DECISION

APPROVING THE DETAILED MASTER PLAN ON THE SEAPORT GROUP IN SOUTHEAST VIETNAM (GROUP 5) THROUGH 2020, WITH ORIENTATIONS TOWARD 2030

THE MINISTER OF TRANSPORT

Pursuant to the November 26, 2003 Construction Law; Pursuant to the June 14, 2005 Maritime Code of Vietnam;

Pursuant to the Government’s Decree No. 51/2008/ND-CP of April 22, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

Pursuant to the Government’s Decree No. 92/2006/ND-CP of September 7, 2006, on elaboration, appraisal, approval and management of socio- economic development master plans, and Decree No. 04/2008/ND-CP of January 11, 2008, amending and supplementing a number of articles of Decree No. 92/2006/ND-CP;

Pursuant to the Prime Minister’s Decision No. 2190/QD-TTg of December 24, 2009, approving the master plan on development of Vietnam’s seaport system through 2020, with orientations toward 2030;

Pursuant to the Government Office’s Notice No. 132/TB-VPCP of June 2, 2011, on conclusions of Prime Minister Nguyen Tan Dung at a cabinet meeting on implementation of the detailed master plan on Group 5 of seaports;

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At the proposal of the standing body of the Appraisal Council and the director of the Planning and Investment Department,

DECIDES:

Article 1. To approve the detailed master plan on the seaport group in Southeast Vietnam (Group 5) through 2020, with orientations toward 2030, with the following principal contents:

1. Scope of the master plan Group 5 consists of seaports in coastal provinces and a city in the southeastern region, including Ho Chi Minh City, and Dong Nai, Ba Ria - Vung Tau and Binh Duong provinces, and ports on Soai Rap river in Long An and Tien Giang provinces.

2. Development viewpoints and objectives a/ Development viewpoints:

- To utilize and bring into full play natural and social conditions of the region for developing seaports in Cai Mep - Thi Vai, Ben Dinh - Sao Mai and Hiep Phuoc areas and such potential locations as Long Son… so as to efficiently exploit land areas for building ports, raising the capacity to accommodate large-tonnage ships and promoting the potential of international transshipment of group-5 seaports.

- To develop seaports of Group 5 in combination with synchronous connection of road, railway and internal waterway infrastructure facilities, creating a driving force and promoting the development of coastal economic zones and urban centers and large industrial parks in Ho Chi Minh City, Dong Nai, Ba Ria - Vung Tau, Binh Duong and Binh Phuoc provinces and adjacent provinces. To harmoniously develop special-use wharves for bulky or liquid goods, farm produce,… so as to handle various kinds of goods of the whole region.

- To reserve land and water surface areas for planning the development of general and container wharves or wharves for special-use goods in service of the whole region.

- To intensify the application of advanced and modern technologies to management and operation of seaports, first of all, large ones in Cai Mep -Thi Vai (Ba Ria - Vung Tau), Cat Lai and Hiep Phuoc (Ho Chi Minh City), to raise the operation efficiency and meet socio-economic development requirements of the southern dynamic economic region.

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- To mobilize to the utmost all social resources, especially from the private sector and foreign direct investment for developing seaports and seaport common-use infrastructure facilities.

- To develop ports in a sustainable manner, associating port development with environmental protection and protection of the natural ecosystem and avoiding bad impacts on social and daily-life activities of inhabitants in the region. The development and operation of regional seaports must be associated with the protection of the eco-environment in Ganh Rai bay, Can Gio submerged eco-forests and submerged forests along Thi Vai river, avoiding bad impacts on tourism potentials of Ho Chi Minh City and Vung Tau city.

- To develop seaports to meet also security and national defense requirements.

b/ Development objectives and orientations

- General objectives:

+ To rationally locate seaports in the group so as to promote their combined efficiency; and at the same time to create a balanced and synchronous development of seaports and infrastructure facilities related to their zone of attraction, and combine seaport development with industrial and service development to create a driving force for economic development, security and national defense.

+ To meet the requirements for relocating the port system on Sai Gon river and Ba Son shipyard in order to reduce the traffic flow and congestion in downtown Ho Chi Minh City.

+ To support the development of industrial parks and export processing zones in the region and concurrently facilitate the urban development in order to accelerate the regional industrialization and modernization from now through 2020, with orientations toward 2030.

+ To form and develop modern international gateway ports and regional major ports to follow the development trends of Vietnam’s and the world’s ocean shipping industry, attracting part of cargoes transshipped through the region.

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+ To ensure a cargo throughput at the planning points of time as follows:

. 169 - 200 million tons/year by 2015;

. 235 - 317 million tons/year by 2020;

. 393 - 681 million tons/year by 2030;

Of which, the container cargo throughput at the planning points of time are as follows:

. 7,563 - 9,563 thousand TEU/year by 2015;

. 12,125 - 17,995 thousand TEU/year by 2020;

. 23,370 - 46,229 thousand TEU/year by 2030;

And the number of seaborne passengers to arrive at these seaports at the planning points of time are as follows:

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. 418.1 - 539,4 thousand arrivals/year by 2020;

. 917,1 - 1,335.8 thousand arrivals/year by 2030;

+ To accommodate seagoing ships of the following types: sundry and bulky cargo ships of between 10,000 and 60,000 DWT, container ships of an equivalent tonnage of between 10,000 and 100,000 DWT, crude oil tankers of up to 300,000 DWT, oil product tankers of between 10,000 and 50,000 DWT, and passenger ships of between 50,000 and 100,000 GRT.

3. Contents of the master plan

a/ Detailed planning of seaports in the group

Group 5 consists of three seaports: Vung Tau seaport (including also Con Dao seaport), Dong Nai seaport (including also Binh Duong wharf area) and Ho Chi Minh City seaport (including also wharf areas of Long An and Tien Giang provinces on Soai Rap river).

- Ho Chi Minh City seaport: This is a national and regional major general seaport (class I), which consists of the following main wharf areas: the wharf area on Sai Gon river; Cat Lai wharf area on Dong Nai river; the wharf area on Nha Be river; Hiep Phuoc wharf area on Soai Rap river; and the wharf areas in Long An and Tien Giang provinces on Soai Rap river.

The seaport’s projected cargo throughput by 2015, 2020 and 2030 will reach around 91.843 - 100.465, 105.825 - 132.57 and 160.133 - 271.289 million tons/year, respectively, of which container cargo volume will be around 4.183 - 4.908, 4.844 - 6.976 and 8.557 - 17.576 million TEU/year, respectively.

The number of international passengers expected to arrive at the seaport by 2015, 2020 and 2030 will reach 164.2 - 200.5, 202.8 - 261.5 and 444.7 -647.7 thousands/year, respectively.

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+ The wharf area on Sai Gon river: This area consists of 11 wharves/piers for ships of between 20,000 and 30,000 DWT. This wharf area will be relocated and have its utilities transformed under the Prime Minister’s Decision No. 791/QD-TTg of August 12, 2005. Khanh Hoi wharf will be partially transformed into a domestic passenger landing stage and a maritime service center. Wharves not to be relocated will only be renovated and upgraded.

+ Cat Lai wharf area (on Dong Nai river): This area consists of 9 wharves/piers for ships of up to 30,000 DWT. This is the major container wharf area of the seaport in the near future.

+ Nha Be wharf area (on Nha Be river): This area consists of 10 wharves/piers for ships of between 20,000 - 30,000 DWT. The wharves on Nha Be river are planned to be renovated and upgraded (not expanded) for ships of up to 30,000 DWT. A new passenger landing stage will be built in Phu Thuan (downstream Phu My bridge) for ships of 50,000 GRT.

+ Hiep Phuoc wharf area (on Soai Rap river): This is the major wharf area of the seaport in the future, mainly to handle general and container cargoes for ships of 50,000 DWT and container ships of 4,000 TEU. It will have several special-use wharves for ships of between 20,000 - 30,000 DWT to directly serve adjacent industrial establishments.

+ Long An and Tien Giang wharf areas (on Soai Rap river): This areas have wharves functioning as general cargo, oil and gas service and LPG special-use wharves which can accommodate ships of up to 50,000 DWT or larger tonnage suitable to their channels’ capacity.

- Dong Nai seaport: This is a national and regional major general seaport (class I), which consists of the following functional wharf areas: Long Binh Tan and Binh Duong wharf areas (on Dong Nai river); Phu Huu wharf area (on Dong Nai river and Long Tau - Nha Be river), Ong Keo wharf area (Long Tau river and Dong Tranh river); Go Dau and Phuoc An wharf areas (on Thi Vai river).

The port’s projected cargo throughput by 2015, 2020 and 2030 will reach around 19.663 - 21.135, 43.186 - 53.111 and 71.763 - 112.992 million tons/year, respectively, of which container cargo volume will be around 620 - 775, 2,280 - 2,850 and 4,413 - 7,543 thousand TEU/year, respectively.

Detailed planning of main functional wharf areas is as follows:

+ Phuoc An and Go Dau wharf areas (on Thi Vai river): This is the major wharf area of the seaport, mainly accommodating general and container ships of up to 60,000 DWT (Phuoc An) and 30,000 DWT (Go Dau), and having several special-use wharves which can accommodate ships of between 6,500 - 12,000 DWT in direct service of adjacent industrial establishments.

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+ The wharf area on Dong Nai river: This area consists of wharves for general, container and bulky cargo ships of up to 5,000 DWT and special- use wharves for ships of 1,000 DWT in Long Binh Tan area (Dong Nai province) and Binh Duong port for ships of up to 5,000 DWT.

- Vung Tau seaport: This is a national and international gateway general seaport (class IA), which consists of the following main functional wharf areas: Go Dau and Tac Ca Trung wharf areas; Phu My and My Xuan wharf areas; Cai Mep and Sao Mai-Ben Dinh wharf areas; Long Son wharf area; Vung Tau - Dinh river and Con Dao wharf areas.

The port’s projected cargo throughput by 2015, 2020 and 2030 will reach around 57.257 - 78.043, 85.669 - 131.088 and 161.491 - 296.291 million tons/year, respectively, of which container cargo volume will be around 2.76 - 3.88, 5.001 - 8.169 and 10.4 - 21.11 million TEU/year, respectively.

The number of seaborne international passengers expected to arrive at the seaport by 2015, 2020 and 2030 will reach 174.4 - 213.1, 215.4 - 277.9 and 472.4 - 688.1 thousand arrivals/year, respectively.

Detailed planning of main functional wharf areas is as follows:

+ Go Dau and Tac Ca Trung wharf areas: This area is for general and container ships and can accommodate ships of up to 30,000 DWT.

+ Phu My and My Xuan wharf areas (Thi Vai river): These areas are for handling general and container cargoes of ships of between 50,000 and 80,000 DWT or between 4,000 and 6,000 TEU. To further study the possibility of renovating and expanding channels to accommodate ships of between 60,000 and 120,000 DWT (loading capacity of between 4,000 and 10,000 TEU) in Phu My and ships of up to 60,000 DWT in My Xuan. These areas have several special-use wharves to serve industrial and service establishments.

+ Cai Mep and Sao Mai - Ben Dinh wharf areas: These areas are major wharf areas of the seaport, mainly for handling container cargoes exported or imported on ocean shipping routes and attracting international transshipment containers. Cai Mep area will accommodate ships of between 80,000 and 100,000 DWT (loading capacity of between 4,000 and 10,000 TEU). To further study the possibility of renovating channels to accommodate ships of over 100,000 DWT in Cai Mep. Sao Mai - Ben Dinh area will accommodate container ships of between 80,000 DWT (loading capacity of 6,000 TEU) and over 100,000 DWT and have landing stages for international tourists carried by ships of up to 100,000 GRT.

+ Long Son wharf area: This area functions as a special-use wharf area of the petrochemical complex having a terminal to receive crude oil for ships of 300,000 DWT and a wharf of between 30,000 and 50,000 DWT for import of other materials and export of products. The southeastern coastline section of the area will be reserved for building a general wharf for long-term development of the region.

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+ Con Dao wharf area: This area functions mainly as a general cargo wharf and a passenger landing stage for Con Dao, which can accommodate ships of between 2,000 and 5,000 DWT. A maritime and oil and gas service wharf will also be built for ships of up to 10,000 DWT.

b/ Orientations for the planned relocation in subsequent periods

A main road linking ports along Saigon river from Tan Phu My bridge to Cat Lai, Thu Duc, Long Thanh, Vung Tau and Dong Nai industrial parks will be built. As a result, these ports will continue operating like at present and will only be studied for relocation after 2020 if necessary.

(A detailed list of seaports in the group and their sizes and functions and locations and scopes of logistics centers is specified in the Appendix and the master plan dossier attached to this Decision, not printed herein).

c/ Solutions to moored wharves

The location of moored wharves on channels is just temporary to meet practical needs in the near future in areas where conditions do not permit the building of solid wharves. Therefore, the building of moored wharves must be incorporated in the development planning and suitable to operations of solid wharves. When the construction of solid wharves is completed, investors of moored wharves shall remove these moored wharves as required to assure safe and effective operation of solid wharves.

d/ Planned renovation and upgrading of channels

- Saigon - Vung Tau channel: To renovate some bending sections, maintain a depth and a maritime signaling system of Long Tau channel for ships of 30,000 DWT which can enter and leave the seaport all the day on the high tide.

- Soai Rap channel: From now to 2015, this channel will accommodate fully loaded ships of up to 30,000 DWT and partially loaded ships of 50,000 DWT. In subsequent periods, to consider dredging the channel for fully loaded ships of up to 50,000 DWT and partially loaded ships of over 50,000 DWT.

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- Cai Mep - Thi Vai channel: To study and determine the largest tonnage of ships which can enter wharf areas in the coming period. Projected ship tonnage which can be accommodated by wharf areas are as follows:

+ Cai Mep wharf area: For ships of between 80,000 and over 100,000 DWT and container ships of between 4,000 and 8,000 TEU;

+ Phu My wharf area (Thi Vai): For ships of between 60,000 and 100,000 DWT and container ships of between 4,000 and 8,000 TEU;

+ Phuoc An and My Xuan wharf areas: For ships of up to 60,000 DWT;

+ Go Dau wharf area: For ships of up to 30,000 DWT.

+ Dinh river channel (from buoy zero to VietsovPetro port): To maintain the conditions for stable operation for ships of 10,000 DWT.

e/ Priority projects through 2015

- Port access channels:

+ Cai Mep - Thi Vai: channel: To comprehensively study the channel section for ships of over 100,000 DWT entering Cai Mep wharf area; ships of up to 100,000 DWT to enter wharves of Phu My area; ships of up to 60,000 DWT entering wharves of My Xuan and Phuoc An areas; and for ships of up to 30,000 DWT entering wharves of Go Dau area.

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- Wharves:

(1) For general and container wharves

+ Vung Tau international wharves in Sao Mai - Ben Dinh: These wharves are mainly for international container transshipment for ships of between 80,000 DWT (6,000 TEU) and over 100,000 DWT.

+ Lower Cai Mep general and container wharves: These wharves accommodate ships of between 80,000 DWT (6,000 TEU) and over 100,000 DWT.

+ Hiep Phuoc downstream wharf area: This is the major general and container wharf area of Ho Chi Minh City which can accommodate ships of up to 50,000 DWT (4,000 TEU) and may be upgraded to accommodate ships of over 50,000 DWT to suit the development of channels.

(2) For special-use wharves

+ To invest in a special-use wharf area for Long Son petrochemical refinery: This area is exclusively for crude oil, oil products and imported materials.

- Port-linking roads

+ National highway 51 (Dong Nai - Ba Ria-Vung Tau): To complete the upgrading and expansion of this national highway to link Cai Mep - Thi Vai port system with the regional transport network.

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+ Phu Huu - Ong Keo (Dong Nai) inter-port road: To invest in this road in order to accelerate the formation and development of Phu Huu - Ong Keo wharf area.

+ Provincial road 25B to Cat Lai port (Ho Chi Minh City: To complete the upgrading and expansion of this road to link Hanoi expressway with Cat Lai wharf area.

+ Road to wharves in Hiep Phuoc area: To continue investing in and completing the North-South axial road to Hiep Phuoc area and trunk roads in Hiep Phuoc industrial park linking to wharves.

+ Roads linking to Long An and Tien Giang wharf areas: To study the building of roads linking to Long An and Tien Giang wharf areas.

4. Policies, mechanisms and solutions for implementation

a/ Regarding investment in port development in general

- To step up mobilization of all social resources for investment in developing seaport infrastructure facilities in the forms of PPP, BOT, BT,… To intensify investment promotion, encourage and create favorable conditions for all economic sectors at home and abroad to invest in developing seaports in the prscribed forms.

- To concentrate state budget sources on investing in public infrastructure facilities (navigable channels and breakwaters for common use) connected to important seaports. Wharf infrastructure facilities will be built with funds lawfully mobilized from enterprises. All infrastructure and port- linking infrastructure facilities of seaport and wharves recommended by investors, including general wharves, will be built with capital raised by these investors themselves.

- To study and permit on a pilot basis foreign partners to invest in loading and unloading equipment and hire other entities to operate port infrastructure facilities invested with domestic capital (associated with transfer of advanced technologies).

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- To step up the building of wharves and wharf areas for common use in economic zones and industrial parks so as to promote the investment efficiency and use of natural resources in the coastline for building seaports. To reserve land areas for port development, each of a width of 500 - 700 meters along big rivers with potential for port development (Cai Mep - Thi Vai, Soai Rap, Long Tau, Nha Be, Dong Nai,…). To reserve appropriate land areas behind seaports for building goods distribution centers with logistic functions.

- To further step up administrative reform in the management of investment and operation of seaports toward simplicity and modernity; to study and apply on a pilot basis the model of “port management office” at seaports where conditions permit; to facilitate the location of working offices of maritime port authorities and specialized state management agencies in new port areas in order to ensure prompt state management at seaports; and to encourage investors in economic zones and industrial parks to invest in seaport infrastructure and port-linking infrastructure facilities.

b/ Mechanisms and policies for and organization of the planned relocation

- Mechanisms and policies for and organization of the planned relocation of ports on Saigon river and Ba Son shipyard shall continue complying with the Prime Minister’s Decision No. 791/QD-TTg of August 12, 2005 and other relevant directing documents.

- Capital amounts obtained from transformation of utilities, conversion of land use rights and sale of workshops and other works shall be used under the Prime Minister’s Decision No. 74/2005/QD-TTg of April 6, 2005, on use of proceeds from the transfer of land use rights, sale of workshops and other works upon relocation of economic organizations’ offices, production or business establishments under the master plan, and the Prime Minister’s Decision No. 46/2010/QD-TTg of June 24, 2010, promulgating the financial regulation applicable to the relocation of ports on Saigon river and Ba Son shipyard.

- Other regimes and policies (land rents, taxes, use of preferential credit loans,…) for to-be-relocated enterprises comply with current regulations.

In case of necessity, problems arising in the course of relocation must be reported to the Steering Committee for implementation of the plan on relocation of ports on Saigon river and Ba Son shipyard for settlement or to the Prime Minister, for issues beyond local authorities’ competence.

c/ Mechanisms to promote internationally transshipped cargoes

For Vung Tau seaport with the role of an international gateway seaport of class 1A in the South Vietnam, in addition to its principal function of handling exports and imports on ocean shipping routes of the whole South Vietnam, it is necessary to study and acquire fundamental conditions of infrastructure, management and operation, financial, banking and other specialized services for raising competitiveness, attraction and handling of internationally transshipped cargoes of the region.

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1. The Vietnam Maritime Administration shall:

- Coordinate with provincial-level People’s Committees and related agencies in publicizing and managing the implementation of the approved master plan.

- Report to the Ministry of Transport for consideration and decision on addition and adjustment of functions and sizes of seaports and wharves.

- For potential seaports and wharves: Summarize and report on practical needs and proposals of investors and provincial-level People’s Committees to the Ministry of Transport for consideration and decision.

- Annually coordinate with local administrations and related agencies in inspecting the implementation of the master plan, reviewing and proposing measures to handle projects implemented not under the master plan, and reporting them to the Ministry of Transport.

- Assign the Vietnam Maritime Administration to study a general mechanism for management, operation and development of infrastructure facilities and other related services in order to attract internationally transshipped cargoes for Cai Mep and Sao Mai - Ben Dinh wharf areas, enabling them to compete with international transshipment ports in the region.

2. Ministries, sectors and provincial-level People’s Committees shall:

- Direct investors in formulating projects to build, renovate and upgrade seaports and navigable channels in line with the approved master plan and in accordance with current regulations on construction investment management.

- Provincial-level People’s Committees shall base themselves on the approved master plan to closely manage and use for proper purposes land areas reserved for building seaports; arrange land areas for synchronous development of seaports and port-linking infrastructure facilities, service areas behind seaports, logistic and maritime service areas in order to assure favorable conditions for seaport operation; and coordinate with the Ministry of Transport in organizing harmonious traffic, ensuring that port- linking traffic does not conflict with urban traffic.

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+ For wharf areas and wharves for different types of cargoes and built by different investors: Provincial-level People’s Committees shall direct functional agencies in working out and submitting detailed master plans to the Vietnam Maritime Administration for appraisal and reporting to the Ministry of Transport for consideration and approval.

+ For other wharf areas and wharves: Provincial-level People’s Committees shall direct investors or functional agencies in working out and submitting detailed master plans to the Ministry of Transport and the Vietnam Maritime Administration for study and updating in the detailed master plan on the seaport group, and manage these master plans.

Article 3. This Decision takes effect on the date of its signing.

Article 4. The director of the Office, the Chief Inspector, directors of the departments, the Ministry of Transport, the director of the Vietnam Maritime Administration, and heads of related organizations and related individuals shall implement this Decision.-

MINISTER OF TRANSPORT




Ho Nghia Dung