University of Transport and Communications Institute of Transport Planning and Management

1. University of Transport and CommunicationsInstitute of Transport Planning and Management Expected research needs for innovating intercity transport : Current Discussions in Vietnam Dr.-Ing. Khuat Viet Hung Vice Dean & Head of ITPM Presented at International Conference on Sustainability Science in Asia Bangkok, 24.11.2009 Dr.-IngKhuat Viet Hung

2. Contents Introduction Overviews of Intercity Transport in Vietnam Research Needs Conclusions Dr.-Ing. Khuat Viet Hung

3. Introduction: Vietnam a Country Source: VITRANSS 2 • Located in Southeast Asia • Capital city: Hanoi • Socialist Republic Regime • Population: 85.6 million (2009) • GDP per capita: US$ 1000 • HDI: 105 (2007) • Currency: Vietnam Dong • Language: Vietnamese • Member: UN (1976), ASEAN (1995), APEC (1998), WTO (2007) Dr.-Ing. Khuat Viet Hung

4. The University and the Institute • University of Transport and Communications: • Established in 1945, • Staff: 800 lecturers + 300 administrative staff • Students: 25.000 students (Hanoi Campus = 18,000 ; HCMC Campus = 7000) • Institute of Transport Planning and Management • Establishment: 18 January 2005 • Functions: Education + Research + Consultancy • Staff: 14 academic staff + 5 consultants + 2 administrative staff • Student: 300 (180 in Hanoi + 120 in HCM City) Dr.-Ing. Khuat Viet Hung

5. Overviews of intercity transport in Vietnam Dr.-Ing. Khuat Viet Hung

6. Overview of intercity transport issues • Booming transport demand and Rapid motorization • Fast growth of transport expenditures but still lack of high speed transport infrastructure and service • Big gaps between planned and actual financing implementation • State budget and ODA are still the main source • Successful in enhancing development and improving accessibility of rural and poor people • Successful in improving mobility but not traffic safety • Acceptable transport efficiency except railway and inland water way sub-sector Dr.-Ing. Khuat Viet Hung

7. Transport Demand is growing intensively Between 1999-2008: Passenger growth 5.76%/year, Freight growth 21.12% Rapid motorization: - Extreme High Motorcycle Ownership; Starting car-boom Source: adapted from VITRANSS II Dr.-Ing. Khuat Viet Hung

8. Infrastructure: Lack of capacity + ineffective management 32 National transport corridors North-South Political Axle Road: 202.576 km (17.300 km NR) Railway: 2.362 km (1000 mm gauge) 300 locomotives Airport: 20 (3 International airport) 52 Aircraft Port: 80 (3 Regional gates) 928 vessel (1.8 mil DWT) Inland waterway: 9800 km 8300 boats (3.7 mil. DWT) Source: Ministry of Transport of Vietnam, 2007 Source: VITRANSS II Dr.-Ing. Khuat Viet Hung

9. Transport policies • Infrastructure development policy: • Road based development policies versus a new fever of North-South High Speed Raiwal – Japanese Shinkansen • Focus on new construction other than maintenance; • Lack of prioritization in the development infrastructure • Vehicle policies • Protectionism of domestic vehicle industries but lack of consideration in vehicle quality management • Keeping high access price for individual vehicles • Transport Services • Decentralization process is going fast in road, aviation and water transport services, except the railway. • Heavy budget subsidy is giving to public transport in the big cities while lack of market mechanisms to administer transport services. • Fuel policies • Leaded gasoline was prohibited since 7.2001 • Government kept control of fuel price until the end of 2007 • Lack of consideration to alternative fuels Dr.-Ing. Khuat Viet Hung

10. A new fever: North-South High Speed Railway • Terminals: Hanoi and HCMC • Route length(km): 1,540 • No of Stations: 25 with Average distance between stations of 64km • Maximum Speed: 300km/hour • Travel Time between Hanoi and HCMC: 5h25 min (in case stopping 6 priority stations only) • Investment Cost: US$38 billion excluding rolling stock, contingency and taxes(total cost is approx. US$60 billion) • Government target date: 1.1.2020 • Recommended date: 1.1.2036 Source: VITRANSS II Dr.-Ing. Khuat Viet Hung

11. Future transport issues demanding research activities Dr.-Ing. Khuat Viet Hung

12. Issues of transport researches in Vietnam Political-objective-led studies and activities of transport research society (lack of neutral voice) Infrastructure and constructive domination Infective research and study management system Lack of local resources for scientific researches Disconnection between research institutions and industries and authorities Lack of domestic and international cooperation in study and research activities Low awareness of scientific ethics, copy and intellectual properties right Dr.-Ing Khuat Viet Hung

13. Research Needs Dr.-Ing. Khuat Viet Hung

14. Research needs on inter-city transport in Vietnam • Traffic safety • Driving behaviors: Effective driver and road/boat user training and education; Effective warning and enforcement measures • Infrastructure: Separation of road traffic flows (inter-city and local, two-wheelers and four-wheelers; Motorized vehicles and NMVs): permanently and/or temporarily; Emergency survival solutions • Vehicle: Pro-active vehicle quality control system; Automatic safety support systems in vehicles • Transportation planning • Development and Formalization of transport planning system (vertical hierarchy and horizontal network) • Development an formalization of planning guidelines and tools with regards about the Vietnamese transport conditions • Coordination and Integration between Transport Planning and Land use planning process (functional and institutional) • Planning institutions (structure & procedure; study & Implementation) Dr.-Ing Khuat Viet Hung

15. Research needs on inter-city transport in Vietnam • Logistics • Basic logistics studies: Industry structure, business models; Time, cost, quality of service • Intermodalization of transport service: Institutions (structure and procedure); Market segments and interchanges (services and facilities); Information technology applications • Quality management system of logistics • Transport service quality • Development of applicable quality indicators of: Service access facilities & media; On-board service conditions; Travelling behaviors • Quality management system: Development, Legalize and institutionalize of the QMS => Performance management for authorities and operators Dr.-IngKhuat Viet Hung

16. Research needs on inter-city transport in Vietnam • Financing transport system • Transport pricing: Development and formalization of a transport asset pricing system and procedure; Development and formalization of environmental pricing for transport vehicles • Funding transport: Development and formalization of effective PPP models in infrastructure and service provision; Development and formalization of land-value capture tax scheme • Environmental Impacts of Intercity Transport • Monitoring and assessment of environmental impacts: Quality management system for vehicle inspection process; Development and formalized of CO2 & emission foot-print measurement system for transport and logistics services • Technologies: Adoptions of low-emission alternative fuels and vehicle technologies; Low-emission and noise-reduction infrastructure designs Dr.-Ing Khuat Viet Hung

17. Conclusions and Recommendations Current issues and future challenges are demanding for research in inter-city transport in Vietnam Lack of number and quality of researches on inter-city transport in Vietnam There are needs of researches in all areas of intern-city transport Cooperation and coordination in research are in urgent Connectivity between research institutions and industries and government authorities is necessary International cooperation and Internationalization of research institutions are in urgent Dr.-Ing Khuat Viet Hung

18. Dr.-Ing. Khuat Viet Hung

19. Estimated Demand–Supply Gap by 2030 (Passenger) ◄2030 Situation ► Road (Do Nothing) Air VNR 19 • Road capacity will become insufficient by 2030 in many areas of Vietnam • VNR capacity around Hanoi and HCMCmay fall in short • Airport capacity in Danang will fallin short

20. Estimated Demand–Supply Gap by 2030 (Freight) VNR Port IWT 20 • Freight transport demand for VNR will grow drastically in the future. If no improvement is done for VNR, the demand will shift to road and partially to shipping. • Demand for IWT will increase particularly in the Mekong Delta. • Port capacity in most port groups may be insufficient by 2030