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“A Vision for Transportation Infrastructure: $200 Billion Transformation by 2030”

22 August, 2024

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Vietnam’s transportation infrastructure plans for the upcoming period have been strategically designed with a focus on investing in projects with a wide-reaching impact, connecting various sectors and regions to boost socio-economic development.

Injecting Massive Capital into Railway Development

According to Mr. Luu Quang Thin, Deputy Director of the Planning and Investment Department (Ministry of Transport), Vietnam’s transportation infrastructure has made remarkable progress. The country now boasts over 24,300 km of national highways, 2,000 km of expressways, 6,800 km of inland waterways, 2,640 km of national railways, 298 ports, 22 airports, and numerous large-scale, important projects.

However, Mr. Thin acknowledged that there are still imbalances in infrastructure development, with a predominant focus on road projects, followed by maritime, aviation, and inland waterways.

For instance, the railway system, despite its many advantages, has not received prioritized investment and remains outdated. The slow progress of urban railways has also failed to alleviate traffic congestion and environmental pollution in major cities. Additionally, the potential of inland waterways in advantageous areas has not been fully harnessed.

Mr. Thin attributed these challenges mainly to Vietnam’s low economic starting point and insufficient capital for infrastructure development.

Setting Direction for Transportation Infrastructure Development until 2030, with a Vision towards 2050

The leader of the Planning and Investment Department emphasized the goal of developing a rational transportation infrastructure system, ensuring balance and harmony. This involves leveraging the strengths of different transport modes and increasing the proportion of public passenger transport in major cities.

For road transport, the target for 2030 is to have approximately 5,000 km of expressways nationwide. The focus will be on investing in expressways connecting major economic centers, seaports, international airports, and border gates with high cargo demand. The estimated investment for these projects is around $24.8 billion by 2030 and $33.64 billion by 2050.

Recognizing the advantages of railways in terms of bulk transportation, speed, safety, convenience, and environmental friendliness, Mr. Thin stated that this mode will be a priority for investment. The Ministry of Transport is concentrating on constructing the high-speed North-South railway and accelerating the progress of urban railways in Hanoi and Ho Chi Minh City. These efforts aim to reduce traffic congestion and connect with the high-speed railway to form a convenient passenger transport network nationwide. Additionally, new railway lines will be electrified to link important seaports and airports, and existing railway lines will be upgraded with synchronized infrastructure. The estimated investment for railway projects is approximately $151.2 billion by 2030 (including urban railways) and $312 billion by 2050.

The Ministry of Transport will expedite the investment in urban railways in Hanoi. (Photo: Hoai Nam/Vietnam+)

In the field of inland waterways, the focus is on upgrading and modernizing main routes with high traffic density. There are also plans to develop coastal shipping routes in the Central region and the Mekong Delta, along with modernizing major and specialized ports. The estimated investment for these projects is around $10.8 billion by 2030 and $4.48 billion by 2050.

In the maritime sector, the goal is to upgrade important maritime routes, further develop the international gateway ports of Lach Huyen and Ba Ria-Vung Tau, and attract investment for Can Gio and Van Phong ports, as well as Tran De port to serve the Mekong Delta. The estimated investment for these projects is approximately $4.16 billion by 2030 and $6.65 billion by 2050.

Regarding aviation, the Ministry of Transport aims to prioritize investing in several large airports that serve as hubs in the Hanoi and Ho Chi Minh City regions. They will also gradually upgrade and efficiently operate the existing 22 airports and attract investment for new airports. The estimated investment for aviation projects is around $17.1 billion by 2030 and $21.06 billion by 2050.

Mobilizing Diverse Capital Sources for Infrastructure Development

To turn these plans into reality, the Planning and Investment Department has proposed key solutions to mobilize resources and attract capital for transportation infrastructure development.

Specifically, the Ministry of Transport will continue to review, amend, and improve the legal framework related to transportation infrastructure development. They will also simplify administrative procedures to enhance the investment environment and empower local authorities by decentralizing and delegating certain decision-making powers. Additionally, the Ministry will prioritize allocating the state budget to transportation projects that cannot recover capital or have difficulty attracting investment from other economic sectors.

The Ministry is also committed to attracting investment from all economic components for infrastructure development, offering maximum investment incentives. They will continue to effectively utilize Official Development Assistance (ODA) and preferential loans from international donors for large-scale, impactful projects. Furthermore, the Ministry will explore ways to capitalize on the value of existing infrastructure assets and develop mechanisms to mobilize resources that are competitive internationally, considering the specific characteristics of each transportation sector.

The Ministry of Transport will mobilize capital sources and policy mechanisms to attract investment in transportation infrastructure. (Photo: Viet Hung/Vietnam+)

In parallel, the Ministry will publish a list of infrastructure development projects to attract investment through Public-Private Partnerships (PPP) and foreign investment until 2030 and beyond.

Viet Hung