roads with protection facilities, feeder roads, safety corridor barricades and protection barriers and flyovers at crossings between railways and national highways and provincial roads with big traffic flow and high traffic safety risks so as to establish safety corridors along the whole railway network.

- For newly built railway routes:

+ To complete and put into operation the whole 129km-long Yen Vien-Pha Lai-Ha Long-Cai Lan route;

+ The North-South high-speed railway route: To study the plan of construction of a high-speed and 1,435mm-gauge dual-track railway route, preparing necessary conditions to gradually prioritize the construction of railway sections with high demands, especially sections linking with Hanoi-Ho Chi Minh City, such as Hanoi-Vinh section and Ho Chi Minh City-Nha Trang section;

+ To study the construction of the eastern-belt route (the 80km-long Yen Vien-Lac Dao-Ngoc Hoi route) in Hanoi; Bien Hoa-Vung Tau route (of which priority will be given to the 65.4km-long Trang Bom-Thi Vai, Cai Mep section) and the 32.65km-long Hai Phong-Lach Huyen seaport route;

+ To study the construction of Lao Cai-Hanoi-Hai Phong, Hanoi-Dong Dang, Ho Chi Minh City-Can Tho (of which priority will be given to Ho Chi Minh City-My Tho section) routes, the 67km-long Dak Nong-Chon Thanh, the 128km-long Di An-Loc Ninh route linked with the Trans-Asian railway network, and the 67km-longVung Ang - Cha Lo (Mu Gia) route linked to the Lao railway network in Mu Gia.

- For urban railway: To complete and put into operation some urban railway routes in Hanoi (Cat Linh-Ha Dong and Nhon-Hanoi station) and Ho Chi Minh City (Ben Thanh- Suoi Tien); to prepare and make investment in urban railway routes under master plans approved by the Prime Minister.

b/ By 2030:

- For the existing railway networks:

+ To complete the renovation and upgrading of, and effectively exploit, existing railway routes to meet transport demand;

+ To complete the construction of system of works to ensure safety of railway traffic corridor, grade-separated intersections between railways and roads in accordance with the Railway Law.

- For newly built railway networks:

+ To commence the construction of electrified 1,435mm-guage high-speed dual-track railway routes (in the immediate future, to operate at a speed of 160-200 km/h) with the infrastructure facilities qualified for operation at the speed of 350 km/h in the future, prioritizing sections in high demand along the North-South axis depending on capital raising capacity;

+ To study the construction of 1,435mm-gauge electrified railway routes: the 380km-long Lao Cai-Hanoi-Hai Phong route and 156km-long Hanoi-Dong Dang railway route;

+ To study the construction of railway routes linking to seaports, economic zones, industrial parks and tourist sites: Dieu Tri-Nhon Hoi route; Vung Ang-Mu Gia route linked with the Lao railway network; My Thuy seaport-Dong Ha-Lao Bao route; route to Huong Canh ICD (Vinh Phuc), Nam Dinh-Thinh Long route and Ninh Co economic zone, routes linking to port clusters in the Northern Central area (Nghi Son, to restore the railway route to Cua Lo seaport), port clusters in the Middle Central area (Chan May, Lien Chieu, Dung Quat), port clusters in the Southern  Central area (Quy Nhon, Phan Thiet, to restore the Nga Ba station-Ba Ngoi port route);

+ To study the construction of coastal routes of Nam Dinh - Thai Binh - Hai Phong - Quang Ninh of around 120 km; and Ha Long - Mui Chua - Mong Cai of around 150 km;

+ To study the contruction of railway routes linking to Central Highlands provinces: Dak Nong - Kon Tum - Dak Lak - Binh Phuoc of around 550 km, Tuy Hoa - Buon Ma Thuot of around 169 km, and Dak Nong - Binh Thuan of around 121 km;

+ To study the construction of the routes of Di An - Loc Ninh linking to the Cambodian railway network; Lang Son - Quang Ninh (Mui Chua) of around  95 km; and Thai Nguyen - Tuyen Quang - Yen Bai of around 73 km;

+ To restore Thap Cham - Da Lat route of around 84 km.

- For urban railway: To further invest in, and strive to complete the construction of, urban railway projects in Hanoi and Ho Chi Minh City under Prime Minister-approved master plans.

(The list of projects on investment in railway infrastructure up to 2020, with a vision toward 2030, is prescribed in Appendix I to this Decision.

The additional land and electricity use demand up to 2020, with a vision toward 2030, is prescribed in Appendix II to this Decision).

3. Railway industry:

a/ By 2020:

- To renovate and build establishments that manufacture and assemble locomotives and cars and wagons, or manufacture spare parts with the localization rate of 40%-60%; to renew technologies, expand production to basically meet the requirements for maintenance, renovation, repair and upgrading of existing railway networks, and strive for export;

- Locomotives: To develop the assembly of diesel locomotives for old railway networks and electric locomotives for new electrified railway networks. At the same time, to develop electric multiple units (EMU) for passenger transport in inner city and outer suburb areas;

- Cars and wagons: To concentrate on developing the industry of building cars and wagons 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 boost domestic manufacture to meet demand for maintenance of existing railways and strive for export.

b/ By 2030:

- To invest in modern technological lines for establishments that manufacture and assemble locomotives, cars and wagons, or manufacture spare parts with a localization rate of 60%-80%; to expand production to build high-quality locomotives, meeting the demand for domestic consumption and export.

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

IV. IMPLEMENTATION SOLUTIONS AND POLICIES

1. State management

To intensify state management and consolidate the model of railway infrastructure system management and exploitation. To ensure smooth, orderly, safe, accurate and effective operation of the railway transport system; contributing to socio-economic development and national defense and security assurance. To develop the railway sector according to strategies, master plans and plans toward modernity and synchronicity; to link railway transport with other modes of transport. To clearly distinguish state agencies’ state management from enterprises’ business management; and commercial operation of infrastructure from railway transport business invested by the State.

2. Capital mobilization

- To proactively allocate state budget capital; adopt special mechanisms to mobilize to the utmost capital from all domestic and foreign economic sectors such as ODA capital, preferential capital of foreign governments, government bonds, etc. for investment in development of railway infrastructure, especially urban railway routes, inner city-to-outer suburbs routes and important routes along the North-South and East-West axes.

- To formulate and adopt socialization mechanisms to encourage all economic sectors to invest in railway infrastructure in the form of rail infrastructure franchising, joint-venture, public-private partnership (PPP) and project bond issuance, etc. To formulate special mechanisms to exploit land areas under railway projects, especially urban railway and station building projects, etc., so as to mobilize capital for investment in the national railway infrastructure for railways and sections with competitive advantages according to master plans and state management regulations.

- To accelerate the implementation of socialization policies in railway transport business and railway transport support services; strongly attract economic sectors, including also foreign investors, to invest in railway vehicles and railway transport support facilities (station platforms, warehouses, handling devices, etc.).

- To adopt mechanisms to support railway industry establishments to import new modern technology lines from advanced countries under the national key mechanical program in order to form industrial establishments assembling locomotives, manufacturing cars and wagons and railway spare parts and accessories, and step by step replace backward, small-capacity, energy-intensive vehicles.

3. Human resource development

- To adopt rational investment plans for human resource training and development. To formulate policies to encourage and attract professionals to work in the railway transport sector. To quickly organize the training of human resources specialized in electrified, high-speed and urban railway technologies.

- To intensify investment in physical and technical foundations, renew training programs and diversify training forms; to attach importance to the socialization of training activities, ensuring sufficient high-quality human resources to meet development requirements of a modern railway sector.

- 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.

- To establish railway-specialized education and training establishments; to upgrade railway vocational schools to be capable of training human resource to meet the railway sector’s development requirements.

- To prioritize overseas training in the railway profession.

4. Science and technology

To adopt policies to encourage the research into, and application of, new scientific and technological advances, new and modern materials in research, training, transport business, infrastructure construction and maintenance, manufacture and service activities. To attach importance to the application of information technology in formulating plans on exploitation, collection and processing of customer information; to develop automatic booking and control systems, to heighten quality management and standardization of industrial products under the regulations of Vietnam and international railway organizations.

5. International cooperation

To expand international cooperation, especially with countries with modern railway systems, in order to absorb their scientific and technological advances and railway development experience; to cooperate in human resource training for receipt and transfer of modern, advanced new technologies to meet development requirements in the country and expand the market to countries in regions and in the world in the future. To further research and better legal documents in line with the regulations of international cooperation organizations of which Vietnam is a member.

6. Transport development

- To encourage all economic sectors to participate in railway transport and railway transport support services. To create a fair and equal competitive environment among economic sectors participating in transport business on the basis of equitizing transport enterprises and accelerating the socialization of railway transport.

- To formulate a price and charge system serving as a tool for macro-regulation and setting of orientation of rational railway transport development.

- To develop railway transport and railway transport support services in order to raise the competitiveness of railway transport services against other modes of transport. To strongly develop multimodal transport and logistics services for cargo transport.

- To enhance management and quality inspection of vehicles and transport services, specifically for passenger transport. To develop organizations and associations specialized in customers’ interest protection.

7. Development of the railway industry

- To encourage and create conditions for expanding industrial production; to form joint ventures and association between domestic and overseas enterprises to mobilize capital, transfer technology and exchange management and administration experience and implement the localization roadmap; to concentrate on the manufacture of products with competitive advantage.

- To adopt policies to facilitate the access and application of new technologies and techniques.

8. Traffic safety

- To enhance the inspection of railway infrastructure and vehicle maintenance to ensure safety in train operation.

- To increase the effectiveness of law education and dissemination in combination with enhancing inspection, examination and handling of violation of the railway law.

- To enhance salvage and rescue in order to minimize damage caused by railway traffic.

- To completely restore railway traffic safety corridors according to the Prime Minister-approved plans.

9. Environmental protection and sustainable development

- To step by step control, prevent and minimize environmental pollution in railway transport, focusing on the disposal of industrial wastes and scraps. To improve energy use efficiency and rapidly develop urban railway systems.

- To improve adaptability to climate change and sea level rise of railway infrastructure systems.

- To intensify the application of energy-efficient technologies and vehicles; to use clean fuels, renewable energy and other alternative energy sources in railway transport activities.

10. To study and adopt policies to support loss-making railway services which need to be maintained to serve socio-economic development and national defense and security assurance.

V. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Transport shall:

- Manage and direct the implementation of the master plan on development of Vietnam’s railway transport up to 2020, with a vision toward 2030; and formulate, approve, or submit to competent authorities for approval, detailed plans and schemes in conformity with this master plan.

- Study and propose the Prime Minister to consider and decide to update or supplement the master plan to suit national development requirements, when necessary.

2. The Ministry of Planning and Investment and the Ministry of Finance shall prioritize state budget funds for investment in railway infrastructure development; study and adopt preferential mechanisms and policies to mobilize and effectively use funds for investment in railway development.

3. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Transport in, formulating regulations on management and use of land areas for the railway sector.

4. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Transport in, improving laws on logistics services; manage the manufacture, building and import of railway vehicles; and study and formulate electricity supply plans, ensuring stable electricity supply for electrified railway and information and signaling systems.

5. The Ministry of Education and Training shall coordinate with the Ministry of Transport in renewing training programs to meet human resource development requirements, facilitating and prioritizing overseas training in the railway profession.

6. The Ministry of Science and Technology shall coordinate with the Ministry of Transport in researching and testing new technologies and materials; promulgate regulations on economical and effective energy use applicable to railway vehicles.

7. Provincial-level People’s Committees with railway routes running through shall proactively allocate land areas to develop railway transport according to strategies, plannings and plans; and ensure security, order and traffic safety and organize public information to enhance the sense of law observation and protection of railway facilities.

Article 2.This Decision takes effect on the date of its signing and replaces the Prime Minister’s Decision No. 1436/QD-TTg of September 10, 2009, approving the adjusted master plan on development of Vietnam’s railway transport up to 2020, with a vision toward 2030.

Article 3.Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG