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study on economic partnership projects

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1.2 Transport Sector in Vietnam<br />

1.2.1 Transportati<strong>on</strong> Sector<br />

Vietnam has a slim topography extending 1,650 km from north to south, and a shoreline<br />

of more than 3,000 km. Its ec<strong>on</strong>omic growth has been driven by the southern ec<strong>on</strong>omic z<strong>on</strong>e around<br />

Ho Chi Minh City (HCMC) and north ec<strong>on</strong>omic area around Hanoi.<br />

Due to the recent ec<strong>on</strong>omic growth, the volume of freight/passenger transportati<strong>on</strong> is<br />

c<strong>on</strong>tinuously increasing al<strong>on</strong>g highways binding Hanoi, urban regi<strong>on</strong> of HCMC, and other<br />

provincial cities such as Hai Ph<strong>on</strong>g and Can Tho. It is also forecasted that the course of the increase<br />

in the future will be further accelerated by the populati<strong>on</strong> growth and increases in income.<br />

On the other hand, development of railways and inland waterway and sea ports, which are<br />

suitable for mass transit of goods and passengers, are comparatively delayed. Existing<br />

transportati<strong>on</strong> system c<strong>on</strong>sists of a road extending to a total of about 220,000 km, a railroad of<br />

about 2,650 km, transportati<strong>on</strong> <strong>on</strong> inland waterway around the H<strong>on</strong>g River and Mek<strong>on</strong>g River, and<br />

coastal and marine transportati<strong>on</strong> with seven large ports including Saig<strong>on</strong> Port and Hai Ph<strong>on</strong>g Port.<br />

In 2005, 65% of goods (by weight) were transported by road, 22% by waterway, 10% by<br />

coastal shipping, and 2.7% by railways. Meanwhile, 13.9% of passengers were transported by road,<br />

5.9% by inland waterway, 76.3% by coastal shipping, 3.6% by railways and 0.3% by airplane. It is<br />

noted that road plays a major role in goods transportati<strong>on</strong>.<br />

Internati<strong>on</strong>al ec<strong>on</strong>omic integrati<strong>on</strong> will be promoted, for example, by ASEAN Free Trade<br />

Area (AFTA). Accordingly, industrial competitive power should be reinforced in order to keep a<br />

stable ec<strong>on</strong>omic growth. It will be necessary to develop a distributi<strong>on</strong> system through<br />

large-scaling/speeding-up of freight/passenger transportati<strong>on</strong> by focusing <strong>on</strong> harbors/airports, which<br />

are the doorways of transportati<strong>on</strong>. In additi<strong>on</strong>, the poverty groups are c<strong>on</strong>centrated in farm villages<br />

located in remote areas without smooth transportati<strong>on</strong> system. Development of rural roads is<br />

necessary to promote agricultural development and village industrializati<strong>on</strong>, in order to achieve<br />

income increase and social stability of the regi<strong>on</strong>s.<br />

In additi<strong>on</strong>, Vietnam is located at the east entrance of the Greater Mek<strong>on</strong>g Subregi<strong>on</strong><br />

(GMS) which has high potential for agricultural products in the world. In this regard, development<br />

of transportati<strong>on</strong> means in this regi<strong>on</strong> shall be given higher priority (Extracted from JBIC Country<br />

Strategy and Program 2006, translated in this Study).<br />

1-2

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