DECISION No. 202/1999/QD-TTg OF OCTOBER 12, 1999 APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM'S SEAPORT SYSTEM TILL THE YEAR 2010

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Considering the proposal of the Ministry of Communications and Transport (Official Dispatches No. 145/KHDT of January 16, 1997, No. 680/KHDT of March 14, 1998 and No. 3007/GTVT-KHDT of September 3, 1999) and the evaluation opinion of the State Council for Evaluation of Investment Projects (Official Dispatches No. 4848/HDTD of July 14, 1998 and No. 77/TDNN of July 24, 1999),

DECIDES:

Article 1 .- To approve the master plan on the development of Vietnam's seaport system till the year 2010 with the following principal contents:

1. Objectives of the master plan

- The overall objective: To serve as the basis for the construction and development of the seaport system of Vietnam according to a national overall and uniform planning; for the establishment of communications and transport infrastructures-linking centers in different regions and particularly in key economic regions; for the creation of seaport technical and material bases, in order to promote the economic development and, at the same time, to confirm to the region and the world the position and advantages of the country's marine economics, and create important hubs for economic exchange between the country and foreign countries.

- Specific objectives:

+ To plan the development of Vietnam's seaport system so as to meet the requirements of national industrialization and modernization on the basis of maritime technological and scientific advances in terms of scale, facilities and equipment, technological line and managerial system with a view to step by step enabling our country to integrate and compete in the field of seaport activities with the countries in the region and the world.

+ The seaport system of Vietnam will ensure the handling of the whole volume of goods imported and exported by sea to meet the requirements of the growth of the national economy, with the expected capacity of around 106 million tons/year by the year 2003 and 200 million tons/year by the year 2010.

+ The seaport system of Vietnam will be planned and distributed all over the country at the locations where exist conditions and demands for the construction of seaports, in order to tap the natural advantages, make full use of the potential of sea shipping, well serve the economic zones and industrial parks, and save up investment expenditures and port exploitation expenditures.

2. Orientations for planning the development of Vietnam's seaport system

- Improving, upgrading and modernizing the exis-ting seaports, bringing into full play the natural conditions and available facilities in order to make rational investment in and efficiently exploit the port system.

- Concentrating on the construction of a number of integrated ports which will play the major role in key economic zones to accommodate ships of large tonnage (over 30,000 DWT). Placing emphasis on ports or wharves used exclusively for goods in containers, bulky goods and liquid goods, and on international entrepot ports.

- Prioritizing the construction of a number of ports in different localities on the basis of carefully considering their investment efficiency, making sure that their functions and scale be suitable to the level of the local economic development and capital mobilization capability.

- Together with the development of ports, attention should be paid to the synchronous development of maritime services and related infrastructures in order to raise the ports? servicing capability and investment efficiency.

- In investing in the development as well as exploitation of seaports, it is necessary to closely combine the economic development requirements with the national defense requirements.

3. The master plan on the development of Vietnam's seaport system till the year 2010

The seaport system of Vietnam by the year 2010 shall consist of 8 groups:

- Group 1: The group of seaports in Northern Vietnam, including those from Quang Ninh to Ninh Binh.

- Group 2: The group of seaports in northern Central Vietnam, including those from Thanh Hoa to Ha Tinh.

- Group 3: The group of seaports in central Central Vietnam, including those from Quang Binh to Quang Ngai.

- Group 4: The group of seaports in southern Central Vietnam, including those from Binh Dinh to Binh Thuan.

- Group 5: The group of seaports of Ho Chi Minh city, Dong Nai and Ba Ria-Vung Tau.

- Group 6: The group of Mekong River Delta seaports.

- Group 7: The group of seaports of islands in western South Vietnam.

- Group 8: The group of seaports of Con Dao.

In each of the above-mentioned groups of seaports there will be integrated and specialized seaports (coastal ports, floating ports, anchorages in navigational areas and dry docks); the functions and tasks of each group of seaports shall be as proposed by the Ministry of Communications and Transport in Document No. 680/KHDT of March 14, 1998.

The seaports included in the master plan are listed in the appendix attached to this Decision.

4. Potential ports

The master plan identifies a list of potential ports which are expected to be developed largely after the year 2010, it is necessary to reserve an appropriate land fund for their construction.

For potential ports, depending on the demand and capability of investment implementation, the Ministry of Communications and Transport shall study and submit a list of such ports to the Prime Minister for consideration and approval.

Article 2.- Management of the master plan on the seaport system

1. The Ministry of Communications and Transport as a specialized State management agency shall, through the Vietnam Maritime Bureau, be answerable to the Prime Minister for managing the approved master plan on the seaport system development.

2. To assign the Ministry of Communications and Transport to decide specific adjustments of ports, which must not be contrary to the functions and scopes of seaport groups in the approved master plan.

- If it is necessary to supplement or adjust the approved master plan, the Vietnam Maritime Bureau shall study and report such to the Minister of Communications and Transport for submission to the Prime Minister for consideration and decision.

3. To assign the Ministry of Communications and Transport to draw up the detailed plans on seaport groups 1, 3, 5 and 6 and submit them to the Prime Minister for approval.

To assign the Ministry of Communications and Transport to approve the detailed plans of the rest of seaport groups.

4. To assign the Ministry of Communications and Transport to work out a mechanism for generating investment capital sources for the development of seaports and their infrastructures, submit it to the Government for approval in the direction that the State shall exercise unified management of seaport infrastructures, enterprises shall be hired to exploit seaports and pay charges so as to ensure the source of revenues for capital investors in such seaports as well as the source of exclusive revenues of the State, which shall be reinvested in developing the port system and seaport infrastructure according to the approved master plan.

5. To assign the People's Committees of the provinces and centrally-run cities and the General Land Administration to strictly manage the land fund as prescribed by law in order to meet the requirements of development and construction of the seaport system according to the master plan.

6. To assign the Ministry of Communications and Transport to coordinate with the People's Committees of the provinces and centrally-run cities and the concerned ministries and branches in organizing the construction of the communications network leading to ports: land roads, railways, riverways and sea routes, in order to synchronously exploit the seaports and raise their handling capacity.

Article 3 .- Deployment of the implementation of the master plan

1. To assign the Ministry of Communications and Transport to direct, on the basis of the approved master plan on the development of the seaport system of Vietnam till the year 2010, the Vietnam Maritime Bureau to elaborate the development investment plan for each period suitable to the socio-economic development requirements.

2. From now till the year 2003, investment shall be concentrated on the following 10 key ports:

- The Cai Lan integrated port.

- The Hai Phong integrated port.

- The Cua Lo integrated port.

- The Da Nang integrated port (Tien Sa - Han River).

- The port exclusively used for the Dung Quat industrial park.

- The Quy Nhon integrated port.

- The Nha Trang integrated port.

- The Thi Vai integrated port.

- The Sai Gon integrated port.

- The Can Tho integrated port.

3. Sources of investment capital: To mobilize domestic and foreign sources of capital, including State budget capital, ODA loan capital, and investment capital in the forms of joint ventures, BOT contracts, and other capital sources.

The key ports shall have priority in receiving State capital for investment, ensuring the leading role of the State in managing the exploitation of the port system.

To permit the branches, localities and domestic enterprises to invest their own capital or through joint ventures with foreign parties in other ports in conformity with the master plan.

4. The order of investment in construction of ports shall comply with the provisions in the Regulation on the Management of Maritime Activities at Seaports and Maritime Areas in Vietnam issued together with the Government's Decree No. 13-CP of February 25, 1994 and the Regulation on Investment and Construction Management issued together with the Government's Decree No. 52/1999/ND-CP of July 8, 1999 and other relevant regulations.

Article 4 .- This Decision takes effect 15 days after its signing.

Article 5 .- The ministers, the heads of the concerned ministerial-level agencies and agencies attached to the Government, the presidents of the People's Committees of the provinces and centrally-run cities and the Director of the Vietnam Maritime Bureau shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

APPENDIX:

LIST OF SEAPORTS IN THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM'S SEAPORT SYSTEM TILL THE YEAR 2010

(Issued together with Decision No. 202/1999/QD-TTg of October 12, 1999)

Serial No	NAMES OF PORTS	CURRENT STATUS		DEVELOPMENT PLAN						REMARKS
		Being operational	Size of ships able to enter the port (DWT)	CLASSIFICATION		BY THE YEAR 2003		BY THE YEAR 2010
				Integrated ports	Specialized ports	Expected port capacity (in million tons)	Expected size of ships able to enter the port (DWT)	Expected port capacity (in million tons)	Expected size of ships able to enter the port (DWT)
1	2	3	4	5	6	7	8	9	10	11
I	GROUP OF NORTHERN VIETNAM SEAPORTS
1	Mui Chua port			x		0.1-0.2	1,000	0.2	2-3,000
2	Cua Ong port	x			Coal	4.0-4.1	30,000	5.0-5.2	50,000
3	Cam Pha port			x	Steel			4.0-5.0	30-50,000
4	Hon Gai coal port (Cau Trang)	x	15,000		Coal	1.0-1.2	15,000	1.8-2.0	5,000	The coal port shall be moved to Cau Trang, Hon Gai port shall be transformed into a passenger one
5	Hoanh Bo port				Cement	1.2-1.4	20,000	3.5-3.8	20,000
6	Cai Lan port			*		1.8-2.8	40,000	16.0-17.0	50,000
7	B12 Oil port	x	30,000		Oil	1.5-2.0	30,000	3.0-3.5	30,000	To be moved to a new location
8	Dien Cong	x	5,000		Coal	0.3	5,000	0.3-0.4	5,000
9	Hai Phong port (Hoang Dieu, Vat Cach, Chua Ve)	x		*		6.2	10,000	8.0-8.5	10,000
10	Cua Cam	x	5,000			0.4	5,000	0.8	5,000
11	Northern Container Company port			x		0.5-0.6	10,000	1.0	10,000
12	Hai Phong port (Dinh Vu area)			x				2.5-6.0	10,000
13	Dinh Vu Industrial Park port				IP			2.0-6.5	10,000
14	Dinh Vu joint venture oil port				Oil products			-	10,000	To be concretized in the detailed seaport group plan
15	Thuong Ly port	x	3,000		Oil	0.3	3,000	0.3	3,000
16	16 Joint venture gas, petroleum and oil ports (Dai Hai, Total, Petex, Thang Long)	x	5,000		GAS, Petroleum, Oil	0.3	5-10,000	0.4-0.5	5-10,000
17	Caltex-Vietnam joint venture port	x	1,000		Tar		5,000	-	5,000
18	Bach Dang port			x				2.5	10,000	To be concretized in the detailed seaport group plan
19	Cement port (Chinfon cement and Hai Phong cement)	x	5,000		Cement	2.2-2.4	5,000	2.4-2.6	5,000
20	Transvina joint venture port			x		0.3-0.4	10,000	0.3-0.4	10,000
21	128 naval flotilla port	x	3,000	x		In service of national defense	3-5,000	In service of national defense and economy	3-5,000
22	Dong Hai industrial park port			x			10,000		10,000	To be concretized in the detailed seaport group plan
23	Diem Dien port	x	600	x		0.1-0.2	600	0.2-0.3	600
24	Hai Thinh port Potential ports + Ports of the Bach Dang river + Ports of the Chanh river	x	1,000	x x	Oil	0.3-0.4	1,000	0.5-0.6	2,000
25
II	GROUP OF NORTHERN CENTRAL VIETNAM SEAPORTS
25	Le Mon port	x	1,000	x		0.3-0.4	1,000	0.6-0.7	1,000
26	Nghi Son port				Cement	1.2-1.5	30,000	2.5	30,000
27	Nghe Tinh (Cua Lo-Ben Thuy)	x	10,000	*		1.4-2.0	10,000	2.9-3.5	10,000
28	Nghi Huong Oil port	x	3-5,000		Oil	0.2-0.3	10,000		10,000
29	Hung Hoa Oil port	x	1,000		Oil		1,200		1,200
30	Xuan Hai	x	2,000	x		0.1-0.2	1,000	0.3-0.5	1,000
31	Vung Ang port Potential ports: + Nghi Son port + Thach Khe port Iron ore + Hon La port Integrated			*	Oil Iron ore integrated
III	GROUP OF CENTRAL CENTRAL VIETNAM SEAPORTS
32	Quang Binh port (area of Gianh port, Nhat Le)	x	1,000	x		0.2-0.3	1,000	0.3-0.4	1,000
33	Gianh river petroleum and oil port	x	400-600		Oil	0.1	1,000	0.1-0.2	1,000
34	Cua Viet port	x	400-600	x		0.1-0.2	1,000	0.1-0.2	1,000
35	Thuan An port	x	600	x		0.2	1,000	0.2	2,000
36	Thuan An petroleum and oil port	x	400-600		Oil	0.1-0.2	1,000	0.2-0.3	2,000
37	Chan May port			*		0.4-0.5	30,000	2.2-2.3	50,000
38	Da Nang port +Tien Sa-Han river +Lien Chieu area	x	15,000	*		2.2-2.4	10-30,000	3.6-3.9 8.0-8.5	30,000 50,000
39	234 port (fifth military zone)	x	2-3,000	x		0.2-03	3,.000	0.3-0.4	2-3,000
40	Da Nang sea shipping company port	x	3,000	x			3,000		3,000
41	Petroleum & oil port in Da Nang area +My Khe +Nai Hien +Lien Chieu	x x x	30,000 1-3,000 7,000		Oil Oil Oil	0.5 0.1-0.2 0.1	30,000 3,000 7,000	0.8-1.0 0.1-0.2 0.1	30,000 3,000 7,000	To be moved to a new location
42	Hai Van port	x			Cement	0.5-0.6	5,000	0.5-0.6	10,000
43	Ky Ha port (for dismantlement old ships, liquefied gas, integrated	x		x		0.2-0.3	3-5,000	0.4-0.5	3-10,000	Permitted to be used as an integrated iron and steel port
44	Sa Ky port		x
45	Dung Quat port +Petrochemicals refinery area +Area for assorted goods +Area for bulky goods +Oil and gas services Potential ports + Nam O port		* *		0.2-0.3	10,000	2.0-2.5	30,000 50,000 10,000
IV	GROUP OF SOUTHERN CENTRAL VIETNAM SEAPORTS
46	Quy Nhon port +Existing Quy Nhon area +Nhon Hoi area	x	10,000	* * x		1.1-1.3	10,000	1.3 2.0	10,000 30,000
47	Quy Nhon petroleum and oil port		3,000		Oil	0.2	10,000	0.5-0.8	10,000
48	Thi Nai port	x	5,000	x		0.2	5,000	0.4-0.6	5,000
49	Vung Ro port	x		x	Petroleum and oil	0.1	5,000	0.4-0.6	10,000	Petroleum and oil and integrated port
50	Hon Khoi port	x	600		Salt	0.1	600	0.1-0.2	600
51	Nha Trang port	x	10,000	*		0.6-0.7	20,000	0.8-1.0	20,000
52	Ba Ngoi port	x		*		0.1-0.2	15,000	0.3-0.4	10,000
53	Mui Chut port	x	5,000		Oil	0.2-0.3	10,000	0.7-0.8	10,000
54	Phu Quy port (sea products and service of the island district)	x		x		-	1,000	-	1-2,000	To be concretized in the detailed seaport group plan
55	Dam Mon port Potential ports +Van Phong International Transshipment port (Khanh Hoa) +Mui Ne port	x	30,000		Sand Bulky ore	0.1-0.2	30,000	0.2	30,000
V	GROUP OF SEAPORTS OF HO CHI MINH CITY – DONG NAI AND BA RIA-VUNG TAU
	Ho Chi Minh City area
56	Sai Gon port (Nha Rong, Khanh Hoi, Tan Thuan area)	x	15-20,000	*		8.5-9.5	20-25,000	9.0-10.0	25-30,000
57	Nha Be area port			x		-		2.5-3.5	25-30,000
58	Vietxo Lighter port	x	10,000	x		0.3-0.4	10,000	0.3-0.4	10,000
59	Ben Nghe port	x	15,000	*		1.5-1.6	20,000	2.1-2.3	20,000
60	Southern Riverways Corporation port			x		-	10,000	-	10,000	To be concretized in the detailed seaport group plan
61	Vietnam International Container Terminal	x		x		0.6-0.8	20,000	1.4-1.5	20,000
62	ELF Gas port	x	5,000		Gas	0.05-0.1	5,000	0.1	10,000
63	Tan Thuan Export Processing zone port					1.0	20,000	2.0	20,000	To be concretized in the detailed seaport group plan
64	Tan Thuan Dong vegetables and fuit port	x	10,000	x		0.4-0.5	15,000	0.4-0.5	15,000
65	Lotus Port	x		x		0.2-0.3	10,000	0.2-0.3	10,000
66	New port (Tan Cang & Cat Lai)	x	10,000	x		3.6-4.3	10-15,000	3.0-3.5	10-15,000
67	Vegetable Oil port	x	10,000	x	Vegetable oil	0.5-0.6	15,000	1.0-1.2	20,000
68	Nha Be Petrol and oil port	x	25,000		Oil	3.0	25,000	4.5	25,000
69	Petechim Petrol and oil port				Oil	0.5-0.6	25,000	4.5	25,000
70	Petec Petrol and oil port	x	25,000		Oil	0.6	25,000	1.0	25,000
71	Saigon Petro petrol and oil port	x	25,000		Oil	0.6	25,000	1.0	25,000
72	VITAICO port	x	20,000		Wood chips	0.2	25,000	0.2-0.3	25,000
73	Phu Dong joint venture company port	x			Wood chips	0.2	25,000	0.2-0.4	25,000
74	Phuoc Khanh port	x			Wood chips	0.1-0.2	25,000	0.2-0.3	25,000
75	Sao Mai port (Cat Lai)	x	10,000		Cement	0.5-1.0	15,000	2.2	15,000
76	Hiep Phuoc area ports +Oil port of the power plant +Nghi Son cement port +Hiep Phuoc Industrial Park port +Other portsPotential ports +Hiep Phuoc Integrated port +Phuoc Luong, Cat Lai port +Can Gio port				Oil Cement	2.0-2.5	20,000	6.0-7.0	25,000
	Ports of Ba Ria-Vung Tau and Dong Nai area
77	Dong Nai port	x	1,000	x			1-2,000		1-2,000
78	Dong Nai Gas port (SCTGAS and VT.GAS)
79	Phuoc Thai port (Ve Dan)	x	5,000			0.4	5-10,000	1.0-1.5	10-15,000
80	Go Dau A port	x	2,000	x		0.2-0.3	5-10,000	0.8-1.0	15,000
81	Long Thanh port	x	2,000		Fertilizer	0.2-0.3	3-5,000	0.3	3-5,000
82	Gas PVC port (unique gas)	x	5,000		Gas	0.1	5,000	0.1-0.2	5,000
83	Go Dau B	x		*		-	5-10,000	3.0-4.0	15,000
84	Go Dau C			x				0.8-1.0	15,000
85	Oil port of the Phu My power plant	x			Oil	0.4-0.6	10,000	1.0-1.2	10,000
86	Ports in joint venture with foreign partners + Integrated port + Thi Vai joint venture port			x x		- 0.5-0.6	- 30,000	6.0-6.5 3.0	30,000 30,000	1,300 m long Vung Tau Ship - Vinakoei - VSC joint venture (660 m long)
87	Baria Serece port	x	30,000	x		0.3-0.4	30,000	2.0-3.0	30,000
88	Chemicals port + Port of the power and nitrogenous fertilizer factory +Methanol factory port			x x		- -		1.0-1.5 1.0-1.5	30,000 30,000
89	Cement port (Chinfon)				Cement	1.0-1.2	20,000	3.5-4.0	20,000	To be concretiz in the seaport group plan
90	Thi Vai integrated port			*		0.5-0.6	30,000	6.5-10	30,000	2000m Long
91	Cai Mep vinafood port			x	Food and Foodstuff	0.3-0.3	30,000	1.5-2.5	30,000
92	Cai Mep container port			x			30-50,000	3.5-4.0	30-50,000
93	PVC factory port				SF Liquified gas		30-50,000		30-50,000
94	Cai Mep Oil port +PLG port (Vietnam Petro) +Saigon Petrol port +Petec port				Oil and gas Oil and gas Oil and gas	8.0-1.0 0.8-1.0 0.8-1.0	30-50,000 30-50,000 30-50,000	3.5-4.5 3.5-4.5 3.5-4.5	50,000 50,000 50,000
95	Long Son zone port				Oil products			10.0-11.0	30,000
96	Cat Lo port	x	5,000	x		0.2-0.3	5,000	0.8-1.0	10,000
97	PTSC port	x	10,000		In service of oil and gas	-	10,000	-	10,000
98	VietsoPetro port	x	5-10,000		In service of oil and gas	-	10,000	-	10,000
99	K2 Oil port Potential ports +Ports of the Cai Mep rivermouth Container port Hoan Nguyen steel +Phuoc An +Vung Tau integrated port	x	3,000	x x	Oil	0.2	3,000	0.3-0.4 30 terminals - -	7,000 15-55,000	At Ben Dinh-Sao Mai
VI	GROUP OF MEKONG RIVER DELTA SEAPORTS
100	Can Tho port (including the existing Hoang Dieu, Tra Noc and constructing new Cai cui)	x	5,000	*		2.0-2.5	5-10,000	3.5-4.5	10,000	To be concretiz in the seaport group plan
101	Can Tho oil and gas ports					-	5,000	0.5-1.0	5,000	Including Mekong Gas-Petrolimex
102	Cao Lanh-Sa Dec port	x	2,000	x		0.3	3,000	0.3-0.4	5,000
103	Vinh Thai port	x	2,500	x		0.2-0.3	2,000	0.4-0.5	2,000
104	My Thoi port	x	3,000	x		0.3	5,000	0.5-0.6	5,000
105	My Tho port	x	2,500	x		0.3-0.4	3,000	0.6-0.7	5,000
106	Viet Nguyen port				x	-	5,000	-	5,000
107	Hon Chong port	x	1,000	x		0.1-0.2	1,000	0.3	2,000
108	Nam Can port	x	<2,000	x		0.1	1,000	0.2-0.3	2,000
109	Long An (Soai Rap river)			x		0.3	5-10,000	0.4-0.5	5-20,000
110	Dai Ngai port			x		0.2	5,000	0.4-0.5	5,000
111	Tra Cu port			x				0.2-0.3	5,000
112	Binh Tri port	x	10,000		Cement	1.7	10,000	1.8-2.0	10,000
VII	GROUP OF SEAPORTS OF WESTERN SOUTHERN ISLANDS
113	An Thoi and Duong Dong floating ports (Phu Quoc) Potential port +Hon Thom port					2 wharves	60,000	2 wharves	60,000
VIII	GROUP OF CON DAO SEAPORTS
114	Ben Dam port Potential port +Con Dao port	x		x		-	2,000	-	2,000

Notes:

1. Volume of goods handled: 1995: 34,000,000 tons; 1996: 39,800,000 tons; 1997: 45,763,000 tons; 1998: 53,571,000 tons; - The goods volume increases 16.35% annually on average.

2. In the master plan on Vietnam's seaport system till the year 2010 there are also floating ports in service of goods loading and unloading, service ports in service of Vietnam's ship industry, and offshore floating ports in service of oil and gas exploitation and export.

3. Mark "*" implies key integrated ports of the seaport groups in the master plan