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VIETNAM INFRASTRUCTURE DEVELOPMENT IN HO CHI MINH CITY

MAY 2009

This document has been prepared by a team composed by Nam Tran Quang (parts II, III, IV, V and VI), Giang Van Nguyen (Part I, paragraphs 1 and 2), Massimiliano Bertollo (Part I, paragraph 3 and editorial support) and Marco Saladini (concept, editing and supervision). Thai Nguyen Chinh and Huong Phung Thi Thanh took care respectively of editing the final version and of researching some background information. The document has been finalized in May 2009 and it is part of the project actions in favor of investments carried out jointly by the office for industrial co-operation and relations with international organizations at the Italian Institute for Foreign Trade (IIFT or ICE) in Rome and the IIFTs Vietnam country office. The aforementioned project is funded by the Italian Ministry of Economic Development, under the extraordinary promotion programme for Vietnam 2008-2010. ICE is thankful to all those who contributed, directly or indirectly, to the preparation of this document.

Vietnam Infrastructure development in Ho Chi Minh City

TABLE OF CONTENTS
OVERVIEW ..................................................................................................................................4

PART I:
PART II: PART III

HOW TO ENTER THE CONSTRUCTION MARKET IN VIETNAM ...................................6 WHY HO CHI MINH CITY? ........................................................................................11 PROJECTS OFFERING BUSINESS OPPORTUNITIES ...............................................13

TRANSPORTATION...........................................................................................................................13 BRIDGES............................................................................................................................................27 PARKING LOTS .................................................................................................................................32 METRO ...............................................................................................................................................36 MONORAIL.........................................................................................................................................41 WATER ...............................................................................................................................................43 ENVIRONMENT AND WASTE MANAGEMENT ................................................................................48 POWER ..............................................................................................................................................53 PORTS................................................................................................................................................55 AIRPORT ............................................................................................................................................58 PART IV: UNIVERSITIES ..........................................................................................................59 PART V: RELEVANT AUTHORITIES .........................................................................................61 PART VI: CONCLUSIONS.........................................................................................................64

Vietnam Infrastructure development in Ho Chi Minh City

OVERVIEW This report aims to facilitate the approach to business opportunities in the Vietnamese infrastructure sector by Italian companies. It focuses on Ho Chi Minh City, the biggest and most dynamic urban area in Vietnam, where plans for developing a wide range of modern infrastructure works have been designed and in some cases are already being implemented. In all infrastructure subsectors both needs and ambitions are very high, while existing facilities are overburdened. Furthermore, local authorities are very familiar with overseas development aid procedures and management of works carried out by foreign contractors and are adopting a fairly open approach to public-private partnerships. According to official estimates, the needs for investments in infrastructure projects amount to over Usd 23 billion, in the period from 2008 to 2020, with 22% of this amount coming from project finance schemes, 37% from Peoples Committee own funds, 18% from Ministry of Transportations funds and 23% from Overseas development aid funds (see table below). Project finance funds needs would be concentrated in the period from 2008 to 2015, while in the following five years the budget of the Peoples Committee would be the major source of funds. As tentative as they may be, given that they cover a very long period of time, these figures give a first overview of the substantial business opportunities which may arise in the future and pinpoint a strong business case for getting involved in them. Altogether, the city seems a very good starting point of entry for Italian companies, which nonetheless will have to face stiff competition and seek the right local partner, before bidding or investing.
FINANCING NEEDS FOR MAJOR INFRASTRUCTURE PROJECTS IN HO CHI MINH CITY
Projects performed/financed by Capital needed (billion VND) 2008-10 Build, operate and transfer (Bot) Build and transfer (Bt) HCM Peoples Committee Ministry of Transportation Overseas development aid Bot or Bt Total Source: Ho Chi Minh City's People Committee 21.901 12.687 24.752 27.608 35.318 300 122.566 2011-15 28.295 1.186 6.502 33.062 51.331 9 120.385 2016-20 1.215 0 49.013 8.983 0 0 59.211 51.411 24.547 138.785 69.653 8.665 9 293.070 3.213 1.534 8.674 4.353 5.416 593 23.783 Total 08-20 (Vnd Total 08-20 (Usd bn.) bn.)

Among recent developments, we could not help but notice a much deeper concern by the authorities with respect to transparency and compliance to procurement rules and best practices. This is much welcome news, given that some recent scandals had caused concern in the industry about the relevant administrations capacity to sustain the very high volume of activity in this area necessary to upgrade local facilities to current and projected needs. The lack of a stable presence by Italian companies interested in this sector contrasts with the active role played by other developed and developing countries companies, among which one can find French, German, United States, Malaysian, Thai and Chinese ones. To fill Italian companies knowledge gap with respect to business opportunities in infrastructure and to respectfully prompt them to act in its respect, the Italian Trade Commission, Ho Chi Minh City office, in agreement with guidelines approved by its Rome-based headquarter and the Ministry of Economic Development of the Italian government, is now carrying out a program of activities at the national level, of which this report forms an integral part. Data and opinions mentioned in the report are gathered from responsible persons of relevant authorized organizations, so they are expected to be reliable. Given that many projects are still at the design or initial implementation stages, changes are possible. Interested companies are advised to check with the Italian Trade Commissions office for further assistance and information.

Vietnam Infrastructure development in Ho Chi Minh City

The report is divided into six main sections. Part I is about procedures for bidding for contracts and investing in public-private partnership infrastructure projects in Vietnam, with a special attention to those based on project finance schemes. Part II is about some key information about Ho Chi Minh city and why foreign companies investors should consider it in order to develop their business. Forty-five major projects and some master plans calling for investment and/or participation in bidding for contracts are listed in part III, with all basic details for each one of them, including desired investment form, total investment value, organizations responsible for those projects and their contact information. The list is an operational tool which can be used to learn and follow-up about business opportunities. When appropriate, we mention the multilateral development bank (e.g. The World Bank Group or the Asian Development Bank), which sponsored the project; in these cases, we advise the reader to visit the relevant websites to collect more information. Unfortunately, regarding power and airport projects, we could not collect detailed information from the relevant authorities. Part IV introduces some reputable universities in Ho Chi Minh City related to the study of civil engineering and urban planning and architecture, where young Vietnamese engineers are trained and research in these fields is carried out. Given their public service and/or utility nature, it goes without saying that in all cases the project originator or owner is a public body. Therefore the authorities relevant for investors and bidders alike are mentioned in part V. This list complements the project-specific contact information provided in part III. The conclusions are articulated in part VI.

Vietnam Infrastructure development in Ho Chi Minh City

PART I:

HOW TO ENTER THE CONSTRUCTION MARKET IN VIETNAM

1. Introduction The Vietnamese construction market is one of the most vibrant ones in Asia and although it has been affected by the global recession in 2008-9, at the moment of writing this report i.e. in Spring 2009 demand was already showing signs of a comeback, both in prices and quantity. The construction sector, and particularly its infrastructure subsector, are poised for additional support from the Vietnamese governments budget, under the stimulus package under consideration at the National Assembly. Given that this report focuses mostly on infrastructure, we will not dwell on the residential subsector. In the civil works area there are two main entrance paths for foreign contractors, bidding and, more recently, investing in project-finance type ventures. 2. Bidding for construction contracts in Vietnam Broadly speaking, foreign contractors (FC), supplying goods and services related to construction, can operate in Vietnam under certain rules and regulations partially described in what follows. A legal framework about procurement of such items has been shaped by competent authorities and is still evolving. It is not as detailed and as fool-proof as in developed countries and gaps need to be tackled with a flexible and sometimes creative approach in order to do business efficiently. A. Legislation FC and their operations in the territory of Vietnam are governed by the Construction Law of Vietnam No.16/QH11 dated 26 November 2003 and the Tendering Law of Vietnam No. 61/2005/QH11 date 29 November 2005. As construction and tendering intertwine closely together, the Government and the competent authorities have issued a series of documents providing guidelines for construction and tendering activities in detail, namely * Decree No.58/2008/ND-CP dated 5 May 2008 providing guidelines for implementing the Tendering Law and for the selection of building contractors pursuant to Construction Law * Decision No.87/2004/QD-Ttg dated 19 May 2004 * Circular No.05/2004/TT-BXD dated 19 May 2004 guiding procedures and management of granting tendering permit for FC operating in the field of construction in Vietnam * Decision No.131/2007/QD-Ttg dated 9 August 2007 promulgating Regulation on leasing foreign consultant in the field of construction in Vietnam and the like. Among those, Decree 58/2008 covers most of the issues relating to tendering activities in the field of construction. Besides, operations in this field are also governed by international treaties to which Vietnam has signed or acceded. B. Overview of regulations on construction activities relating to FC Procedures for taking part in construction works having States capital may be different from dealing with those having non-State capital. As regulated in the Construction Law, the person making the investment decision or the investor in construction of works shall have the right to decide using one of the following forms to select a contractor, depending on the scale, nature and funding source of the particular construction works: 1. Open tendering, limited tendering 2. Appointment of a contractor 3. Selection of a contractor for architectural design for construction of works. Accordingly, projects financed by the State by thirty percent or more of their cost are compulsorily subject to the provisions of the Tendering Law. We will refer to such project hereinafter as to State funded projects, as opposed to remaining projects as to non-State funded projects.

Vietnam Infrastructure development in Ho Chi Minh City

I. Forms of selection of contractor Under the Tendering Law, the investor in a State-funded project must select a contractor using one of the following methods. 1. Open tendering This main form of tendering shall be conducted in order to select a contractor for execution of building works, and the number of participating tenderers shall be unlimited. The conditions and timelimit for participation in the tendering must be publicly announced prior to issuing tender invitation documents. As set forth in the Tendering Law, such announcement must be made in the tendering information newsletters and an English newspaper having mass publication (usually Vietnam News or Saigon Times), as well as via the mass media. 2. Limited tendering This form may be conducted in order to select a construction consultancy contractor and a contractor for execution of building works, upon satisfaction of one of the following three conditions. - The tender package is of a research and experimental nature and only a limited number of bidders is capable of satisfying the requirements of the tender package - The donor of the funds used for tendering requires that tendering be used - The tender package has highly technical requirements or technical peculiarities In this form of tendering, at least 5 experienced and capable bidders are invited to participate. Authorization to invite less than 5 bidders is needed from the authorized person or internal body (e.g. the Managing Boards of the capital-contributing partners). The nationality of a bidder can not be a prerequisite. 3. Selection of an individual to carry out a consulting service The investor selects one out of at least three (3) nominated experts on the basis of scope of work, workload, quality and time limit for the work as well as qualification and ability of the consultants. 4. Direct appointment of contractors The person making the investment decision or the investor in construction of works shall have the right to appoint directly an organization or individual to undertake work or construction of works if and when they are related to State secrets, or are to be done pursuant to an emergency order, or they are temporary works, works of a research or experimental nature, repair, embellishment or restoration of works on cultural or historical-cultural heritage sites and other special cases. Ministers and Presidents of provincial-People Committee are authorized to appoint a contractor for projects worth 5 billion Vnd or less (about 220,000 Eur). Appointed companies and individuals need to have full capability and carry out the works at a reasonable price. 5. Direct procurement of goods This form is applicable where a similar tendering package has been signed within six (6) months. 6. Competitive offers Competitive offers are permitted in the case of tender packages for procurement of goods valued at less than two (2) billion VND and where those goods are commonly used goods, which are readily available on the market. A minimum of 3 offers from 3 different tenderers on the basis of the order request in the tender invitation documents must be obtained. 7. Self implementation This applies where the investor is also a contractor. The law requires that there must be an independent entity selected by the contractor supervising the implementation of the tender package. No formal tendering procedure is required in this case to select the consultant.

Vietnam Infrastructure development in Ho Chi Minh City

8. Special cases Where the forms of selection above cannot be applied, the investor must prepare a plan for selection of a contractor, which ensures competitiveness and economic effectiveness, and submit the plan to the Prime Minister for approval. 9. Non State-funded projects It is not compulsory for investors of non-State funded projects to apply the provisions of the Tendering Law on their process of selection of contractor. They have the right to select contractors the way they want. Should they opt for using the above-mentioned procedure, then they will have to follow it. The investor and FC will have to stipulate an agreement, provided that it is not contrary to Vietnams law. II. Requirements for FC FC can engage in activities subject to selection of contractors including jobs, groups of jobs or the entire work of formulation of detailed construction master plans, formulation of investment projects for construction of works, survey, design, execution of building works, supervision and other construction activities. Nonetheless, some restrictions apply. 1. Whenever they are selected, FC must enter into a partnership with a Vietnamese contractor or undertake to use Vietnamese sub-contractors to implement their work in Vietnam 1 . 2. Pursuant to Vietnams commitment to WTO, for the period of 2 years from the Vietnams accession to WTO, foreigners could only provide construction and related engineering services to foreign-invested enterprises and foreign-funded projects in Vietnam 2 . As Vietnam officially became member of WTO on January 11, 2007, it can be assumed that such restriction have become null and void on January 11, 2009. FC can take part in construction works in Vietnam if they are awarded a contract, and have to meet the following requirements. - Contractors being individuals must have capability for construction practice, which is determined in accordance with grades on the basis of professional levels certified by a lawful professional training organization and on the basis of experience and professional ethics. - Contractors being organizations must have capability for construction activities, which is determined on the basis of the capability for construction practice of individuals within such organization and experience in construction activities, financial capacity, equipment, and management capability of the organization. FC must perform the following administrative procedures in order to work in Vietnam. Obtain a tendering permit prior to commencing their business. The time-limit for competent authority to grant/not grant tendering permit shall be twenty (20) working days from receiving FCs lawful application file. register an administrative office together with its address, communication resources, bank account as well as the seal of such administrative office. Follow other procedures on immigrant, exportation and importation, labor registration, etc. III. Basic contents of contracts in construction activities A well-written contract complying with laws and regulations is considered of paramount importance in construction activities. According to the Construction Law, it shall include the contents of the work to be performed, quality and other technical requirements, duration and schedule for implementation, modalities for checking, acceptance and hand-over, price and method of payment, warranty period, liability for contractual breach and other agreements depending on each particular type of contract and finally the working language of the contract.
1

Article 13.2 of Tendering Law; Article 4.3 of Regulation on management of foreign tenderers attached to Decision 87/2004/QD-TTg dated 19 May 2004. 2 Part II - Schedule of Specific Commitments in Services, Sub-sector 3: construction and related engineering services.
Vietnam Infrastructure development in Ho Chi Minh City 8

3. Investing in infrastructure The relevant need of new and large investments in infrastructure, in addition to the relatively smaller amount of funds made available by international donors and to the gradual phasing-out of concessional loans, in this latter instance due to the fast progress of Vietnam on its development path, are all factors contributing to the need of increasing private investments in the sector, especially through project finance schemes. The Vietnamese government has opened new opportunities for project finance as the most promising way to reduce the gap between resources and need of infrastructures by promulgating in 2007 a new law, closer to international standard. Given that it has not been followed by more detailed regulations and that there is a lack of understanding and knowledge about its implementation among some of the relevant Vietnamese authorities in many cases a project-by-project approach is adopted to finalize negotiations. According to the list of infrastructure projects of national interest, the sizable number of projects that should be developed via Build-operate-transfer, Build-transfer-operate and Build-transfer investment schemes not only shows a strong interest by the government in finding alternative sources of financing but also underlines the new and positive approach of the authorities. Even local private investment funds activated themselves on national and international financial markets to collect and manage new capital resources to implement infrastructure projects. Some local authorities, among which the Ho Chi Minh City Department of Planning and investment, have voiced in several occasions their willingness to pave the way for infrastructure investments carried out by the private sector. Definitions by Law In Chapter 1, article 3, paragraphs 17, 18 and 19 of the Investment Law of 2005 and Chapter I, article 2 of the more recent Decree 78 of September 2007, some basic definitions are set forth as follows. Build-operate-transfer contract (Bot) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration. Upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam. Build-transfer-operate contract (Bto) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility. Upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits. Build-transfer contract (Bt) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility. Upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits Sectors open to Bot, Bto and Bt investments Article 3 of the Decree 78 of September 2007 clarifies sectors in which foreign investors can participate using Bot, Bto and Bt procedures. Such sectors and subsectors include roads, bridges, galleries, railways and tramways, airports, sea ports, river ports and banks, water plants, drainage and sewer systems for waste treatment, power plants, electricity transmission networks and other infrastructure projects decided by the prime Minister. Incentives and guarantees In Chapter 5, Section 1 article 27, paragraph.5, among the sectors eligible for incentives Construction and development of infrastructure facilities and important industrial projects with a large scale is strongly taken in consideration.

Vietnam Infrastructure development in Ho Chi Minh City

The incentives and guarantees in favor of all foreign investments are stated in the above mentioned decree and further detailed in Circular No. 59/2007/TT-BTC of June 14, 2007 of the Ministry of Finance. They include the following provisions. Corporate income tax incentives, on a project-by-project basis, for the whole duration of the project. Exemption from taxes relating to technology transfer and income from royalties on objects of industrial property, technical know-how, technological processes and technical services Other tax incentives on ancillary projects carried out by investors in order to recover capital invested in BT projects, on a project-by-project basis Exemption from import duties for the execution of Bot, Bto or Bt projects, both on equipment and machinery and raw materials and supplies Exemption from land use or land rent fees for the area of land allocated to the project Guarantees for loans, provision of raw materials, sale of products and other contractual obligations to the companies involved in the implementation of the project, as and if needed and on a projectby-project basis Right to mortgage the implementing companies property generated by the project Ban on any nationalization or expropriation by administrative action Capital Requirements In Chapter 1, article 4 of the Decree 78 of September 2007, it is explained that there is a minimum capital requirement for investors and it says that the equity of an investor used for carrying out a project shall be raised in accordance with the schedule agreed in the project contract and must reach the following minimum ratio. (a) With respect to projects with total investment capital of below 75 billion Vnd, the equity of the investor must not be lower than 30% of the total investment capital of such project; (b) With respect to projects with total investment capital of between 75 billion Vnd and below 1,500 billion Dong, the equity of the investor must not be lower than 20% of the total investment capital of such project; (c) With respect to projects with total investment capital of 1,500 or more billion Vnd, the equity of the investor must not be lower than 10% of the total investment capital of such project. Case Study: Lao Cai Hanoi Hai Phong Corridor Two highways, one from Lao Cai to Hanoi and the other from Hanoi to Hai Phong, in the Northern part of the country, are considered as national priorities for Vietnam and for its relations with neighboring countries, since they will improve the connection between Vietnam and Yunnan province of China. The project has the goal to boost trade between the two countries, improve the socio-economic conditions of the population and upgrade Hai Phong urban and harbour facilities to a major commercial and logistic hub for Chinese goods. The Asian Development Bank (Adb) has authorized a loan of 1,1 billion USD to Vietnam to implement the construction of the Lao Cai Noi Bai Airport highway (244km) and, at present, this is the biggest loan agreement between Vietnam and the Adb and in the latters history as a whole. The project has been conceived as a Bot investment and the Vietnamese enterprise Vec is going to manage and obtain the highway toll for 32 years, starting at the end of works in 2012. The Hanoi Hai Phong highway (105km) has an estimated cost of 1,5 billion Usd and investment, according to government decision, will be paid back collecting tolls over 35 years. The government is taking in consideration a special line of funding and so far a consortium made of Vib, Vietcom Bank, Viet NM Construction Export and Import Corp and Saigon Invest Group is proceeding with the project. German and Korean enterprises are currently part in the construction and construction supervision. One of the 10 individual lot contracts has been awarded to GS Engineering & Construction Corp (South Korea) and concerns the construction of 9,3km of road and two bridges over a period of 3 years. Funds came from Vietnam Development Bank (100 million USD) and Exim Bank (75 millions of USD, South Korea) and the investment is going to be paid back with a 25 year right on highway tolls.

Vietnam Infrastructure development in Ho Chi Minh City

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PART II:

WHY HO CHI MINH CITY?

Vietnam Infrastructure development in Ho Chi Minh City

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I. Geographical location Ho Chi Minh city a biggest city in Vietnam, with a total area of 2,095 square kilometers, is located from 10010-10038 North and 10602-106054 East. The city is bordered by Binh Duong Province to the north, Tay Ninh Province to the northwest, Dong Nai Province to the east and northeast, Ba Ria-Vung Tau Province to the southeast, and Long An and Tien Giang provinces to the west and southwest. Ho Chi Minh City is 1,730km far from Hanoi - the capital and is at the crossroads of international maritime routes. The city, with many ports inside, is 50km from the East Sea in a straight line, so it is a transport hub of the southern region and a gateway to the world. II. Population and labor force There are more than 8 million people living in 19 urban and 5 rural districts. The fairly young, with over 50% under the age of 35. III. Economy Ho Chi Minh city is at the center of the burgeoning economy and the countrys industrial heart. Year 2007 The country of Vietnam Ho Chi Minh city GDP growth (%) 8.48 12.2 GDP per capita (USD) 835 2,200 population is

In 2008, in spite of the high inflation and many difficulties, the city continued maintaining its growth rate GDP was achieved at 11%, 1.6 times higher than that of the whole country. The total export turnover was increased to 24.3% and the foreign direct investment (FDI) was reached 8.38 billion USD, 4.22 times upper than the same period last year. Ho Chi Minh city has been played an important role to the countrys development, accounting for 21% of total GDP, 30% of the industrial output, 29% of the total retail sales and services, 40% of the export turnover, and 33% of the State budget. In particular, its GDP per capita is highest in Vietnam, 3 times higher than the countrys average figure. As a result, the progress of Ho Chi Minh has an influence on the growth of the country of Vietnam. However, the development of the city in economy, population, and means of transport is quick, whereas the citys exiting infrastructure system is old, insufficient and not corresponding to the maturity of a big city and an economic center like Ho Chi Minh city. That more or less prevents the citys development. Deputy chairman of HCM City Peoples Committee Nguyen Trung Tin remarked that: "Roads are being developed by two per cent while the number of vehicles grows by 10 per cent per year, leading to the overload on HCM Citys infrastructure facilities." Realizing such problems, the Vietnamese government and Ho Chi Minh city leaders take priority on enlargement and completion of the citys infrastructure. The total estimated investment capital needed for road, railway and waterway projects for the city by the year 2025 will be $13.9 billion. Therefore, the city is calling for foreign investment in infrastructure for the citys stable development. Please see more detail about those projects in the next part.

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PART III

PROJECTS OFFERING BUSINESS OPPORTUNITIES Chapter 1 TRANSPORTATION

Vietnams robust economic growth is accompanied by an urgent need for a good transportation network and infrastructure. Vietnams infrastructure is in a worrisome state, with transportation systems largely weak, small-scale and below technological standards. The country has not yet developed deepwater seaports or standard highways, and urban road systems in major cities have not been fully connected to the national highway system. As a result, main projects are underway to build more ports, highways, railways, roads, bridges, car parks and other auxiliary facilities. The country plans to develop 6,000km of expressways by 2025, with 261km of expressways designed for high-speed travel to be built each year until 2025 at an estimated total cost of $22.8 billion. The Government has set aside billions of dollars to be invested in numerous mega-scale road and rail projects. In Ho Chi Minh City alone, the total estimated investment capital needed for road, railway and waterway projects will be $13.9 billion. With the total acre of 2,095 km2, there are 978 bridges, 3,584 streets with the total length of 3,668 km in Ho Chi Minh city. Most roads inside the city are narrow. Of which, 14% of them are over 12m wide, possible for bus transport. 51% are from 7m to 12m wide, suitable with cars and microbuses; and remains, less than 7m in width, fitting with motorbikes and bikes. Till July 2008, the number of registered means of vehicles was 3,926,730, including 361,411 cars (10.63% higher than in the year 2007); 3,565,289 motorbikes (6.8% higher than in the year 2007) and about 60,000 cars and 700,000 motorbikes registered at other provinces; 30,000cyclos and 3 wheel vehicles and nearly 2,000,000 bicycles. Besides projects financed by the capital budgets of the city and the Central, Ho Chi Minh city is calling for investment in other infrastructure projects under the investment forms of Bot, ODA and Bt. Here are some major projects attracting the concern of many investors. A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them.

No.

Project name

Specification and objective

1.1 1.2

HCMC-Long Thanh- Dau Giay Expanding National Highway 22 Parallel road to Ha Huy Giap Road

Technical assistance of ADB

Investm ent Capital (USD mil) 10 410.2 803.125

Form of investmen t

1.3

1.4

Southern Inter

- Loan project financed by ADB - To decrease traffic flows of the existing centripetal national highways with mass vehicle transport capacity + Length: 20km - Length: 4 km; width: 40km + Connecting Phu Long bridge to an external centripetal axis in north east of the city + Connecting Belt road No.2 to Binh Duong province + An interregional route connecting

Bot,Bt

119

Bot and Bt

1,689

Bot,Bt
13

Vietnam Infrastructure development in Ho Chi Minh City

Provincial Expressway 1.5 Upgrading and expanding provincial road No.15

1.6 1.7

Overhead road No.3 Upgrading and expanding roads from An DuongVuong Phan Anh BinhLong Pro.Road No. 3 Nguyen Van Linh Belt Road No.2 Nguyen Van Linh cross road Binh Tien Nguyen Van Linh _ Pham Hung Nguyen Van Linh Nguyen Huu Tho Hang Xanh traffic point Thu Duc traffic point Cong Truong Dan Chu Cay Go traffic point Nhon Trach road

directly to a traffic network of expressways, national highways, sea ports and airport + Creating the external centripetal axis for connecting Belt roads No. 2, 3, 4 and Tay Ninh Province and the surrounding areas + Connecting belt roads and centripetal provincial roads (No.12, 15,16) to create an external uninterrupted cross transport network. - 4 lanes; Length: 7 km - Length: 7km - Width: 30m - Route: Kinh Duong Vuong to Tan Binh industrial park.

71.25

Bot and Bt

211 127

Bot or Bt proposed by investors

1.8

- To solve the traffic jam

19

1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16

- To solve the traffic jam - To solve the traffic jam - To solve the traffic jam - To solve the traffic jam - To solve the traffic jam - To solve the traffic jam - To solve the traffic jam - To construct a part of ring road No.4 and to complete the road system in district 9

48 24 48.75 28.125 53.125 26.25 15.625 138

rehabilitate and exploit onsite land fund Proposed by investors Proposed by investors exploit onsite land fund exploit onsite land fund exploit onsite land fund exploit onsite land fund exploit onsite land fund Bot

Vietnam Infrastructure development in Ho Chi Minh City

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1.1 Project financed by ADB: Ho Chi Minh City-Long Thanh-Dau Giay Expressway Project Type/Modality of Assistance: + Project No.40198-01 Loan 2374 Vie: Ho Chi Minh city Long Thanh Dau Giay Expressway Technical Assistance Project From: Asian Development Fund: USD 10 million + Project No.40198-02 Loan 2451 Vie: Ho Chi Minh city Long Thanh Dau Giay Expressway Construction Project From: Ordinary Capital Resources: USD 410.2 million 1.1.1 Brief introduction A rapid increase in the use of means of vehicles is a reason caused congestion on the highway network. If industry is to continue as a major driver of growth in the Vietnamese economy, there is a must to maintain the development of the highway transport system so that goods and people can be moved efficiently. Under the Expressway Network Development Plan, ADB provided technical assistance (TA) responding to the Governments request for assistance to plan the development of an expressway network. The TA funded a study of an Expressway Master Plan for the long-term development of the countrys expressway network, and identified priority expressway projects. The study acknowledged the Ho Chi Minh - Long Thanh - Dau Giay expressway (HLD expressway) as a high priority project and, based on a preliminary assessment, found the project to be economically, financially, and technically viable. 1.1.2 Specification HLD expressway is operating, connecting HCMC District 9 with Dau Giay (about 51 km) as a four-lane, high-speed, limited-access, tolled highway. 1.1.3 Objectives Transport users in HCMC and Dong Nai Province to travel from District 9 in HCMC to Dau Giay with lower transport costs on the HLD expressway. 1.1.4 Responsible ADB dept: Southeast Asia Department 1.1.5 Responsible ADB division: Transport and Urban Development Division, SERD 1.1.6 Executing Agencies: Vietnam Expressway Corporation Hamlet No. 2, Linh Nam Ward, Hoang Mai District Hanoi Vietnam Tel: 84-4- 36430266 Fax: 84-4-36430270

Vietnam Infrastructure development in Ho Chi Minh City

15

Vietnam Infrastructure development in Ho Chi Minh City

16

External Centripetal Roads

Vietnam Infrastructure development in Ho Chi Minh City

17

1.2 Project name: Expanding National Highway 22 (Trans Asia Highway) 1.2.1 Objective - It helps to decrease traffic flows of the existing centripetal national highways with mass vehicle transport capacity. - It connects traffic belt roads, centripetal provincial roads 12,15,16 to create a roundabout network from external traffic routes that enter the City on the northwest gateway (Cambodia) and north gateway (Binh Duong province). 1.2.2 Location - Districts: 12, Hoc Mon, and Cu Chi. 1.2.3 Scale - Length: 20 km - Cross section area: + Plan 1: 60 120m + Plan 2: building overpass pedestrian road above the existing separating strip. - Route: From An Suong crossroad to intersection of Belt road No.4 1.2.4 Total investment capital - USD803.125 million 1.2.5 Investment form - Bot, Bt1.2.6 Priority level: 1 1.2.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.3 Project name: Parallel road to Ha Huy Giap road 1.3.1Objective - Playing a role as the municipal centripetal road with current centripetal national highways (National Highway 1A ; National Highway No. 13 and No. 22); expressways with high vehicle clearance capacity; belt roads and centripetal provincial roads (provincial Road No.12; No. 15 and No. 16) that can create an uninterrupted network to external main roads in North East of the city. - Connecting Phu Long Bridge Project to an external centripetal axis in North East of the city - Connecting Belt Road No. 2 to Binh Duong Province 1.3.2 Location - District 12 1.3.3 Scale - Length: 4km - Width : 40m - Route: From Nga Tu Ga Junction to the new Phu Long Bridge - Bridges (length : 239,4m, width: 34m) including: + Giao Khau Bridge + Ong Dung Bridge 1.3.4 Total investment capital - USD119 million 1.3.5 Investment form - Bot and Bt 1.3.6 Priority level: 1

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1.3.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.4 Project name: Southern Inter Provincial Expressway 1.4.1Objective - To be an interregional route connecting directly to a traffic network of expressways, national highways, sea ports, and airport. - It functions as an urban traffic belt, routing through satellite cities and crossing almost arterial roads, centripetal roads, radial roads that help reduce heavy traffic in the urban area. - It contributes to urbanization and economic development of districts of Nha Be and Can Gio and the west east transport of goods from southern key economic zone. 1.4.2 Location - Districts: Binh Chanh, Nha Be, Can Gio ( Ho Chi Minh city); Ben Luc ( Long An province); Nhon Trach, Long Thanh ( Dong Nai province). 1.4.3 Scale - As sub projects planned 1.4.4 Total investment capital - USD1, 689 million estimated 1.4.5 Investment form - Bot, Bt 1.4.6 Priority level: 2 Project.TP1: Southern Inter Provincial Expressway Location - Districts: Binh Chanh, Nha Be, Can Gio ( Ho Chi Minh city); Ben Luc ( Long An province); Nhon Trach, Long Thanh ( Dong Nai province). Scale - Length: 59km - Route: from intersection of Saigon Trung Luong expressway (at Ben Luc) to intersection of Bien Hoa Vung Tau Expressway. - Cross section area: + Phase 1: 4 lanes (2 lanes for each traffic way) + Planning phase: 8 lanes (4 lanes for each traffic way) Project.TP2: Phuoc An bridge Location - Nhon Trach- Dong Nai province. Scale - Length: 700m - Cross section area: 6- 8 lanes Project.TP3: Can Giuoc II bridge Location - Nha Be district Ho Chi Minh city Scale - Length: 600m - Cross section area: 6- 8 lanes Project.TP4: Ong Lon II bridge Location - Nha Be district Ho Chi Minh city
Vietnam Infrastructure development in Ho Chi Minh City 19

Scale - Length: 500m - Cross section area: 6- 8 lanes * Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.5 Project name: Upgrading and expanding provincial road no. 15 1.5.1 Objective - Creating the external centripetal axis in the North, connecting Belt roads No. 2, 3, 4 and Tay Ninh Province and the surrounding areas - Subsidiary to the current centripetal national highways (No. 13, No. 22) to enhance traffic capacity - Connecting belt roads and centripetal provincial roads (No.12, 15,16) to create an external uninterrupted cross transport network 1.5.2 Location - District 12, Hoc Mon District, Cu Chi District. 1.5.3 Scale - As per sub-projects 1.5.4 The investment capital - USD 71.25 million 1.5.5 Investment form - Bot and Bt 1.5.6 Priority level: 1 DA.TP1: From North East Tan Chanh Hiep to Bau crossroad Location: District 12 Scale - Length: 1,919m - Width: 35m - Routing: From Bau Crossroad to Quang Trung Bridge (junction of north east Tan Chanh Hiep road, behind Quang Trung Software Park) DA.TP2: Renovating and upgrading Trinh Thi Mien (the new provincial road No. 15) Location: Hoc Mon District Scale - Length: 6km - Width: 35m - Route: Bau Crossroad (junction with To Ky street) to Xang Bridge DA.TP3: From Xang Bridge to Ben Nay Bridge Location: Cu Chi District Scale - Length: 11.9km - Width: 35m - Route: From Xang Bridge to Ben Nay Bridge DA.TP4: From Ben Nay Bridge to Provincial Road No. 7 Location: Cu Chi District Scale - Length: 10.45 km - Width: 35m - Route: From Ben Nay Bridge to Province Road No. 7
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Vietnam Infrastructure development in Ho Chi Minh City

DA.TP5: Provincial Road No. 7 Ben Suc Bridge Location: Cu Chi District Scale - Length: 10.58km - Width: 35m - Route: From Province road No. 7 to Ben Suc bridge* Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

1.6 Project name: Overhead road no.3 1.6.1 Location - From To Hien Thanh Le Hong Phong Ly Thai To Nguyen Van Cu Le Van Luong Nguyen Van Linh 1.6.2 Scale - 4 lanes 1.6.3 Length - 7.3 km. 1.6.4 The investment capital - USD 211 million 1.6.5 Investment form - Bot or Bt 1.6.6 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.7 Project name: Upgrading and expanding roads from AN DUONG VUONG PHAN ANH BINH LONG PROVINCIAL ROAD NO. 3 1.7.1 Location - District 6, Binh Tan, Tan Phu 1.7.2 Scale - Length: 7km - Width: 30m - Route: Kinh Duong Vuong to Tan Binh Industrial Park 1.7.3 The investment capital - USD 127 million 1.7.4 Investment form - Investors actively suggest investment forms. 1.7.5 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

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1.8 Project name: NGUYEN VAN LINH BELT ROAD NO.2 1.8.1 Objective - Solve the traffic jam 1.8.2 Location - District 7

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1.8.3 Scale - As per project - Area: 10.52ha 1.8.4The investment capital - USD19 million 1.8.5 Investment form - Rehabilitate and exploit onsite land fund 1.8.6 Priority level: 1 1.8.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.9 Project name: Nguyen Van Linh cross road Binh Tien- National highway no.50 1.9.1 Objective - Solve the traffic jam 1.9.2 Location - District 7 1.9.3 Scale - As per project - Area: 13.79ha 1.9.4 The investment capital - USD 48 million 1.9.5 Investment form - Investors actively suggest investment forms. 1.9.6 Priority level: 1 1.9.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.10 Project name: NGUYEN VAN LINH PHAM HUNG 1.10.1 Objective - Solve the traffic jam problem 1.10.2 Location - District 7 1.10.3 Scale - Traffic point with different grades - Area: 5.01ha 1.10.4 The investment capital - USD24 million 1.10.5 Investment form - Investors actively suggest investment forms. 1.10.6 Priority level: 1 1.10.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

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1.11 Project name: NGUYEN VAN LINH NGUYEN HUU THO 1.11.1 Objective - Solve the traffic jam problem at traffic point 1.11.2 Location - District 7 1.11.3 Scale - Traffic point with different grades - Area: 2.2ha 1.11.4 The investment capital - USD48.75 million est. 1.11.5 Investment form - Exploit onsite land fund. 1.11.6 Priority level: 1 1.11.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.12 Project name: Hang Xanh Traffic Point 1.12.1 Objective - To solve the traffic jam problem 1.12.2 Location - Binh Thanh district 1.12.3 Scale - Traffic point with different grades - Area: 4.8ha 1.12.4 The investment capital - USD28.125 million est. 1.12.5 Investment form - Exploit onsite land fund 1.12.6 Priority level: 1 1.12.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

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1.13 Project name: THU DUC TRAFFIC POINT 1.13.1 Objective - To solve the traffic jam problem 1.13.2 Location - Thu Duc district 1.13.3 Scale - Traffic point with different grades - Area: 24 ha 1.13.4 The investment capital - USD 53.125 million 1.13.5 Investment form - Exploit onsite land fund 1.13.6 Priority level: 1 1.13.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.14 Project name: Cong Truong Dan Chu 6-Way traffic point 1.14.1 Objective - To solve the traffic jam problem 1.14.2 Location - Districts 3 and 10 1.14.3 Scale - Traffic point with different grades - Area: 1.8ha 1.14.4 The investment capital - USD26.25 million est. 1.14.5 Investment form - Exploit onsite land fund 1.14.6 Priority level: 1 1.14.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.15 Project name: Cay Go traffic point 1.15.1 Objective - To solve the traffic jam at traffic point 1.15.2 Location - District 6 1.15.3 Scale - Traffic point with different grades - Area: 2ha 1.15.4 The investment capital - USD15.625 million

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1.15.5 Investment form - Exploit onsite land fund 1.15.6 Priority level: 1 1.15.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 1.16 Project name: Nhon Trach road (Thu Duc intersection Interprovince highway 25B)

1.16.1 Investor: The HCM City Service of Communications and Public Works 63 Ly Tu Trong Street, District 1- HCM City, Vietnam Tel: 84-8-3829 0451 or 3823 7439 ; Fax: 84-8-3829 0458 1.16.2 Objective: to construct a part of ring road No. 4 and to complete the road system in district 9 1.16.3 Location: district 9- Ho Chi Minh City 1.16.4- Scale: - Length: 11 km - Capital: US $138 million 1.16.5 Technical standard - Speed: 120 km/h - 8 lanes: 8x3,75 - 2 emergency lanes: 2x3m 1.16.6 Investment form: Bot 1.16.7 Investment incentive: Corporate Income Tax: 20% for 10 years, 4 years tax holiday and 50% tax reduction in following 9 years (Decree 164/2004/ND-CP dated 22/12/2003)

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Chapter 2 BRIDGES A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them No. 2.1 Project name Vuon Lai street- Cam Thuat bridge Specification and objective * Vuon Lai Street - Length: 10.45km; - Width: 30m - Route: national highway 1A to Vam Thuat * Vam Thuat bridge - Length: 940m; - Width: 30m - To complete a main road system connecting HCM city downtown to Can Gio district Eco tourism area of HCM city - Length: 1,000 m - Number of lanes: 4 - Length: 3.25km and cross section area: 30m Investment Capital (USD mil) 23 Form of investment proposed by investors

25 138 63 700 Bot Bot Bot

2.2 2.3 2.4

Binh Khanh bridge Saigon 2 Brige Binh Tien Road Bridge

2.1Project name: VUON LAI STREET CAM THUAT BRIDGE 2.1.1 VUON LAI STREET 2.1.1.1 Location - An Phu Dong Ward, District 12 2.1.1.2 Scale - Length: 10.45km - Width: 30m - Route: National Highway 1A to Vam Thuat Bridge 2.1.1.3 The investment capital - USD 23 million 2.1.1.4 Investment form - Investors actively suggest investment forms. 2.1.2 VAM THUAT BRIDGE 2.1.2.1 Location - Cross Vam Thuat river, connecting ward 25, Binh Thanh District and An Phu Dong Ward, District 12 2.1.2.2 Scale - Low- cable stayed bridge - Length: 940m - Width: 30m 2.1.2.3 The investment capital - USD 25 million 2.1.2.4 Investment form - Investors actively suggest investment forms. * Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee)

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63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 2.2 Project name: BINH KHANH BRIDGE

BNH KHNH Bridge

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2.2.1 Investors: The HCM City Service Of Communications And Public Works 63 Ly Tu Trong Street, District 1 HCM City Vietnam Tel: 84-8-38290451 or 38237439 Fax: 84-8-38290548 2.2.2 Objective Constructing Binh Khanh bridge will help to complete a main road system connecting HCM city downtown to Can Gio district Eco tourism area of HCM city. It also helps to reduce traffic burden of Binh Khanh Ferry. 2.2.3 Location: Nha Be and Can Gio district 2.2.4 Scale - Length: 3 km and width: 27.5m - Capital: US $138 million, including: + Construction cost: US $96,6 million + Cost of construction connected roads: US $12,4 million + Land clearance: US $11 million + Other costs: US $16,3 million + Backup Cost: US $13,6 million 2.2.5 Investment form: Bot 2.2.6 Investment Incentive: Corporate Income Tax: 20% for 10 years, 4 years tax holiday and 50% tax reduction in following 9 years (Decree 164/2004/ND-CP dated 22/12/2003) 2.3 Project name: Saigon 2 Bridge 2.3.1 Objective - To help the transportation between district 2 and Binh Thanh district more easily, reducing the pressure of traffic of the existing Saigon Bridge. 2.3.2 Location - District 2 and Binh Thanh District. 2.3.3 Scale - Length: 1,000 m - Number of lanes: 4 2.3.4 The investment capital - ~ USD 63 million 2.3.5 Investment form - Bot 2.3.6 Investor - Phu My Bridge Joint-Stock Company. - Address: A27, Nam Long area, Tran Trong Cung Street, Quarter 1, Tan Thuan ong Ward, Dist.7, Ho Chi Minh city, Vietnam - Tel: (84-8) 38730313 2.4 Project name: BINH TIEN road bridge 2.4.1 Investors The HCM City Service Of Communications And Public Works 63 Ly Tu Trong Street, District 1 HCM City Vietnam Tel: 84-8-38290451 or 38237439 ; Fax: 84-8-38290548

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2.4.2 Objective The extended route of Binh Tien (including canal crossing bridges over Tau Hu canal and Doi canal) combines to municipal remodeling and improves centripetal routes, including National Highway 50 and completes construction of transportation corridors to the south of the city. 2.4.3 Location: Binh Chanh district, district 6, and district 8 2.4.4 Scale - Length: 3.25 km and cross section area: 30m - Routing: from Binh Tien Pham van Chi crossroad in district 6 to Minh Chanh district, then connected to traffic intersection of by pass route National Highway 50 and Nguyen Van Linh. - Road section: + In district 6: 286.4m + Section between 2 bridges over canal: 254.8m + Section connected to Nguyen Van Linh: 2,134.7. - Bridge section: + Reinforced concrete bridge and reinforced prestressed concrete bridge, standard: 100 years. + Calculated live load: HL93 + Walking group loading: 3x10-3 Mpa + Navigational clearance: BxH = 40mx6m + Length: bridge over Tau Hu canal:173.35m, bridge over Doi canal:356.6m + Cross section area: 31m ( 4 car traffic lanes, 2 mixed traffic lanes) 2.4.5 Investment Capital: US$700 million 2.4.6 Investment form: Bot and urban rehabilitation 2.4.7 Priority level: 1

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Chapter 3 PARKING LOTS A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them. No. Project name Specification and objective Investme nt Capital (USD mil) 38 34 Form of investment Bot, BOO, PPP Bot

3.1 3.2

3.3

3.4

3.5

3.6

Multi Storey Parking Lots Underground Parking Area at Hoa Lu Stadium Underground Parking Area at Bach Tung Diep Park Underground Parking Area at Tao an Stadium Underground Parking Area at Ton uc Thang Street Underground Parking Area at 23-9 Park

Constructing multi storey parking lots To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking

22

Bot

69

Bot

56

Bot

50

Bot

3.1 Project name: Multi Storey Parking Lots 3.1.1 Objective - Constructing multi-storey parking lots 3.1.2 Location - Center city (proposed by investor) 3.1.3 Investment form - Bot, BOO, PPP 3.1.4The investment capital - USD 38 million 3.1.5 Time of investment - 2008 to 2010 3.1.6 Priority level: 1 3.1.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188
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3.2 Project name: Underground Parking Area at Hoa L Stadium 3.2.1 Objective - To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking. 3.2.2 Location - District 1. 3.2.3 Scale - Area of ground surface: 1,200 m2 - Underground construction area: 15,400 m2 - Total underground floors: 5 - Capacity: 1,500 cars and 4,000 motorbikes maximum 3.2.4 The investment capital - USD 34 million 3.2.5 Investment form - Bot 3.2.6 Investor - ong Duong Co., Ltd - Address: 47A, Huynh Thuc Khang Street, ng a District, H Ni City, Vietnam - Tel: (84-4) 37733204 3.2.7 Contact for more information - Department of Transportation and Urban Public Works (HCM city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 3.3 Project name: Underground Parking Area at Bach Tung Diep Park 3.3.1 Objective - To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking. 3.3.2 Location - District 1. 3.3.3 Scale - Area of ground surface: 300 m2 - Underground construction area: 5,200 m2 - Total underground floors: 5 - Capacity: 450 cars and 370 motorbikes maximum 3.3.4 The investment capital - USD 22 million 3.3.5 Investment form - Bot 3.3.6 Investor - Bach Tung Diep Urban Service Joint-Stock Company - Address: 83 Cong Hoa Street, Ward 4, Tan Binh District, Ho Chi Minh city, Vietnam - Tel: (84-8) 62939416 3.3.7 Contact for more information - Department of Transportation and Urban Public Works (HCM city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 3.4 Project name: Underground Parking Area at Tao an Stadium

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3.4.1 Objective - To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking. 3.4.2 Location - District 1. 3.4.3 Scale - Area of ground surface: 1,500 m2 - Underground construction area: 40,000 m2 - Total underground floors: 4 - Capacity: 3,000 cars and 4,000 motorbikes maximum 3.4.4 The investment capital - USD 69 million 3.4.5 Investment form - Bot 3.4.6 Investor - Vietnam Urban and Industrial Zone Development Investment Corporation (IDICO) - Address: 151 ter, Nguyen inh Chieu Street, Dist.3, HCMC - Tel: (84-8) 38438883 3.4.7 Contact for more information - Department of Transportation and Urban Public Works (HCM city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 3.5 Project name: Underground Parking Area at Ton uc Thang Street 3.5.1 Objective - To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking. 3.5.2 Location - District 1. 3.5.3 Scale - Total area: 1220 m2 - Capacity: 350 spaces maximum 3.5.4 The investment capital - USD 56 million 3.5.5 Investment form - Bot 3.5.6 Investor - Saigontourist Holding Company - Address: 23 Le Loi Street, Dist.1, Ho Chi Minh city, Vietnam - Tel: (84.8) 3829 2291 - 3822 5874 - 3822 5887 - 3829 5000 3.5.7 Contact for more information - Department of Transportation and Urban Public Works (HCM city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 3.6 Project name: Underground Parking Area at 23-9 Park 3.6.1 Objective - To solve the shortage of parking areas in the city center. Underground service areas like supermarket, retail stores, entertainment center will be included in the parking. 3.6.2 Location - District 1.
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3.6.3 Scale - Area of ground surface: 600 m2 - Underground construction area: 50,000 m2 - Total underground floors: 4 - Capacity: 2,000 cars and 2,000 motorbikes maximum 3.6.4 The investment capital - USD 50 million 3.6.5 Investment form - Bot 3.6.6 Investor - Urban Properties Development Corporation (the United Kingdom) 3.6.7 Contact for more information - Department of Transportation and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

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Chapter 4 METRO

Based on the Master plan of developing Ho Chi Minh city transportation to the year 2020, six metro routes (MRT) with a combined length of 107km will be built as follows: Metro route No.1: Ben Thanh Suoi Tien Metro route No.2: Ben Thanh Tham Luong Metro route No.3: Ben Thanh Mien Tay station
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Metro route No.4: Go Vap Khanh Hoi Metro route No.5: Saigon bridge Can Giuoc Metro route No.6: Au Co Luy Ban Bich Phu Lam roundabout

Currently, the Metro No.1 was financed by ODA of the Japanese Government. The Metro No.2 and No.3 were sponsored in Technical Assistance by Asia Development Bank (ADB) before giving the investment loan for those 2 lines. The Metro No.4, No.5,and No.6 are still waiting for investors. Please see more detail in following parts next pages. A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them. No. 4.1 4.2 4.3 Project name Metro rail system project Metro route No.4 Metro route No.5&6 Specification and objective - To develop public transport and road infrastructure. - Length: 16 km + To reduce the pressure of high traffic from North South to the city center *No.5 + To reduce the pressure of traffic jam - Length: 17km * No.6 - Length: 6km Investment Capital (USD mil) financed by ADB 1,300 1,530 540 Form of investment

ODA, Bot,PPP PPP

4.1 Ho Chi Minh City Metro Rail System Project Financed By ADB 4.1.1PART A: 4.1.1.1 Introduction The Government has asked the Asian Development Bank (ADB) to provide a loan to construct 2 connected MRT lines. The projects is included in the 2007 2010 country partnership strategy prepared between ADB and the Government of Vietnam. 4.1.1.2 Specification The two lines as conceived will cover a total of 20.6km, with 22 stations, traversing the central business district of Ho Chi Minh city(HCMC). 4.1.1.3 Objectives The Vietnamese Governments strategy for HCMC is to develop public transport and road infrastructure to improve the quality of urban living and the urban environment. The Peoples Committee sees urban rail mass rapid transit (MRT) as a key pillar in its strategy to promote public transport use and restrain the use of private vehicles. 4.1.1.4 Implementing agency The Urban Metro Preparation Unit (UMPU) in the HCMC Peoples Committees Department of Transport and Urban Public Works (DTUPW) is responsible for planning and implementing the system. 4.1.2 PART B: Proposed Technical Assistance In order to clarify the scope and feasibility of the proposed lines, it is proposed that ADB provide project preparatory technical assistance (TA). 4.1.2.1 Objectives The TA, which is Project Preparatory Technical Assistance, will advise HCMC Peoples Committee on the integrated development of the two MRT lines in HCMC. The goal of the MRT

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is to provide convenient, comfortable, safe, affordable, and clean urban travel that improves the quality of urban living and reduces reliance on private modes of travel. 4.1.2.2 Method The TA will provide consulting and other services to the UMPU to develop plans to implement the two lines of a proposed MRT system for HCMC. It is anticipated that, subject to the outcome of the TA, before the investment loan, ADB will finance detailed engineering design, preparation of tender documentation, and other preparatory activities to support the implementation of the Project. 4.1.2.3 Cost and financing The total cost of the TA is estimated at USD 2.2 million equivalent, of which ADB will finance USD 1.7 million. The TA will be financed on a grant basis by the Japan special fund, funded by the Japanese Government. The Government has been informed that approval of the TA does not commit ADB to finance any ensuing project. The Government will finance USD 0.5 million equivalent in kind through the provision of geotechnical surveys, in city transportation, adequate air conditioned office space, counterpart staff, and access to telecommunication facilities for the consulting firm during implementation of the TA.

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4.2 Project name: METRO ROUTE NO.4 4.2.1Objective - Public transportation to reduce the pressure of high traffic from North South to the city center. 4.2.2Location - District 4 and District 12 4.2.3Scale - Route: Ben Cat Bridge Thong Nhat 26/3 Nguyen Oanh Nguyen Kiem Phan Dinh Phung Hai Ba Trung Ben Thanh Nguyen Thai Hoc Khanh Hoi Le Van Luong Nguyen Van Linh. - Estimated number of stations: 12 - Length: 16 km - Requirement: Applied technology based on international standard 4.2.4The investment capital - USD1,300 million 4.2.5Investment form - ODA, Bot, PPP 4.2.6 Priority level: 2 4.2.7Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 4.3 Project name: Metro route No.5 & 6 4.3.1 Metro route No. 5 4.3.1.1 Objective - Public transportation to ease the traffic pressure along East West direction through the central part of the city. 4.3.1.2 Location - Districts: 5,8,11, Binh Thanh, Phu Nhuan, Tan Binh. 4.3.1.3 Scale - Route: Can Giuoc National road 50 Tung Thien Vuong Ly Thuong Kiet Hoang Van Thu Phan Dang Luu Bach Dang Dien Bien Phu Saigon Bridge - Length: 17 km - Estimated number of stations: 18 - Requirement: Applied technology based on international standard 4.3.1.4 The investment capital: USD 1,530 million 4.3.1.5 Investment form: PPP 4.3.2 Metro route No. 6 4.3.2.1Objective - Construction of a mass rapid transit system which is safe and convenient, to solve traffic congestion along North South West direction. 4.3.2.2 Location - Districts: 6 and Tan Phu. 4.3.2.3Scale - Route: Ba Queo Au Co Luy Ban Bich Tan Hoa Phu Lam roundabout - Length: 6 km ; - Estimated number of stations: 7 - Requirement: Applied technology based on international standard 4.3.2.4The investment capital: USD 540 million 4.3.2.5 Investment form: PPP 4.3.2.6 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee)
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63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam

Tel: (84-8) 38292188

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Chapter 5 MONORAIL A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them. No. Project name Specification and objective Investme nt Capital (USD mil) 213 140 390 Form of investment Bot Bot or Bt Bot or Bt

5.1 5.2 5.3

Monorail No.1 Monorail No.2 Monorail No.3

Public transportation to reduce the pressure of traffic jam Public transportation to reduce the pressure of traffic jam Public transportation to reduce the pressure of traffic jam

5.1 Project name: Monorail No.1 5.1.1 Objective - Public transportation to reduce the pressure of traffic jam. 5.1.2 Location - District 1, District 5, District 6, Binh Tan District. 5.1.3 Scale - Route: Ton uc Thang East-West Boulevard Ly Chieu Hoang Western Bus Stop. - Estimated number of stations: 23 - Length: 12.5 km 5.1.4The investment capital - USD 213 million 5.1.5 Investment form - Bot 5.1.6 Contact for more information - Department of Transportation and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 Note: Already signed the MoU with the association between Thanh Danh Construction Co.,Ltd and Titanium Management Corporation (Malaysia). 5.2 Project name: Monorail No.2 5.2.1 Objective - Public transportation to reduce the pressure of traffic jam. 5.2.2 Location - District 2, District 7, District 8 5.2.3 Scale - Route: Nguyen Van Linh Highway 50 District 2. - Estimated number of stations: 22 - Length: 14 km 5.2.4The investment capital - USD 140 million 5.2.5 Investment form
Vietnam Infrastructure development in Ho Chi Minh City 41

- Bot or Bt 5.2.6 Contact for more information - Department of Transportation and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 Note: Berjaya Corporation (Malaysia) is making a feasible research. 5.3 Project name: Monorail No.3 5.3.1Objective - Public transportation to reduce the pressure of traffic jam. 5.3.2Location - District 12, Go Vap District. 5.3.3 Scale - Route: Go Vap Roundabout Quang Trung Software Park Tan Thoi Hiep Station. - Estimated number of stations: 12 - Length: 8.5 km 5.3.4The investment capital - USD 390 million 5.3.5 Investment form - Bot or Bt 5.3.6 Contact for more information - Department of Transportation and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street District 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 Note: Berjaya Corporation (Malaysia) is making a feasible research.

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Chapter 6 WATER Until June 2008, the water supply development for the city was achieved 1,230,300 m3/day and the water pipeline web was 160,182m. The existing water supply system just adapts to the need of 1 million m3/day whereas the citys real demand is about 1.4 million m3/day. The slow adjustment of the master plan of water supply impacts the development of water supply. The current water supply system is old, insufficient and incomplete, so the ratio of water loss is still high and water is not pure, especially at water sources. Water Source Planning Exploiting Dong Nai, Sai Gon rivers and Dong canal, Cu Chi; and underground water sources Water source: -Dong Nai river: 1,500,000 m3/day -Saigon river: 600,000 m3/day -Dong canal: 200,000 m3/day Underground source: Exploiting 200,000 m3/day, including: -150,000m3/day for current urban area - 50,000 m3/day for Cu Chi area

East Tan Hie Bin h

Thu Duc

A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them.

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No.

Project name

Specification and objective

6.1 6.2

Expanding Thu Duc water plant phase IV Building water transfer and Ho Chi Minh City level 1 network in the period of 2010-2020

- Estimated capacity: 300,000 m3/day. + To supplement water system for Ho Chi Minh city - To build water transfer pipe system and level 1 network: 90 km + To guarantee to safe operation and supply clean water.

Investme nt Capital (USD mil) 1,650 2,820

Form of investment Joint venture ODA

6.3

6.4

Expanding Thu - To build a new clean water pump station with Duc water plant the capacity of 500,000 m3/day phase v - To build clean water tank with capacity of 300,000 m3/day + To supplement water system for the city - Estimated capacity:12.5 km 2000. Repairing and + To guarantee for safe operation and supply improving the clean water existing clean water 2000 pipe system Saigon river water supply system phase 2 (Tan Hiep 2 water plant) - Estimated capacity:300,000 m3/day + To supply water to districts in the western and east west of the city.

2,500

joint - venture

200

ODA

6.5

1,000

Joint - venture

6.1 Project name: Expanding Thu Duc Water Plant Phase Iv 6.1.1 Project developer - Saigon Water Corporation 6.1.2Current condition - It is no need to build clean water tank, thanks to using the existing one. - There is a big trouble in clearing the security corridor of raw water and clean water pipe system built from 1965. - It is difficult in clearing land to build D.2,400 raw water transfer system from Hoa An to Thu Duc. 6.1.3 Objective - To supplement water system for Ho Chi Minh city. 6.1.4 Capacity, location, total area - Estimated capacity: 300,000 m3/day. - Location: Thu Duc district Ho Chi Minh city. - Total area:0.7 ha 6.1.5 Technology - Technological system as same that of Thu Duc 3 Water Plant - Construction in the area of Thu Duc Water Plant
Vietnam Infrastructure development in Ho Chi Minh City 44

6.1.6 Total investment capital, form of investment, time of investment - Total investment capital: VND1,650 billion - Form of investment: joint venture - Time of investment: 2011-2014 6.1.7 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval (group A project) 6.1.8 Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division 6.2 Project name: Building water transfer and Ho Chi Minh city level 1 network in the period of 2010-2020 6.2.1 Project developer - Saigon Water Corporation 6.2.2 Requirement and current condition - Requirement: guarantee to supply 100% need of clean water for Ho Chi Minh citizens. - Current condition: + to build new pipe systems + difficult to build pipe systems through canals and connection. 6.2.3 Objective - To guarantee to safe operation and supply clean water. 6.2.4 Capacity, location, total area - Estimated capacity: + to build water transfer pipe system and level 1 network: 90 km + to build step up substation and reserve tank in An Phu Tay( Binh Chanh district) and Long Thoi( Nha Be district) + To build connection points to restructure the network - Location: in Ho Chi Minh city. 6.2.5Technology and condition - To clear land and residential resettlement for 2 areas to locate step up substation and reserve tank. - To clear land to build pipe systems. 6.2.6 Total investment capital, form of investment, time of investment - Total investment capital: VND2,820 billion - Form of investment: ODA capital - Time of investment: 2010-2020 6.2.7 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division 6.3 Project name: Expanding Thu Duc Water Plant Phase V 6.3.1 Project developer - Saigon Water Corporation 6.3.2 Current condition - To build a new clean water pump station with m3/day. - To build clean water tank with capacity of 300,000 m3/day

the

capacity

of

500,000

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There is a trouble in clearing security corridor of raw water and clean water pipe systems built from 1965 to serve for development projects. - Difficult in clearing land to build D.2,400 raw water transfer system from Hoa An to Thu Duc. 6.3.3 Objective - To supplement water system for Ho Chi Minh city 6.3.4 Capacity, location, total area - Estimated capacity: 500,000 m3/day. - Location: Thu Duc district, Ho Chi Minh city. - Total area: 2.5ha 6.3.5 Technology and condition - Technological system as same that of Thu Duc 3 Water Plant. - Construction in the area of Thu Duc Water Plant (clearing space of residential houses of Thu Duc Water Plant.). 6.3.6 Total investment capital, form of investment, time of investment - Total investment capital: VND2,500 billion - Form of investment: joint venture; Time of investment: 2020-2024 6.3.7 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division 6.4 Project name: Repairing And Improving The Existing clean water 2000 pipe system 6.4.1 Project developer - Saigon Water Corporation 6.4.2 Requirement and current condition - To serve for projects of expanding Thu Duc Water Plants 3,4,5. 6.4.3 Objective - Guarantee for safe operation and supply clean water 6.4.4Capacity, location, total area - Estimated capacity:12.5 km 2000. - Location: Thu Duc district, Ho Chi Minh city. 6.4.5 Technology and condition - To clear land to guarantee pipe system security for repairing and improvement 6.4.6 Total investment capital, form of investment, time of investment - Total investment capital: VND200 billion - Form of investment: ODA capital - Time of investment: 2010 6.4.7 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval - Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division

6.5 Project name: Saigon river water supply system phase 2 (Tan Hiep 2 water plant) 6.5.1 Project developer - Saigon Water Corporation 6.5.2 Requirement and current condition
Vietnam Infrastructure development in Ho Chi Minh City 46

Requirement: increasing water supply capacity to meet the demand of clean water usage of Ho Chi Minh city in period of 2014-2020. - Current condition: Saigon water system project has been planned for a long time ago, and all necessary conditions are available for carrying out. 6.5.3 Objective - Construction and installation of Saigon river water supply system phase 2 with capacity of 300,000m3/day to supply water to districts in the western and east west of the city. 6.5.4 Capacity, location, total area - Estimated capacity:300,000 m3/day - Location: Cu Chi commune, Ho Chi Minh city 6.5.5 Total investment capital, form of investment, time of investment - Total investment capital:(not including clean water system built by Kenh Dong Water Supply J.S Company): VND1,000 billion - Form of investment: joint venture - Time of investment: 2011-2014 6.5.6 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval - Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division -

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Chapter 7 ENVIRONMENT AND WASTE MANAGEMENT

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There are about 2,000km of sewers in Ho Chi Minh city. Of which, the Ho Chi Minh City Service Of Communications And Public Works controls 1,000 km of drains level 2 and 3; and remains belong to the management of local authorizations. The citys dredge system had been built for a long time and has just been expanded recent years. However, because of the rapid urbanization, leveling ponds for building residential areas, the lack of dredging sewers, lakes as well as the high population and the sense of human beings in throwing garbage to drains, pools, canals the living environment is polluted. In addition, the inundation often happens when it rains or even no rain, but high flood tide. Waste mostly has not been treated before running to sewers. Even though the city also invests some projects to reduce overflow, inundation has not been changed much, even worst. Here are a project financed by the World Bank and schemes calling for attention of investors. A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them. No. Project name Investme nt Capital (USD mil) - To sustainable improvement in public health, financed and the well being of the citys population. by WB + To protect environment, to split mud during the treatment of clean water before letting it out to sewers. + To collect and treat waste water of clean water treatment plants of the Thu Duc water plant area. * Treating water waste in West Saigon basin + Collecting and treating water waste in West Saigon basin * Reforming canal and roads along the canal + Remodeling technical area along the canal banks and building roads along the canal * Water waste treatment Tham Luong Ben Cat + Drainage of rain water waste water, antiinundation and water waste treatment in Tham Luong-Ben Cat basin . * Environmental sanitary in Tan Hoa-Lo Gom basin + Improving the basin environment *Building a water waste colleting system and treatment plant in Tan Hoa Lo Gom basin + Collecting and treating living water waste in the area + Improving environment quality in the basin 200 Specification and objective Form of investment

7.1 7.2

HCMC environmental sanitation Mud treatment area of Thu Duc water plant Drainage and pollution treatment in Tham Luong Ben Cat Nuoc Len canal

ODA

7.3

2,720 6,880

Bot

Bt 3,200 Bot 2,720 Bt

7.4

Collecting and treating waste water , and improving environment quality in Tan Hoa-Lo Gom basin and areas along the canal

5,040 Bot

7.1 Project name: Ho Chi Minh City Environmental Sanitation (Nhieu Loc Thi Nghe Basin) Financed By The World Bank

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7.1.1Brief introduction of the project and its objectives The Ho Chi Minh City Environmental Sanitation Project will lead to sustainable improvement in public health, and the well-being of the city's population, through improved reduction in wastewater pollution, and in flood occurrences, as a result of institutional efficiency in the management of drainage, and wastewater services. The two components are: 1) Construction of the Nhieu Loc Thi Nghe wastewater interceptor, to divert dry weather wastewater flows to the screening/pumping facility. In addition, combined sewer overflow structures will divert wastewater flows into the interceptor during dry weather. However, to mitigate the accumulated, odorous waters from the canal during rising tides, a canal flushing mechanism will be installed, drawing canal waters to the sewage interceptor, through withdrawal chambers located in the canal embankment, operated through automatic modes controlled from the pumping station. This pumping station will have hydraulic capacities, and is located at the confluence of the canal, and the Saigon River, with a river outfall discharge. 2) Drainage works to replace, and extend combined sewers to reduce overflows of storm-water, and wastewater. Includes dredging works for sludge transportation and disposal; cleaning inspection of secondary sewers; and, construction of tertiary sewers. Equipment will be procured to support institutional strengthening, and maintenance functions. 7.1.2 Project at a glance o Approval date: 20 March 2001 o Closing date: 31 Dec 2009 o Total project cost: USD 199.96 million o Region: East Asia and Pacific o Major sector: Water, sanitation and flood protection (sewerage)(60%) Water, sanitation and flood protection (sanitation)(33%). Public administration, law, and justice(Central govern. administration)(7%) o Implementing agency: Nhieu Loc Thi Nghe Project management Unit Floor 8, 35 37 Ben Chuong Duong Street, Nguyen Thai Binh Ward District 1- Ho Chi Minh City Tel: 84-8-39151153 7.2 Project name: Mud Treatment Area Of Thu Duc Water Plant 7.2.1 Project developer - Saigon Water Corporation 7.2.2 Requirement and current condition - Requirement: guarantee to meet the hygiene quality of waste water for letting it out directly to Suoi Cai complied with the current Vietnam standard - Current condition: having compensation plan for project land. 7.2.3 Objective - To protect environment, to split mud during the treatment of clean water before letting it out to sewers. - To collect and treat waste water of clean water treatment plants of the Thu Duc water plant area. - Current objective (phase 1): To collect and treat waste water of the two plants: the existing Thu Duc water plant with clean treatment capacity of 750,000 m3/day and BOO Thu Duc water plant with clean treatment capacity of 300,000 m3/day (2008) as the above criteria. 7.2.4 Capacity, location, total area - Estimated capacity: 1,300,000 m3/day and increasing to 2,150,000 m3/day. - Location: Thu Duc district Ho Chi Minh city; - Total area:10 ha 7.2.5 Condition - Processing to do investment plan report 7.2.6 Total investment capital, form of investment, time of investment - Total investment capital: VND200 billion - Form of investment: ODA capital
Vietnam Infrastructure development in Ho Chi Minh City 50

- Time of investment: 2009-2011 7.2.7 Procedures and contact - Procedures of the project investment: doing Investment Project Report for approval - Contact: Saigon Water Corporation No.1 Cong Truong Quoc Te, District 3 Ho Chi Minh city. Tel: (84-8) 38291777 Person in charge: Mr.Ha Thanh Trung Chief of Business Co-operation Division 7.3 Project: Drainage and pollution treatment in Tham LuongBen CatNuoc Len Canal 7.3.1Treating waste water in West Saigon basin 7.3.1.1 Objective: Collecting and treating water waste in West Saigon basin 7.3.1.2 Location: District 12 and Binh Chanh District 7.3.1.3 Scale: - Coverage: 1,400ha - Building sewers grades 2 and3: 63km - Building main sewer: 33km - Transitional sewer: 3km - Transitional pump station: 2 t (86m3/minute) - Treatment plant: 111,000m3/day-night - Area of the plant: 11ha 7.3.1.4 Total investment: VN$2,720 billion (170 million USD) 7.3.1.5 Form of investment: Bot 7.3.1.6 Priority level: 1 7.3.2Reforming canal and roads along the canal 7.3.2.1.Objective: Remodeling technical area along the canal banks and building roads along the canal 7.3.2.2.Location: District 12 7.3.2.3.Scale: - Coverage: 14,900ha - Building embankments on both sides of the canal with total length of 60km - Building roads and a park along the canal with total length of 60km - Building sluice-gates to control tide: 2 units (gate width: 30m and 40m) - Reforming canal grade 2: 40km - Reforming sluice grade 3: 600km 7.3.2.4 Total investment: VN$6.880 billion (430 million USD) 7.3.2.5 Form of investment: Bt (using land along the canal banks) 7.3.2.6 Priority level: 1 7.3.3 Waste water treatment Tham Luong Ben Cat 7.3.3.1 Objective: Drainage of rain water waste water, anti-inundation and water waste treatment in Tham Luong-Ben Cat basin 7.3.3.2 Location: District 12 7.3.3.3 Scale - Coverage: 1.200ha - Surrounding sewerage: 10km - Transitional sewers: 1km - Transitional pump station: 50m3/minute - Treatment station: 131,000m3/day-night - Area of the treatment station: 11ha 7.3.3.4 Total investment: VN$3,200 billion (200 million USD) 7.3.3.5 Form of investment: Bot (volume of water waste after treatment) 7.3.3.6Priority level: 1
Vietnam Infrastructure development in Ho Chi Minh City 51

7.3.3.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 7.4 Project Name: Collecting & Treating Water Waste From Living Activities In The Area, Improving Environment Quality In Tan Hoa-Lo Gom Basin And Areas Along The Canal * Main purpose: -To collect and treat household sewage and improve environment quality of Tan Hoa Lo Gom canal basin and canal banks. 7.4.1 Environmental sanitary at Tan Hoa-Lo Gom basin 7.4.1.1 Objective: Improving the basin environment 7.4.1.2 Location: Binh Chanh District 7.4.1.3 Scale: - Dredging canals to facilitate the drainage - Building a new 3.1-km sewer 7.4.1.4 Total investment: VN$2,720 billion (170 million USD) 7.4.1.5 Form of investment: Bt (using land along the canal) 7.4.1.6 Priority level: 1 7.4.2. Building a waste water colleting system & treatment plant at Tan HoaLo Gom basin 7.4.2.1 Objective: - Collecting and treating living water waste in the area - Improving environment quality in the basin 7.4.2.2 Location: Binh Chanh District 7.4.2.3 Scale - Building a surrounding sewer system D2000 (4,165m long) along the canal - Building a transitional water waste pump station on an area of 5,000 sq.m in a lower section of Tan Hoa-Lo Gom canal bordering Nguyen Van Luong Street, District 6. Capacity of the pumping station: 339,130m3/day-night - Building a pipeline 2D1400 (10km long) - Building a water waste treatment plant. Capacity: 242,000m3/day-night 7.4.2.4 Total investment: VN$5,040 billion (315 million USD) 7.4.2.5 Form of investment: Bot 7.4.2.6 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188

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Chapter 8
POWER

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Power need for Ho Chi Minh city will be raised to 100 billion kWh in 2025, about 5.3 times in comparison with the current demand. Currently, the thermo-electric and hydroelectric plants in Ho Chi Minh region can not satisfy the power need, so it is necessary to build more power plants. With 500 kV net, besides the two current 500 kV stations, it is essential to build more 500 kV stations: Cau Bong, Thu Duc Bac, Cu Chi. The total power of the 500 kV stations is 9,000 MVA. With 220 kV net, there are 6 current 220 kV stations, and it is required to build more 19 stations with the capacity of 18.750 MVA. With 110 kV net, there are 42 current stations with the capacity of 3,480 MVA and it is required tobuild more 110 kV stations to reach the capacity of 19,200 MVA in 2025. However, Mr. Tuyen the manager of the International Cooperation department of the city electric company the organization managing projects related to electricity development in the city, said the company would like to have favored loans for new substations as well as transmission lines, but nothing or no project in detail. Moreover, according to this person, about bidding opportunities, since they regularly used fairly simple spare parts which could be produced in Vietnam, he was afraid of that there were not many chances for foreign partners.

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Chapter 9 PORTS Next year, 5 ports inside Ho Chi Minh city have to be relocated to new locations outside the city, including Tan Cang port, Ba Son shipbuilding plant, Saigon port, Tan Thuan Dong port, and VICT port. However, according to the consulting unit, only one out of five can complete moving. The two main reasons of this problem are their difficulties in capital and clearance work at new places. Currently, Saigon port can cover those troubles and is building wharves and infrastructure at Hiep Phuoc. To its plan, in April 2009, a 200m-depth wharf will be built for serving vessels of up to 50,000 DWT (dead weight ton). The new plan not only resolves the limited size, obsolete facilities and traffic issues, but also becomes more efficient as the new port complex is located conveniently among the regions industrial parks and export processing zones of Ho Chi Minh City, Binh Duong, Dong Nai, and Ba Ria Vung Tau. About Ba Son shipbuilding plant, they also completed clearance work at Phu My Ba Ria Vung Tau province. In here, a new wharf and dock will be built to serve for 70,000 DWT ships and to repair 150,000 DWT boats. Tan Thuan Dong port is asking for documents to release land at Hiep Phuoc to set up a new port. Before that, Tan Thuan Dong port got the permission to get land at Cat Lai, but then, another investor had this area. Therefore, it will take some years to complete moving Tan Thuan Dong to the new place. With VICT, nothing changes because they suggest to continue keeping the existing port; or else, to ask for permission to build commercial buildings and a trading center. While other ports are preparing to establish new ones, Tan Cang has brought 2 new port zones in operation at Cat Lai. Therefore, they just need to set up one container port at Cai Mep Ba Ria Vung Tau province in order to be able to receive vessels of up to 80,000 DWT. According to the approved plan, those 5 ports have to be relocated to new places before 2010, but the time can be lasted longer than the expectation. A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them. No. Project name Specification and objective Investme nt Capital (USD mil) 405 50 81 387 Form of investment Bot Bot, Bt cooperation or j.venture joint - venture

9.1 9.2 9.3 9.4

Hiep Phuoc residential port Nhon Duc river port Phu Dinh port Can Gio shipyard

- Solving the serious overloaded of the existing port system in HCMC. - To increase shipping capacity via river port to develop waterway transportation of the city - To construct the port river into a focal point of domestic transportation -To construct a shipyard for building and repairing ships

9.1 Project name: HIEP PHUOC residential port 9.1.1 Brief information Hiep Phuoc residential port at Nha Be district is an important project. The total area of the port will be 336.24 hectare with a 5,000 minlength wharf. After its completion (from 2009 to 2012), its capacity will be 200 million tons per year, solving the serious overloaded of the existing port system in Ho Chi Minh City with the current capacity of 40 million tons per year only.
Vietnam Infrastructure development in Ho Chi Minh City 55

9.1.2 Investment capital Costs for dredge are huge, up to 280 million USD. Moreover, there is a need of more than 2,000 billion VND in order to invest in infrastructure and to make clearance of 1,000 hectare. 9.1.3 Investment form: Bot. 9.1.4 Investor Tan Thuan Industry Promotion Company was entrusted to negotiate with Dubai World Corporation to establish a joint -venture for the effective exploitation of 2,000 hectare at the Hiep Phuoc Residential Port Complex. 9.1.5 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 Or The investor: Tan Thuan Industry Promotion Company Ben Nghe Street, Tan Thuan Dong Ward, District 7 Ho Chi Minh city Tel: 84-8-37700653 Fax: 84-8-37700661 9.2 Project name: Nhon Duc river port 9.2.1 Objective - To increase shipping capacity via river port to develop waterway transportation of the city. 9.2.2 Location - Nha Be district 9.2.3 Scale - Total area: 50ha - Length of landing pier; 910m estimated. - Loading capacity: ships of up to 750 DWT - Shipping capacity: 1.2 million tons/year 9.2.4 The investment capital - USD50 million 9.2.5 Investment form - Bot,Bt 9.2.6 Priority level: 1 9.2.7Contact for more information - Department of Transport and Urban Public Works (Hochiminh city Peoples Committee) 63 Ly Tu Trong Street, Distric 1 Ho Chi Minh city Vietnam Tel: (84-8) 38292188 9.3 Project name: Phu Dinh port (stage 2) 9.3.1Objective - To construct Phu Dinh port river into a focal point of domestic transportation between Ho Chi Minh city and the eastern and western provinces of the South and as a waterway transit center for cargo, passengers and services. 9.3.2 Location - District 8 9.3.3 Scale - Total area: 50ha in stage 2 9.3.4 The investment capital - USD81 million 9.3.5Investment form - Cooperation or joint - venture
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9.3.6 Project period: 2009-2011 9.3.7Contact for more information - Saigon Transportation Mechanical Corporation - SAMCO 262 Tran Hung Dao Street, Distric 1 Ho Chi Minh city Vietnam Tel: 84-8- 39200408 Fax: 84-8-39201876 Person in charge: Ms. Thanh Dung Manager of Planning and Investment Division 9.4 Project name: Can Gio shipyard 9.4.1Objective - To construct a shipyard for building ships of more than 20,000DWT and to repair ships up to 50,000 DWT. 9.4.2 Location - Binh Khanh commune, Can Gio district Ho Chi Minh city. 9.4.3 Scale - Total area: 150ha 9.4.4The investment capital - USD 387 million 9.4.5 Investment form - Cooperation or joint - venture 9.4.6 Project period: 2008-2010 9.4.7 Current condition - To complete measurement to perform compensation, site clearance and leasing land. 9.4.8 Contact for more information - Saigon Transportation Mechanical Corporation - SAMCO 262 Tran Hung Dao Street, Distric 1 Ho Chi Minh city Vietnam Tel: 84-8- 39200408 Fax: 84-8-39201876 Person in charge: Ms. Thanh Dung Manager of Planning and Investment Division

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Chapter 10 AIRPORT According to a report in the Vietnam News Service dated December 25, 2008, Prime Minister Nguyen Tan Dung approved loans for acquisition and construction of a new airport to serve Ho Chi Minh City and neighboring provinces. The new Long Thanh International airport permitted by the Prime Minister will replace the current Tan Son Nhat airport to serve Ho Chi Minh City's growing travel requirements. The new airport will be built in Dong Nai Province and will receive 70%of its capital from the State and the remaining 30% from strategic foreign partners and other stakeholders. The new Long Thanh International Airport will encompass an area of 5,000 ha in Doing Nai 's Long Thanh District and represent a total investment of over US$8 billion. The new airport is expected to be competitive with other major airports in the region but no definite date of completion has yet to be noted. Originally, the French Colonial government constructed a small-unpaved airport, known as Tan Son Nhat Airfield in the village of Tan Son Nhat. By mid-1956, United States foreign aid built a 7,200foot runway and the facility became South Vietnam's Airport. On December 9, 2004, United Airlines became the first U.S. airline to fly to Vietnam since Pan Am's last flight during the Fall of Saigon. In 2005, this airport served approximately 7 million passengers (of the total 14 million passengers in Vietnam's airports). Tan Son Nhat International Airport has recently accounted for nearly two thirds of the international arrivals and departures in Vietnam's all airports. Due to the increasing demand (about 15% per annually), this airport has been continuously expanded and will be replaced by a new big international airport in Long Thanh Dong Nai province like mentioned above.

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PART IV: UNIVERSITIES There are many good universities in Vietnam. However, because the scope of this report is about the infrastructure in Ho Chi Minh city, so we just introduce universities in the city that are necessary for the report. The city is also considered an educational center in Vietnam since most big universities and training centers are in the city. In this report, we just recommend 2 reputable public universities which the courses of civil engineering and urban planning and architecture are offered. They are University of Architecture and Ho Chi Minh city University of Technology. UNIVERSITY OF ARCHITECTURE Address: 196 Pasteur Street, Ward 6, District 3 Tel: 84-8-38222748 Web: www.hcmuare.edu.vn University of Architecture was established in 1976. After a long time of development, University of Architecture has become a training and scientific study center to supply manpower in the fields of ArchitectureConstructionIndustrial Arts for the modernization and industrialization of the Southern of Vietnam. Yearly, there are 500 graduated students and about 90% of graduated students have jobs relevant to their study. Regarding international relations, the university has just got some cooperation projects in scientific study and technology transfer with some international organizations, such as the project of planning urban environment sponsored by EEC. Their exchanging programs are still waiting for the approval of the Ministry of Educating and Training. 1/The Architecture Department Tel: 84-8-38222748. (Ext:147) - The faculty has main duties of training students to be civil engineers who can make engineering designs of public works, industry and civil. Currently, there are 50 permanent lecturers and 16 temporary contract teachers. For more information, please contact following responsible persons Full name Position Mobile Email 1 Le Thanh Son Dean 0903702761 thanhsonkkt@yahoo.com 2 Pham Phu Cuong Vice Dean 0908419333 cuongkientruc@yahoo.com 3 Ho Dinh Chieu Vice Dean 0903738156 hdchieu72@yahoo.com 2/The Department Of Civil And Industry Construction Tel: 84-8-38222748(Ext:133) - There are 4 main groups, including applied mechanics, work structure, foundation and the work execution. - For more information, please contact following responsible persons 1 2 Full name Nguyen Khac Man Tran Thach Linh Position Dean Vice Dean Mobile 0913512513 0945453917 Email nguyenkhacman@edu.vn

3/The Urbanization Department Tel: 84-8-38222748(Ext:127) - Urbanization is a special sector relating to social issues, the economy of ecological environment of the urban. Urbanization helps to look for good solutions for the urban development harmonically and stably. - For more information, please contact following responsible persons Full name Position Mobile Email 1 Nguyen Thanh Ha Dean 0903816208 ngtha151@yahoo.com

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2 3

Hoang Ngoc Lan Le Anh Duc

Vice Dean Vice Dean

0903942198 09037724641

hoangngoclan@hcmuarc.edu.vn leanhduc@hcmuarc.edu.vn

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY Address: 268 Ly Thuong Kiet Street, Ward 14, District 10 Tel: 84-8-38652442 Web: www.hcmuare.edu.vn Ho Chi Minh City University of Technology (HCMUT) is the leading university in teaching and research activities in Vietnam. The university has been played an active role in the fields of talents cultivation and providing manpower with strong technical skills to the Southern areas of Vietnam . HCMUT is a center of technology - industry and management training. Graduate students from HCMUT have strong professional skills. Its training activities have made remarkable contribution to satisfy the requirements of manpower for the industrialization and modernization in Vietnam generally and Southern Vietnam areas particularly. Moreover, HCMUT is also the science research and technology transfer center which plays a key role in providing information and applying advanced technologies of developed countries and transferring to concerning industries in the Southern areas of Vietnam. Up to May 2005, HCMUT has 11 faculties, 10 science research and industry transferring centers, 4 training centers, 10 functioning offices and one limited company. During the past 30 years since the Liberation of South Vietnam and country unification, 45,000 engineers and Bachelors have graduated from our university. Since 1994, 20,000 Bachelors of Science, 1,503 Masters and 25 Doctors have been trained, and many of them are either keeping management roles or leading experts in stateowned or foreign-investment enterprises of different industries in Ho Chi Minh City and other southern provinces. More than 60% of graduated students have jobs relevant to their study. Exchanging programs with foreign universities started in 1992. Establishing with foreign universities in the world helps the university to quickly access advanced technology of those universities in training good and modern knowledge for teaching staff, to improve its training quality, as well as to diversify educating methods to adapt to high demands of the society. That is why they now have exchanging programs with many foreign universities, such as with Latrobe, Queensland, Griffith, Adelaide (Australia), Maastricht (Holland), Japanese Advanced Institute of Science and Technology. * The Civil Engineering Department Tel: 84-8- 38650714 The history of the Faculty of Civil Engineering can be traced back to the College of Civil Engineering, which was originally founded in 1911 at Hanoi but was then located at Phu Tho National Technical Center (Saigon) in 1957. It was the only college training technical personnel in the field of civil engineering in South Vietnam before 1975. After the country re-unification in 1975, the college was reorganized as a faculty of Ho Chi Minh City University of Technology. The Faculty continues to be an excellence academic center in the field of Civil Engineering in Vietnam. The seven major fields of study are: + Civil and Industrial Structures + Bridge and Highway + Ports and Maritime + Construction Materials + Water Resources + Surveying and Mapping + Land Administration

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* For more information, please contact following responsible persons 1 Full name Hoang Nam Position Vice Dean Mobile 0988328836 Email nam@bridge.t.u-tokyo.ac.jp

PART V: RELEVANT AUTHORITIES Investment & Trade Promotion Centre of Ho Chi Minh City - ITPC ITPC, or the Investment & Trade Promotion Centre of Ho Chi Minh City is a governmental agency specialized in facilitating investment and trade. The ITPC, formerly known as FTDC, is now one of the two organizations in Vietnam which have been recognized as a trade promotion organization and included in the Profiles of Trade Promotion Organizations published by the International Trade Centre/UNCTAD/WTO (ITC) and the Directory of Trade and Investment-related Organizations of Developing Countries and Areas in Asia and the Pacific by the ESCAP/UN. Missions and Visions Our mission is to promote the growth of Ho Chi Minh Citys enterprises and foreign investors. With the networks to over 20 international BSO partners, we offer services to help enterprises export, develop business capabilities, find overseas partners, enter new markets, and to help foreign investors develop their projects in Vietnam. In the 21st century, we focus on promoting foreign direct investment into Ho Chi Minh City and helping small to medium size Vietnamese enterprises maximize their global export potential. Profile Name: Established: Representative: Address: Tel: Fax: Email: Website : Investment & Trade Promotion Centre of HCMC (ITPC) 1982 Tu Minh Thien, President 51 Dinh Tien Hoang Street, District 1, Ho Chi Minh City, Vietnam 84-8- 38236738 84-8- 38242391 itpc@hcm.vnn.vn http://www.itpc.hochiminhcity.gov.vn/ Department of Planning and Investment of Ho Chi Minh City -DPI Missions and Functions The Department of Planning and Investment -DPI is under the authority of the Peoples Committee of HoChiMinh City. The major role is to develop socio-economic plan development of HoChiMinh City for short term period. In addition, one of its major tasks is to promote and support foreign investment into the city. More specifically DPI: Recommend investment targets to the Citys government on a yearly basis Assist investors in filing their investment applications if requested. Profile Name: Department of Planning and Investment of HCMC (DPI)

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Representative: Address: Tel: Fax: E-mail: Website:

Thai Van Re, President 32 Le Thanh Ton St., Dist 1., Ho Chi Minh City, Vietnam 84-8- 38294988 84.8- 38295008 - or 38290817 ipdpi@hcm.vnn.vn http://www.dpi.hochiminhcity.gov.vn/ Department of Transport And Urban Public Works

Missions and Functions The Department is a specialized unit of Ho Chi Minh city People's Committee, responsible for transportation and public works projects in Ho Chi Minh City. The Department is under the direct management of the People's Committee and takes instruction and guidance in special affairs of the Ministry of Transportation and the Ministry of Construction. Profile Name: Department of Transport And Urban Public Works Representative: Tran Quang Phuong, President Address: 63 Ly Tu Trong St., Dist 1., Ho Chi Minh City, Vietnam Tel: 84.8- 38290451 or 38237439 Fax: 84.8- 38290458 E-mail: sgtvt@hcm.vnn.vn Website: http://www.sgtvt.hochiminhcity.gov.vn/

Department of Construction Missions and Functions The Department of Construction is a specialized unit of the People's Committee, it assists the People's Committee in implementing State administration of the construction field; building industrial and civil works, materials production and design and master plan for urban and rural construction at all levels, branches, economic partners and organizations and domestic and foreign individuals according to policies and the legal frameworks of the government and the Ministry of Construction. The Department is under the direct management of the People's Committee and takes instruction and guidance in special affairs of the Ministry of Construction. The Department is authorized by the People's Committee to direct the management of enterprises and organizations involved construction. Profile Name: Representative: Address: Tel: Fax : E-mail: Website: Department of Construction of HCMC Nguyen Tan Ben, President 60 Trng nh Str, Dist 3, Ho Chi Minh City, Vietnam 84-8- 3932 5345 84-8- 3932 5269 sxd@tphcm.gov.vn http://www.constructiondpt.hochiminhcity.gov.vn/
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Department of Zoning and Architecture Missions and Functions The Department is a specialized unit of the People's Committee, responsible for managing construction zoning and cities architecture. The Department is under the direct management of the People's Committee and takes instruction and guidance in special affairs of the Ministry of Construction. Profile Name: Representative: Address: Tel: Fax: E-mail: Website: Department of Zoning and Architecture of HCMC Tran Chi Dung, President 168 Pasteur St., Dist. 1, Ho Chi Minh City, Vietnam 84-8- 38232917 (84.8) 38232918 sqhkt@tphcm.gov.vn http://www.qhkt.hochiminhcity.gov.vn/ Department of natural resources and environment Missions and Functions The Department of Natural Resources and Environment is an agency under the People's Committee, responsible for state management on land, water, minerals, environment, meteorology and map surveying in the city following legal regulations. Profile Name: Representative: Address: Tel: Fax : E-mail: Website: Department of natural resources and environment Dao Anh Kiet, President 63 Ly Tu Trong Str, Dist 1, Ho Chi Minh City, Vietnam 84-8- 38293661 84-8- 38231806 stnmt@tphcm.gov.vn www.donre.hochiminhcity.gov.vn/

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PART VI: CONCLUSIONS The Vietnamese Prime Minister, Mr. Nguyen Tan Dung, pledged that Vietnam will provide the best environment possible for investors and investors rights would be ensured and protected in accordance with the Constitution and the law. Efforts to streamline and increase transparency in procurement procedures are under way, in co-operation with major multi- and bi-lateral donors. Vietnam is now a market economy and a formal member of the United Nations, the World Trade Organization, the Asia-Pacific Economic Co-operation and the Association of South East Asia Nations. Its stable political situation and other important factors have provided a good environment for economic development, especially in the foreign-invested and private sectors. The average yearly rate of economic growth has been 7.5 per cent in the period between 2003 and 2008, although both in 2008 and 2009 there has been a clear slow-down, caused by the global financial crisis but, according to some observers, also by some bottlenecks in the countrys infrastructure and availability of specialized workers and office staff. All this notwithstanding, licensed foreign direct investment into Vietnam amounted to more than Usd 60 billion in 2008, a record amount. As mentioned above, Vietnams robust economic growth is accompanied by an urgent need for good transportation networks and other infrastructure. The Government, as reported by the Director of the Foreign Investment Agency Mr. Phan Huu Thang, considers the completion of a modern transport infrastructure system as one of the key missions of Vietnams Government. Given that the Government is making a special effort to overcome the slow-down in the economy, that the pressure on the existing infrastructure is still very high and that a cautious but steady opening to private investment in public utilities and works is taking place, it seems that now it is a very good time for Italian contractors, banks and other services and goods suppliers to consider participating in infrastructure projects in Vietnam. Ho Chi Minh city is the biggest city and economic center in Vietnam. As mentioned in this report, here many infrastructure projects in different sectors have been identified and actively proposed to foreign investors and contractors. The wealth of data presented here confirms that the city is one of the best starting points for Italian companies willing to enter the Vietnamese market for infrastructure construction and/or management. When either investing and/or bidding for internationally tendered contracts it is necessary to carefully assess economic conditions and project-level data and information and to find a reliable local partner, all tasks in which the Italian trade commission can prove very resourceful. The Ho Chi Minh City office of the Italian trade commission sincerely hopes that this report can stimulate further analysis and elaboration on the part of Italian concerned companies and stands ready to follow-up on their needs and comments with more information and/or assistance services. Italian companies and individuals are invited to direct their queries to the address mentioned below. Italian Institute for Foreign Trade Long Thinh Office Building - Unit 301 11 Doan Van Bo street Ward 12 - District 4 Ho Chi Minh City Vietnam phone +84 8 38269646 fax +84 8 38269647 e-mail hochiminh@ice.it website (ITA) http://www.ice.it/paesi/asia/vietnam/index.htm (ENG) http://www.italtrade.com/vietnam

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