GMS transport projects make Vietnam better connected

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Hanoi - Lao Cai expressway, the longest of its kind in Vietnam, was put into operation in September 2014 as part of the North – South Economic Corridor (NSEC)

Vietnam is the only country in the GMS that has participated in all three economic corridors. They include the north-south corridor that connects Vietnam with China, the east-west to link Thua Thien-Hue province and Da Nang city in the central region with Laos and all the way to Thailand and Myanmar and finally the southern one bridging HCM City with Phnom Penh and Bangkok.

According to Vietnamese Deputy Minister of Transport Le Dinh Tho, with financial aid from sponsors, especially the Asian Development Bank (ADB), and concerted efforts, Vietnam has been completing works within these important connectivity corridors. Connecting with China, Vietnam put the Kunming – Lao Cai – Hanoi – Hai Phong expressway into use in December 2015.

Notably, the Hanoi – Lao Cai expressway with a total length of 264 km and investment of US$1.2 billion sourced from the ADB was considered a strategic part of the Kunming – Lao Cai – Hanoi – Hai Phong road corridor under the cooperation programme between the six GMS countries, namely Vietnam, Laos, Cambodia, Thailand, Myanmar and China. 

The expressway, the longest of its kind in Vietnam, was put into operation in September 2014 as part of the North – South Economic Corridor (NSEC), helping reduce travel time between Hanoi and the northern border province of Lao Cai from seven to three hours and facilitating the transport of goods.

It is not only important to Vietnam but also the whole GMS region by changing the economic panorama of localities in northern Vietnam and southern China through enhancing transport connectivity, trade exchanges, investment and tourism cooperation.

The Nanning – Lang Son – Hanoi – Hai Phong and Hai Phong – Ha Long – Van Don – Mong Cai – Pingxiang expressways are set to become operational before 2020. 

The East-West Economic Corridor (EWEC) features Da Nang Port – Dong Ha (along National Road No.1) – Lao Bao International Border Gate – National Road No. 9 of Laos – Thailand – Dawai Port of Myanmar route with a total length of 1,450 km. This is an important corridor that helps shorten road travel time from the Pacific Ocean to the Indian Ocean to three hours.

Another route in the east-west corridor running along National Road 217, funded by the ADB, will be completed soon.

On the basis of the east-west corridor linking the Pacific Ocean and the Indian Ocean, Vietnam and Laos have put forth an initiative to build another corridor from Myanmar to Laos via Thailand, running along Paksan (Laos) – Thanh Thuy International Border Gate – Vinh (Vietnam’s Nghe An province) section to Vung Ang Port in the central province of Ha Tinh. It is a branch of the Hanoi – Vientiane expressway. 

To connect with Cambodia, the Southern Economic Corridor (Southern Coastal Corridor - SCC) has been built with the ADB’s support. Vietnam and Cambodia have signed an agreement on accelerating the construction of the 180-km Ho Chi Minh City – Phnom Penh expressway. The route runs from Ho Chi Minh City through Cai Mep – Thi Vai Port to Phnom Penh and then to Thailand before joining the SCC.

Transport infrastructure development a priority of Vietnam

Addressing a session on infrastructure development and financing as part of the GMS Business Summit in Hanoi on March 30, Vietnamese Minister of Transport Nguyen Van The said infrastructure plays an important role in socio-economic development of a nation and infrastructure development is a priority of many developing countries, including Vietnam.

Vietnamese Minister of Transport Nguyen Van The addresses a session on infrastructure development and financing as part of the GMS Business Summit in Hanoi on March 30.

In recent years, the Vietnamese Government has spent about 9%-10% of its annual GDP on transport, energy, telecommunications and water infrastructure, he said.

However, the transport infrastructure system in Vietnam is still small in terms of scale with asynchronous connections. The country has only 756 kilometres of expressway while the railway system is out-of-date. 

According to the minister, Vietnam plans to step up development of high-quality transport infrastructure to spur its socio-economic growth.  It will continue completing its expressway system. Between now and 2020, the country expects to finish construction of about 654 kilometres out of 1,300 kilometres of the north-south expressway in the form of public-private partnership (PPP).

It also considers the building of new roads and high-speed railways to get connected with ASEAN, GMS and trans-Asia road systems, while paying attention to airport development, including the construction of Long Thanh International Airport with annual capacity of 100 million passengers and 5 million tonnes of cargo in the southern province of Dong Nai, The said.

He revealed that Vietnam needs an estimated VND1,015 quadrillion (US$44.7 billion) in investment to develop transport infrastructure in the 2018-2023 period. 

Of the total, VND651 trillion is for road development, VND119 trillion for railways, VND101 trillion for air transport, VND68 trillion for sea routes and more than VND33 trillion for inland waterways.

About VND300 trillion (US$14 billion) is expected to come from non-budget sources inside and outside the country, especially foreign investment.

Therefore, Vietnam calls on businesses, investors and development partners to invest in developing transport infrastructure in Vietnam as well as other GMS nations, thus turning the GMS into a prosperous and developed sub-region, The stressed.