Transport
From The Report: Vietnam 2017
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Occupying a unique position along the Pacific Ocean, Gulf of Thailand and Gulf of Tonkin, along with shared land borders with China, Laos and Cambodia, Vietnam is well-positioned to become a dominant regional transportation centre. Rapid trade, economic and population growth have made transportation upgrades a critical priority for Vietnam. Although many major planned projects face a funding gap which could hamper their timely implementation, recent reforms to the national public-private partnership framework have left the sector well-positioned to capture a larger share of private investment in the coming years. This will be especially critical for major planned highway and aviation projects, where rapid passenger growth has strained existing facilities, lending a sense of urgency to near-term development plans.

This chapter contains interviews with Truong Quang Nghia, Minister of Transport; and Wong Heang Fine, Group CEO, Surbana Jurong.

Articles from this Chapter

Overview

An easy flow: A focus on transportation infrastructure aims to enhance the efficiency of moving goods and travellers
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Occupying a unique position along the Pacific Ocean, Gulf of Thailand and Gulf of Tonkin, along with shared land borders with China, Laos and Cambodia, Vietnam is well-positioned to become a dominant regional transportation centre. However, rapid economic and population growth have led to unprecedented strains on the country’s existing transportation network, and many of its ports, highways and airports are experiencing congestion and capacity constraints after decades of under-investment. In…

Interview

Mobilising investment: Truong Quang Nghia, Minister of Transport, on shaping transport and infrastructure development
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Interview: Truong Quang Nghia What factors lay behind the privatisation of key state-owned enterprises (SOEs)? TROUNG QUANG NGHIA: Restructuring SOEs with a focus on state economic groups and corporations has been identified by the party and the government as one of the three key missions in the process of restructuring and improving the competitiveness of our economy. The Ministry of Transport always pays attention when equitising an SOE and proposing the investment opportunities to both domestic…

Analysis

All aboard: With increased passenger numbers, fleet upgrades and airport facility expansions will ensure everyone gets a seat
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Vietnam’s domestic aviation market has recorded very strong growth in recent years, driven by low-cost carriers (LCCs) that transported 55% of domestic passengers in 2016, according to the Civil Aviation Authority of Vietnam (CAAV). An August 2016 article by VN Express stated that budget airlines have rapidly increased their market share, recording annual growth rates between 15% and 20%. A New Player VietJet Air in particular has recorded significant growth after launching in 2011. VietJet’s…

Interview

Engaging for growth: Wong Heang Fine, Group CEO, Surbana Jurong, on how governments can best create and encourage development
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Interview: Wong Heang Fine What impact do you expect the ASEAN Free Trade Area (FTA) scheme to have on infrastructure development priorities for the region? WONG HEANG FINE: ASEAN countries have similar cultural traits and consumer behaviours, so it is easier for ASEAN companies to export their expertise within the region. Reduced tariffs and preferential tax treatment further facilitate this connection. The FTA’s impact will be crucial; however, it won’t be the main catalyst – economic development…