Minister Dinh La Thang envisions a modern transport infrastructure system in 2020

Nhat Tan Bridge, a new transport project completed in 2014, helping reduce travel time between central Hanoi and Noi Bai Airport

Q: Could you please tell us about the how the challenges facing the transport sector were turned into opportunities for action in 2014?

A: The global economic crisis began in 2008 and soon spread to the whole world, devastating the financial system and sparing no country. Three years later when I took the helm at the Ministry of Transport, the global economic downturn had led to profound consequences. In order to reduce the pressure on budget deficit and inflation, the Government quickly adopted a resolution on key measures to curb inflation, stabilise the macroeconomy and ensure social security. One of the additional measures was cutting public investment. Hundreds of transport projects were scrapped, suspended or had their deadlines extended because there was a shortage of funds.

On the other hand, under Party resolutions on building a synchronous transport infrastructure system to make Vietnam a modern industrialised nation in 2020, the transport sector was tasked with modernising the infrastructure as a precursor for national modernisation. We were placed in a tricky situation since we had to cut budget spending while still having to ensure that the plan was implemented as outlined.

These challenges presented us with no choice but to adapt quickly to the situation. A series of measures were introduced to restructure the sector in line with the new reality, such as formulating and perfecting mechanisms, policies and laws on transportation to enhance the effectiveness of our tasks. First we needed to arrange new sources of capital for unfinished and new projects due to budget cuts. Nothing can be done when lacking capital. We overcame this difficult situation with a broad range of measures including mobilising more social resources and diversifying forms of investment. For the first time, we proposed selling operating rights of a number of projects to domestic and foreign partners to secure funds for other important projects. The Government approved this motion, the public showed their support and everything has been going smoothly. Another measure is scrapping over-diversification and focusing on key projects.

The Ministry of Transport also advised the Government to introduce a flexible compensation regime for site clearance with regards to the interests of displaced people. Thus site clearance delays have been gradually reduced, thereby enhancing the effectiveness of investment capital.

Q: It is common that many transport projects require repairs soon after they are put into use. After one project is repaired, another one is found to be damaged. Do you have any measures to address this issue?

A: It is a reality that we have to face, the occupational risks that no one wants. There are some objective and unavoidable reasons such as cracks in the Noi Bai-Lao Cai Expressway. Some are caused by errors made during construction, supervision and disregard for harsh weather conditions. Some are caused by negligence when a project goes into operation, such as repeatedly allowing overloaded vehicles to use a road. However when these incidents happen, I allow no room for excuses; I do not allow my subordinates to blame others and evade responsibility. I also don’t accept citing similar incidents in other countries to show that Vietnam is not an exception, even if it may be true. My view is that all parties involved in construction must be held responsible, so that no matter what, they have to do everything possible to resolve the incidents or minimise their impacts. In fact, the Ministry of Transport has been implementing a wide range of measures to prevent such incidents including holding individuals accountable, introducing disciplinary action for slow progress, and issuing regulations on specific tasks and rights of project management units (PMU) on build-operate-transfer and build-transfer projects. Since the start of 2014, the Ministry of Transport has severely disciplined 42 contractors, 12 engineering design units, 16 supervision consulting units and five PMUs for incidents related to quality and progress. I hope that these aggressive measures will gradually reduce incidents that cause public concern and anger.

Q: In Vietnam there are still eight inland districts where people have to use ferries to get to district centres, and 11 island districts without roads connecting them with the mainland. And in many places residents still have to rely on rudimentary vehicles to cross the rivers. What is the Ministry of Transport doing to address this issue?

A: Among the eight mainland districts you mention, road and bridge projects are being implemented in five districts to connect the centre with their surrounding areas. For the remaining three districts, one still has to use ferries to get to the district centre. The Ministry of Transport will work with local authorities to mobilise resources to build bridges to replace the ferry services, conditions permitting.

As the one taking the highest responsibility for the country’s transport, poor transport infrastructure in a number of regions has been the daily concern of mine and my colleagues. Although the Government has earmarked large resources for rural transport infrastructure development, the limited budget cannot cover every project. These issues cannot be addressed by the Ministry of Transport alone. However, we are doing our best to overcome this situation as soon as possible.

Q: I learned that the Ministry of Transport has targeted that in 2020 Vietnam will have a modern and sustainable transport system. What will it look like?

A: With this rapid growth, the country looks very different after just one year. Five years ago, not many, even those who are highly imaginative, were optimistic enough to foresee the current transport system in terms of road, air and waterway travel. The growth rate of Vietnam’s airline industry is considered one of the fastest in the region, compared with five years ago when it was even not included in the rankings. The past five years have seen Vietnam’s transport infrastructure jump 29 notches on a ranking by the World Economic Forum. This is an achievement of the entire country, not only the transport sector.

In the year ahead, with the economic picture forecast to be brighter, changes to the transport system will surely be even faster than expected. So to answer your question, I can only say this: based on the transport sector’s restructuring plan towards 2020 already approved by the prime minister, Vietnam’s railway, sea and waterway transport, especially along main transport corridors, will be significantly improved to reduce pressure on the current road, waterway and air transport system so that the transport structure will become more appropriate, economical, effective and professional than present.

Thank you very much!

NDO