Decision No. 318/QD-TTg of March 14, 2014, approving the strategy for development of transportation services through 2020, and orientations toward 2030

 DECISION

APPROVING THE STRATEGY FOR DEVELOPMENT OF TRANSPORTATION SERVICES THROUGH 2020, AND ORIENTATIONS TOWARD 2030 (*)

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Strategy for Vietnam’s socio-economic development during 2011-2020 (the Documents of the XI^th National Congress of the Communist Party of Vietnam);
Pursuant to the Prime Minister’s Decision No. 175/QD-TTg of January 27, approving the overall strategy on development of Vietnam s service sector through 2020;
Pursuant to the Prime Minister’s Decision No. 808/QD-TTg of June 29, 2012, promulgating the action program for implementing the overall strategy on development of Vietnam s service sector through 2020;
Pursuant to the Prime Minister s Decision No. 355/QD-TTg of February 25,2013, approving the adjusted strategy for transport development through 2020, with a vision toward 2030;
At the proposal of the Ministry of Transport,
DECIDES:
Article 1. To approve the Strategy for development of transportation services through 2020, and orientations toward 2030 (below referred to as the Strategy), with the following principal contents:

1. VIEWPOINTS

– The Strategy must conform to the socio-economic development strategy, the overall strategy on development of Vietnam’s service sector, the transport development strategy and relevant sectoral development master plans.
– To improve institutions and policies on state management of transportation services with a view to establishing a favorable and transparent business environment to promote the development of transportation businesses forming a socialized, competitive, fair and sound transportation market; to encourage investment to develop domestic and international transportation and adopt support and incentive mechanisms for Vietnamese businesses that make offshore investment in the field of transportation.
– To develop transportation in a harmonious and sustainable manner on the basis of bringing into the fullest play the advantages of each mode of transportation with a view to meeting transportation demands to serve national socio-economic development and ensure security, national defense and international integration.
– To develop modern cargo and passenger transportation services; to apply synchronous solutions to raising service capacity and quality, reducing transportation costs and raising economic competitiveness; to step up the development of multimodal transportation; to take the initiative in integration and cooperation for developing international transportation capacity and joining the global supply chain; to accelerate the development of mass transit in urban centers and along key transportation corridors.
– To rationally develop modem and comfortable means of transportation in terms of quantity and type, meeting technical standards on safety, energy conservation and environmental friendliness.
– To develop Vietnamese transportation businesses that apply an advanced governance model, achieve high business effectiveness and competitiveness, dominate the domestic transportation market, playing an important role in the transportation of imports and exports, and step by step operate effectively in the international transportation market.
– To improve the quality of human resource training, while stepping up scientific research and application, master and develop new technologies in governance and provision of transportation services; to regard human resources and technologies as a major basis for raising the productivity, quality and efficiency of transportation business lines.

1. OBJECTIVES
2. Overall objectives

To improve the quality of transportation services, reduce transportation costs, ensure traffic order and safety and environmental protection, timely and fully satisfy cargo and passenger transportation demands and raise economic competitiveness for gradually turning Vietnam into a cargo and passenger transshipment center of the region, making great contributions to successfully implementing the socio-economic development strategy and ensuring national defense and security.

2. Specific targets

a/ By 2020
The total freight traffic will reach around 1.3 trillion tons.km (equivalent to 2.2 billion tons of cargo) and the total passenger traffic will reach 340 billion passengers.km (equivalent to 6.3 billion passengers), with an annual average growth rate of 9.1%, for cargo, and 10.7%, for passengers, during 2013-2020 (see details in the attached Appendix, not translated).
To restructure the domestic transportation market by reducing the market share of road transportation and increasing the market shares of railway and inland waterway transportation, especially on major transportation corridors. The market shares of inter-provincial cargo transportation by road, railway and inland waterway will be 54.4%, 4.3% and 32.4%, respectively.
The market shares of inter-provincial passenger transportation by road and railway will be around 93.2% and 3.4%, respectively (see details in the attached Appendix, translated).
Mass transit in Hanoi will meet around 25% of demand, of which urban railways will account for 2-3%; these figures for Ho Chi Minh City will be 20% and 4-5%, respectively.
To raise the quality of cargo and passenger transportation services with reasonable costs, contributing to reducing logistics costs of the economy to around 15% of GDP; to complete the bus transit and bus rapid transit networks in urban centers of grade 1 or higher grade; to put to operation 1 -2 urban railway routes in Hanoi capital and Ho Chi Minh City; to develop mass transit vehicles of small capacity and taxis for collecting passengers for urban bus and railway services.
To increase traffic safety in transportation business activities, striving to annually reduce 5-10% the number of deaths due to commercial vehicle accidents, and minimize aviation incidents.
To raise technical safety and environmental protection standards of means of transport as well as energy efficiency; to control, prevent and limit the increase of environmental pollution in transportation activities.
To enhance the role of state management and step by step improve the legal system on transportation services; to clearly define and separate the functions of state management and trading in order to create an equal, open and transparent business environment.
To restructure the transportation force and step up the socialization of transportation business investment, especially in the railway sub-sector; to complete the equitization of all state enterprises in the transport sector.
b/ Orientations toward 2030
The total freight traffic will reach around 2.5 trillion tons.km (equivalent to 4.3 billion tons of cargo) and the total passenger traffic will reach 667 billion passengers.km (equivalent to 14 billion passengers), with an annual average growth rate of 6.7 %, for cargo, and 8.2%, for passengers, during 2021-2030 (see details in the attached Appendix, not translated).
To further restructure transportation so that the market shares of inter-provincial cargo transportation by road, railway and inland waterway will be 51.2%, 7.9% and 30.9%, respectively. The market shares of inter-provincial passenger transportation by road and railway will be around 92% and 4.7%, respectively (see details in the attached Appendix, not translated).
Mass transit in Hanoi will meet around 40% of demand, of which urban railways will account for around 17%; these figures for Ho Chi Minh City will be 35% and around 18%, respectively.
To raise the productivity, quality and efficiency of passenger transportation services to the regional advanced level, contributing to reducing Vietnam’s logistics costs to below 15% of GDP; to improve the multimodal mass transit system with urban railway networks as the key in major routes within urban centers of grade 1 or higher grade; to improve the bus networks in urban centers of grade 2 or higher grade nationwide; to develop mass transit vehicles of small capacity and taxis for collecting passengers for urban bus and railway services.
To ensure higher traffic safety in transportation business activities, striving to reduce the rate of deaths due to traffic accidents per 10,000 commercial vehicles to be equal to or lower than the national rate of deaths caused by means of transport in general; to minimize aviation incidents.
To develop environment-friendly and energy-efficient transportation services and control environmental polluting constituents in transportation activities.
To put into place a complete legal system on transportation management, and ensure capacity for effective and strict law enforcement.
To develop transportation businesses of various sizes that apply an advanced governance model, possess qualified human resources and high level of technology application in corporate governance, and step by step expand transportation business investment in countries in the region and the world.
III. STRATEGIC ORIENTATIONS

1. Development of the transportation market

a/ Road transportation
– To step up the development of transportation services for collecting cargo from region- based distribution centers to retail points; short-distance transportation with small to medium volume; to join multimodal transportation chains linking hubs of different large-volume transportation modes (railway, inland waterway, seaway and airway) and medium and small distribution centers.
– To further develop short- and medium-distance (under 500 km) inter-provincial passenger transportation; intra-provincial transportation and mass transit by bus; and collection of passengers for public transportation routes.
– To further develop road transportation between rural and urban areas for linking agricultural production areas with outlets; to pay special attention to road transportation services in border, deep-lying, remote and extremely disadvantaged areas; to promote socio-economic development in combination with security and defense assurance, contributing to successfully implementing the national target program on building a new countryside.
– To enhance cooperation and connection to facilitate cross-border transportation between Vietnam and Laos, Cambodia, China and regional countries.
b/ Railway transportation
– To prioritize the development of railway transportation services for transporting large- volume cargo in medium-plus distance (300 km or longer); to step up inter-provincial passenger transportation services on major transportation corridors and mass transit in major cities.
– To completely link railways with major seaports and key inland waterway ports; to give incentives for the investment in and operation of large inland container depots (ICD) in key economic regions and along railway corridors ensuring the connection of ICDs with railways and key national highways and expressways.
– To intensify international cooperation on railway transportation with member countries of the Organization for Cooperation between Railways (OSZD) and cooperation in developing the trans-Asian railway; to prioritize the raising of cargo transportation capacity on the Hai Phong-Lao Cai railway.
– To rapidly develop modem railway transportation services, ensuring-convenient multimodal transportation connection; to implement the master plan on investment in railway infrastructure on the East-West corridor, linking with Cambodia, the Central Highlands and the Mekong delta region.
c/ Inland waterway transportation
– To prioritize and promote the development of inland waterway transportation mainly for transporting bulk, super-length and super-weight cargo to large seaports and industrial and service centers along key inland waterway routes, especially in the national inland waterway networks in the Mekong and Red river delta regions, river-sea waterways and waterways to islands and on large lakes.
– To raise the capacity to provide transportation support services at large inland waterway ports, especially loading/unloading capacity and inland waterway container transportation logistics services.
– To enhance cooperation to facilitate cross-border inland waterway transportation between Vietnam and Cambodia and between Vietnam and China.
d/ Sea transportation
– To focus on developing exports and imports transportation capacity, international cargo transportation, transportation along the north-south coastal route, and cargo and passenger transportation from the mainland to offshore islands.
– To continue maintaining the dominating position in the domestic sea transportation market and increase the transportation capacity and market share of Vietnam compared to other countries and develop international transportation in Southeast Asia and Northeast Asia; to step by step expand the exploitation of European, American, African and South Asian markets; to participate in the provision of services along ocean shipping routes and in the global supply chain.
– To prioritize the development of the transportation capacity for linking key seaports in the Cai Mep-Thi Vai area with the Cambodian market; ports in the Hai Phong area with the southwestern region of China; and ports in the central region with Laos, Thailand and Myanmar.
– To step up the development of sea transportation and marine tourist products ; to increase the capacity to accommodate tourist ships and increase convenient links with tourist sites in the mainland; to step by step develop large cruise ships to link Vietnam with important tourist sites around the world.
dd/ Air transportation
– To further raise bilateral and multilateral air transportation capacity for the traditional markets in Southeast Asia, Northeast Asia, China and Oceania; to promote air transportation links with South Asia and Eastern European and former Soviet Union countries.
– To expeditiously open long-distance air routes to Europe, North America, Latin American and Africa and increase their passenger and cargo transportation capacity; to encourage investors to develop regional transshipment air terminals (regional hubs) and adopt policies to attract airlines to open long-distance air routes to these hubs.
– To step up the development of cargo transportation services and form a separate network of cargo transportation routes; to encourage investors to develop a regional cargo hub in Chu Lai and adopt incentive mechanisms to encourage airlines to launch cargo flights to this hub.
e/ Multimodal transportation and logistics services
– To develop international multimodal transportation services and multimodal connection in domestic transportation; to rapidly complete the master plan on the network of multi-level distribution centers (inland container depots, warehouses and yards) and routes for collecting cargo in major urban centers and key economic regions.
– To improve mechanisms and policies to encourage and create favorable conditions for investors to develop international logistics services and provide third-party logistics (3PL) or fourth-party logistics (4PL) services; to step up the application of e-commerce and modem supply chain governance.
– To study the establishment of an interdisciplinary agency for coordinating the functions and tasks of ministries, sectors and localities in logistics service investment and development.
g/ Urban mass transit
– To rationally develop mass transit in major urban centers and expeditiously complete bus transit and bus rapid transit (BRT) networks in urban centers of grade II or higher grade.
– To accelerate investment in the provision of mass passenger transportation services such as urban railways and rapid bus along main transport axes and central belt roads of special urban centers.
– To rationally develop transportation services for collecting passengers in areas inaccessible to buses and concurrently raise the quality and traffic safety of taxi services with a view to increasing to the utmost the service coverage of mass transit, especially for the elderly, tourists and personal car owners.

2. Strategy on development of means of transport

To develop means of transport that can meet transportation needs with structures and types suitable to transport infrastructure, types of cargo and categories of passenger and satisfy technical standards on safety, environmental protection and energy conservation.
a/ Road transport vehicles
– To develop road transport vehicles, prioritizing public transport vehicles and restricting the increase of personal motor vehicles; by 2020, there will be around 45 million road motor vehicles nationwide, including 3.2 – 3.5 million automobiles (of which small cars account for around 57%, passenger cars, 14%, and trucks, 29%); by 2030, there will be under 55 million road motor vehicles nationwide, including 5-6 million automobiles (of which small cars account for around 55%, passenger cars, 18%, and trucks, 27%).
– To develop modem and environment-friendly road transport vehicles; imported, manufactured and assembled cars will satisfy Euro 4 standards by 2017 and Euro 5 standards by 2020. By 2030, environmental technical safety standards will reach the regional advanced level; to increase the use of clean fuels in urban transport so that by 2020, 5-20% of buses and taxis will shift to be powered by LPG, CNG or polar energy.
– To intensify management and control of technical safety and environmental protection conditions of motor vehicles running on the road.
b/ Railway vehicles
– By 2020, to develop modem and fuel-efficient and rational-capacity railway vehicles:
+ To focus on developing modem, fuel-efficient and rational-capacity locomotives; to gradually stop using old and backward locomotives and invest in modem locomotives of 2,000 HP or more; the total number of cargo train locomotives will be 212-239 (with a total capacity of 424,000 – 478,000 HP); the total number of passenger train locomotives will be 63-70 (with a total capacity of 126,000 – 140,000 HP); to rationally distribute the use of locomotives depending on rail infrastructure conditions and sizes of trains;
+ To procure and build new cargo and passenger lightweight carriages with modem and comfort designs; to gradually stop using old and backward heavyweight carriages; to increase the number of container cargo carriages. All passenger carriages must have waste collection systems; by 2020, the total numbers of cargo carriages and passenger carriages will be 9,200- 10,400 and 816-899, respectively.
– By 2030, to develop railway vehicles to reach the regional advanced level with high energy use efficiency and high capacity:
+ To ensure that all passenger and cargo train locomotives will have a capacity of at least 2,000 HP; to gradually increase the number of electric locomotives according to the roadmap for development of high-speed railway transport and urban railways; the total number of cargo train locomotives will be 680-799 (with a total capacity of 1.5 – 1.8 million HP), and that of passenger train locomotives, 195-225 (with a total capacity of 448,000 – 517,000 HP);
+ All passenger and cargo carriages will be lightweight and comfortable and advanced according to regional standards; the total number of cargo carriages will be 28,300-33,300, of which the number of container carriages will account for 15-20%; and the number of passenger carriages will be 2,344-2,703.
c/ Inland waterway transport vessels
– By 2020, the total tonnage of inland waterway cargo transportation vessels will be 26-30 million tons; the total number of inland waterway vessel passenger seats will be around 750,000.
– By 2030, the total tonnage of inland waterway cargo transportation vessels will be 35-42 million tons; the total number of inland waterway vessel passenger seats will be around 890,000.
– Inter-provincial transportation:
+ In the northern region: Tugboats of 1,200-1,600 tons; self-propelled ships of up to 800 tons; self-propelled ships exclusively used for containers of 24-36 TEU; and river-sea ships of up to 3,000 tons;
+ In the southern region: Tugboats of 1,200-1,600 tons; self-propelled ships of up to 1,600 tons; self-propelled ships exclusively used for containers of 36-48 TEU and over 48 TEU; river-sea ships of up to 5,000 tons; ordinary passenger ships of up to 120 seats; and high-speed passenger ships of up to 90 seats.
– Intra-provincial transportation:
+ In the northern region: Self-propelled ships of up to 200 tons; passenger ships of 90- 120 seats; and ships to islands: up to 250 seats;
+ In the southern region: Self-propelled ships of up to 300-500 tons; and ordinary passenger ships of 50-120 seats.
– To enhance the management of technical safety and environmental protection of inland waterway vessels for commercial transportation; to study and promulgate regulations on the useful life of inland waterway vessels; from 2020 on, all inland waterway vessels for commercial cargo and passenger transportation must be registered and comply with regulations on traffic safety and useful life and have waste collection and treatment systems.
d/ Seaway transportation fleet
– By 2020, the total tonnage of the Vietnamese fleet will be 6.8-7.5 million DWT, of which the tonnage of dry cargo ships will be 4.72-5.21 million DWT, that of liquid cargo ships, 1.44-1.58 million DWT, and that of container ships, 0.68-0.72 million DWT.
– By 2030, the total tonnage of the Vietnamese fleet will be 12.61-14.42 million DWT, of which the tonnage of dry cargo ships will be 9.08-10.38 million DWT, that of liquid cargo ships, 2.19-2.7 million DWT, and that of container ships, 1.48-1.63 million DWT.
– Ship sizes:
+ International routes: Bulk ships: 30,000-200,000 DWT; general cargo ships: 5,000-50,000 DWT; liquid cargo ships: 10,000-400,000 DWT; and container ships: 500-12,000 TEU;
+ Domestic routes: Bulk and general cargo ships: 1,000-10,000 DWT; container ships: 200-1,000 TEU; and liquid cargo ships: 1,000-150,000 DWT.
– To increase the management of technical safety and environmental protection of the Vietnamese fleet in accordance with maritime treaties to which Vietnam is a contracting party; from 2020 and beyond, all operating Vietnamese ships must have the age within the useful life and fuel consumption level as prescribed.
dd/ Aircraft fleet
– By 2020, the total number of aircraft will be 190-210, of which the Vietnam Airlines Corporation will have 140-150 aircraft (with 70-80 aircraft owned) and other airlines are expected to have more 50-60 aircraft; the number of short-distance aircraft will be 60-70 (with 30-35 owned), medium-distance aircraft, 30-35 (with 17-20 owned), long-distance aircraft, 20-24 (with 10-12 owned), and cargo aircraft, 8-10 (with 3-5 owned).
– By 2030, Vietnamese airlines will have 230-250 aircraft (with over 50% owned), of which the number of long-distance aircraft will be 25-30 and that of cargo aircraft, 15-20.

3. Strategies for development of transportation businesses

– To complete the restructuring of state-owned transportation businesses through stepping up equitization of and minimizing the number and state holding rate in transportation businesses, except transportation businesses for national defense and security and social security purposes.
– To separate railway infrastructure businesses from transportation businesses into independent businesses and expeditiously equitize transportation businesses and railway transportation support service providers.
– To optimize the sizes of transportation businesses for reducing fixed costs per unit of product (1 ton.km or 1 passenger.km), especially to increase the sizes of road transportation businesses and inland waterway businesses to satisfy transportation business conditions as prescribed.
– To form a number of large multimodal cargo transportation businesses which are capable of conducting complete road-railway-seaway chains, road-waterway-seaway chains or road-airway chains; to increase inter-modal links of transportation services through linking service distribution activities, paying special attention to developing the model of one-stop shop ticket sale for multiple modes of passenger transportation.
– To raise the business administration efficiency of transportation units through renewing their organizational model and intensifying the application of science and technology, especially information technology; to enhance training and retraining of human resources; to take the initiative in cooperating with foreign partners to learn experience and acquire advanced technologies.
– To raise the competitiveness of Vietnamese transportation businesses to maintain the key role in the inbound and outbound passenger transportation market; to ensure the provision capacity of domestic and international cargo transportation service chains with reasonable prices and high quality; to step up investment to develop transportation services and transportation support services overseas.

1. IMPLEMENTATION SOLUTIONS AND POLICIES
2. Improving legal documents and institutions on transportation

– To improve legal documents on transportation activities for enhancing the state management role, clearly defining the state management role and transportation business activities of businesses; to improve and concretize regulations on multimodal transportation business and logistics services in conformity with international practices.
– To complete national-level master plans on multimodal passenger and cargo transportation and on each mode of transportation.
– To improve economic-technical norms on provision of transportation services and transportation support services; as well as processes, regulations and standards on assurance of traffic safety and quality of transportation services and transportation support services.

2. Restructuring and adjusting the order of priority in transport infrastructure investment

a/ Increasing and restructuring sources of capital invested in transport infrastructure
– To prioritize the mobilization of resources for transport infrastructure investment reaching 7-8% of GDP, of which socialized resources will account for 40-50%;
– To focus investment capital on works with spillover effects, ensuring connection of different transportation modes, large economic centers and important transport gateways and hubs;
– To step up investment restructuring, giving priority to investment in large-volume transportation modes such as national railways, urban railways and inland waterways in order to reduce pressure on road transportation;
– To prioritize state budget funds for investment in works for national defense and security and social security purposes and in works which are lowly effective but play the role of ensuring synchrony and connection within the transport infrastructure network; to mobilize to the utmost socialized resources for building works with high business efficiency.
Roads: By 2016, to basically complete the upgrading and expansion of national highway 1A and Ho Chi Minh road (the section running through the Central Highlands).
To concentrate investment on building first a number of expressway sections on the north-south route, radial and belt expressway routes in the Hanoi capital region and Ho Chi Minh City, and routes linking with Noi Bai and Tan Son Nhat international airports.
To expeditiously complete high-capacity roads linking the Cai Mep-Thi Vai port area, seaports in the Hai Phong area, and large inland ports in the Red river and Mekong delta regions; and roads linking ICDs with railway cargo stations, river ports and seaports.
By 2020, to develop roads belonging to two corridors and one belt for economic cooperation between Vietnam and China and the East-West corridor to Laos and Cambodia.
Seaways: To invest in building synchronous and modem seaports under the master plan on Vietnam’s seaport system, giving priority to international gateway ports in key economic regions.
By 2020, to complete the construction of, and put to first-phase operation, the Lach Huyen wharf zone of Hai Phong international gateway port; to organize the effective operation of Cai Mep-Thi Vai international gateway port.
Airways: To further invest in and upgrade infrastructure systems for flight management, runways, airfields and terminals in order to raise the operation efficiency of existing airports, giving priority to the expansion and upgrading of the international airports of Tan Son Nhat, Noi Bai, Cat Bi, Phu Bai, Da Nang and Cam Ranh; to early build Long Thanh international airport, the first phase. To quickly plan and upgrade Chu Lai airport into a cargo transshipment hub for Southeast Asia and the southern region of China.
Railways: To expeditiously build the Yen Vien-Pha Lai-Ha Long-Cai Lan railway route and put it into operation before 2015. To invest in railway sections linking the national railway with Dinh Vu and Cai Mep-Thi Vai ports, large ICDs on major transportation corridors, and large international border gates; and railway transportation safety assurance projects.
To upgrade and build railway routes on major transportation corridors, with priority given to upgrading and modernizing the north-south railway; to build and put to operation urban railways in Hanoi and Ho Chi Minh City; to study and propose an appropriate roadmap for building the north-south express railway.
To concentrate resources on investment in promptly building railway routes linking the national railway with Lach Huyen gateway port.
National inland waterways: To renovate and upgrade infrastructure facilities of national inland waterways in the Red river and Mekong delta regions; the north-south coastal route and transportation routes from the coast to islands; cross-border transportation routes linking with China and Cambodia; and estuaries for river-sea transportation.
b/ Concentrating investment on raising capacity and quality of infrastructure facilities for transportation support services
– To expeditiously implement master plans on ICD networks, giving priority to ICDs which can be linked directly with railways and already have been conveniently linked by road with major seaports and river ports; to complete the building of roadside service stations, firstly those along national highway 1 A, Ho Chi Minh road and key national highways to the northwestern region, the Central Highlands region and the southwestern region.
– To invest in and upgrade passenger railway stations and car stations of grade 2 or higher grade to completely separate the isolated areas for passengers on departure and arrival from the public areas, and separate the flow of passengers on departure and the flow of passengers on arrival; to link the vehicle tracking database with all vehicles registered to operate at stations; to develop software and invest in installing camera systems for vehicle tracking and security and order surveillance in lounges and at gates to passenger embarkation and disembarkation areas.
– To organize convenient transportation connection and arrange points for buses and taxis to embark and disembark passengers, and parking lots for personal cars of passengers within the public areas of railway stations and car stations; to ensure that transportation facilities and equipment are easily accessible to disabled and elderly people at railway passenger stations, passenger car stations, airports and inland waterway wharves; to upgrade wastewater and garbage collection and treatment systems under regulations on environmental protection.
– To expand goods warehouses and yards, container-freight stations (CFS), wastewater, garbage and noise treatment systems at railway cargo stations and major airports, seaports and river ports.

3. Formulating mechanisms to encourage investment in transportation service development

– To improve mechanisms to encourage investment in the development of transportation services, mass transit support services and mass cargo transportation on major transportation corridors, logistics systems, and multimodal transportation service distribution systems, especially investment in renewing means of transportation, business administration technologies, loading and unloading equipment, warehouses and yards, and stations, and in training human resources.
– To prioritize state budget funds for developing transportation services and mass transit support services in major urban centers; passenger and cargo transportation services on major transportation corridors, and routes to the northwestern region, the Central Highlands region, the southwestern region, and islands and archipelagoes in the East Sea.
– To adopt preferential mechanisms for businesses engaged in passenger transportation by bus and urban railway in urban areas and in passenger and cargo transportation by railway and inland waterway on major transportation corridors to build areas for vehicle parking, maintenance and repair workshops and transportation control stations; and for passenger and cargo transportation service providers in the provinces of the northwestern region, the Central Highlands region, the southwestern region, and on islands and archipelagoes in the East Sea.

4. Raising the effectiveness of state management of transportation business

– To intensify training and retraining to raise professional and managerial qualifications and improve foreign language and information technology skills for transportation managers.
– To promote the application of information technology in state management work for monitoring, supervising, making statistics of, and summarizing all information to support the process of decision making in the state management of each type of transportation.
– To encourage transportation businesses to apply new technologies to save energy and reduce environmental pollution in transportation business.
– To review and reorganize transport management and control.
– To assign and delegate more power to localities in performing the state management function, such as carrying out administrative procedures, conducting examination and supervision of, and handling violations in, transportation activities in localities, especially in road and inland waterway transportation services.
– To improve state management mechanisms for transportation business and provision of railway transportation support services through separating the state management function from the business administration function.
– To raise the role of transportation associations in managing the quality and traffic safety of transportation activities; to increase coordination between state management agencies and professional associations in the transportation field.

5. Developing human resources in transportation management and business

– To attach importance to building capacity of transportation training institutions, especially developing professional programs for cadres and civil servants in state management agencies; middle- and high-level managers and transportation controllers and managers in transportation businesses; and pilots, officers, crew members, transportation security forces, air traffic control technicians and maritime pilots.
– To enhance coordination among state management agencies, transportation businesses and training institutions belonging to the national education system outside the transport sector in renovating training curricula and methods, practice, apprenticeship, research and application of science and technology to serve the training of transportation-related occupations and professions.
– To adopt policies to attract highly qualified persons to work in state management agencies; and mechanisms to employ leading scientists and experts at home and abroad in research and formulation of transportation development policies.

6. Enhancing management of traffic safety assurance conditions in transportation business

– To improve regulations on business conditions and grant of business licenses to transportation businesses; to add transportation services to the group of conditional business lines; to supplement regulations on the responsibilities and powers of state management agencies in implementing the regulations on transportation business conditions.
– To improve regulations, processes and technical regulations and define responsibilities of state management agencies and transportation businesses in ensuring technical safety and environmental protection for commercial means of transport, and equipment and machinery for transportation support services.
– To improve regulations on practice conditions of operators of commercial means of transport, responsibilities of transportation businesses and state management agencies in enforcing the practice conditions of workers in road and inland waterway transportation.
– To study and add means of transport on which vehicle tracking devices need to be installed and maintained, especially in road and inland waterway transportation; to define responsibilities of state management agencies and transportation businesses in maintaining, managing and exploiting information from tracking devices to ensure traffic safety.
– To study and add regulations and responsibilities on assurance of conditions, working time and preferential treatment for workers of transportation businesses.
– To step up the institutionalization and organize the implementation of conditions on assurance of security and traffic safety in conventions, international agreements and international transportation agreements to which Vietnam is a contracting party.

7. Enhancing international cooperation in transportation management and business

– To proactively and actively participate in different activities contributing to the development of international transportation organizations of the United Nations such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO).
– To improve and strictly implement transportation commitments to the World Trade Organization (WTO), ASEAN, APEC and other multilateral and bilateral trade agreements.
– To formulate and sign strategic partnership agreements on transport between Vietnam and other countries that have an important role and position in international transportation activities; to take the initiative in negotiating, signing and implementing bilateral and multilateral agreements to open markets and facilitate cross-border and international transportation.
– To adopt policies to encourage world large transportation firms to invest in the establishment of businesses, branches and international transshipment hubs in Vietnam; to adopt incentive mechanisms to encourage Vietnamese businesses to invest in providing transportation services and establishing overseas cargo distribution networks.
Article 2. Organization of implementation

1. The Ministry of Transport shall manage and direct the implementation of this Strategy; update information and supplement the Strategy during implementation to make it suitable to socio-economic and transport infrastructure development conditions of Vietnam; elaborate and approve or submit to competent authorities for approval transportation master plans and plans to comply with this Strategy; formulate, and organize the implementation of, transportation development programs, plans and projects.
2. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Transport in, improving the legal framework on logistics services; and manage the manufacture, building and import of means of transport under regulations.
3. The Ministry of Planning and Investment and the Ministry of Finance shall allocate state budget funds for investment in transport infrastructure development; and study and promulgate incentive mechanisms and policies for transportation businesses.
4. The Ministry of Education and Training shall coordinate with the Ministry of Transport in renewing training curricula to meet human resource development needs of the transport sector.
5. The Ministry of Science and Technology shall coordinate with the Ministry of Transport in researching and experimenting new technologies, new materials and bio-fuel for use in the transportation field; and promulgate more standards on energy conservation for means of transport.
6. Provincial-level People’s Committees shall base themselves on this Strategy to formulate their local transportation development strategies and master plans and implementation plans.

Article 3. This Decision takes effect on the date of its signing.
Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-
 

 
(*) Công Báo Nos 339-340 (20/3/2014)