BMI Vietnam Infrastructure Report Q2 2014.pdf

Q2 2014www.businessmonitor.com

VIETNAMINFRASTRUCTURE REPORTINCLUDES 10-YEAR FORECASTS TO 2023

ISSN 1750-5593Published by:Business Monitor International

Vietnam Infrastructure Report Q22014INCLUDES 10-YEAR FORECASTS TO 2023

Part of BMIs Industry Report & Forecasts Series

Published by: Business Monitor International

Copy deadline: January 2014

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CONTENTS

BMI Industry View ............................................................................................................... 7

SWOT .................................................................................................................................... 9Infrastructure SWOT .................................................................................................................................. 9

Industry Forecast .............................................................................................................. 11Construction And Infrastructure Forecast Scenario ........................................................................................ 11

Table: Vietnam Construction And Infrastructure Industry Data, 2012-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Table: Vietnam Construction And Infrastructure Long-Term Forecasts, 2018-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Table: Factbox - Key Elements Of Vietnam's Revised Land Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Transport Infrastructure - Outlook And Overview .......................................................................................... 23Table: Vietnam Transport Infrastructure Industry Data, 2012-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Table: Vietnam Transport Infrastructure Long-Term Forecasts, 2018-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Table: Competitiveness Of Vietnam's Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Table: Vietnam Railway Corporation's Main Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Major Projects Table - Transport .............................................................................................................. 42Table: Major Projects - Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Energy And Utilities Infrastructure - Outlook And Overview ............................................................................ 58Table: Vietnam Energy & Utilities Infrastructure Industry Data, 2012-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Table: Vietnam Energy & Utilities Infrastructure Industry Long-Term Forecasts, 2018-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Major Projects Table - Energy & Utilities ................................................................................................... 75Table: Major Projects - Energy & Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Residential/Non-Residential Building - Outlook And Overview ......................................................................... 93Table: Vietnam Residential And Non-residential Building Industry Forecasts, 2012-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Table: Vietnam Residential And Non-residential Building Long-Term Forecasts, 2018-2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Major Projects - Residential/Non-Residential Construction And Social Infrastructure ..................................... 101Table: Major Projects - Residential/Non-Residential Construction And Social Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Industry Risk Reward Ratings ........................................................................................ 105Vietnam - Infrastructure Risk/Reward Ratings ............................................................................................. 105Vietnam Risk/Reward Ratings ................................................................................................................. 105Rewards ............................................................................................................................................ 105Risks ................................................................................................................................................ 106

Asia - Infrastructure Risk/Reward Ratings .................................................................................................. 107Table: Asia Pacific Infrastructure Risk Reward Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Market Overview ............................................................................................................. 116Competitive Landscape ........................................................................................................................... 116

Table: Vietnam EQS Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Company Profile .............................................................................................................. 117Cavico Corporation ............................................................................................................................... 117Electricity Vietnam Group ....................................................................................................................... 120

Vietnam Infrastructure Report Q2 2014

Business Monitor International Page 4

Global Infrastructure Overview ...................................................................................... 125Africa In 2014: PPPs Cement Global Appeal .............................................................................................. 125Asia-Pacific In 2014: Shaping Up To Be A Benign Year ................................................................................ 130Latin America In 2014: A Prosperous Year For Infrastructure Development ..................................................... 137MENA In 2014: Reaping Rewards Despite Risks .......................................................................................... 140North America And Europe In 2014: Turning A Corner ................................................................................ 145

Methodology .................................................................................................................... 152Industry Forecast Methodology .............................................................................................................. 152Sector-Specific Methodology .................................................................................................................. 153Risk/Reward Rating Methodology ........................................................................................................... 157Sector-Specific Methodology .................................................................................................................. 158

Table: Infrastructure Risk/Reward Rating Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158Table: Weighting Of Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159



BMI Industry View

BMI View: Vietnam's construction sector is in an upward cyclical phase, as evidenced by a real growth

rate of 5.3% y-o-y in the first nine months of 2013. We believe this could continue in 2014 and aremaintaining our growth forecasts of 5.8% for 2014. Easy monetary conditions and greater investmentinterest from foreign sources in Vietnam's construction sector is likely to support growth for the year.Furthermore, the government continues its efforts to restructure state-owned enterprises and improve itsbusiness environment, both of which would level the playing field, free up public funds and improveprofitability, and help to attract additional investment for infrastructure development over the comingyears.

The major developments in Vietnam's infrastructure sector are:

In November 2013, the Vietnamese government approved an amendment in its Land Law (see 'RevisedLand Law A Major Step In Tackling Corruption', December 9 2013). The revised legislation, which willcome into effect on July 1 2014, is aimed at limiting land disputes by prohibiting the government fromappropriating land for socio-economic development unless such projects have been approved by theprime minister and the Vietnamese parliament. We believe this revision is a major step in strengtheningthe regulatory framework and will increase transparency for projects that are implemented under thedirection of the provincial government. It would also help reduce the risk of project delays which havebeen caused by long and costly disputes over compensation.

In October 2013, the Railway Gazette reported that Line 5 of the Ho Chi Minh metro system will befinanced by three international organisations instead of two as previously announced by state officials.The Asian Development Bank, the European Investment Bank and the Spanish government will provideUS$500mn, EUR150mn (US$206mn) and EUR200mn (US$275mn) respectively, to construct in 2015the first 8.9km of the line that is slated to run between Sai Gon Bridge and the Bay Hien Intersection. InOctober 2013, the Vietnamese government granted approval to Hanoi General Export-Import JointStock Company (Geleximco) to withdraw from the build-transfer model-based Hoa Lac-Hoa Binhexpressway linking Hanoi with localities in the northwest. According to the transport ministry, thecompany invested US$17mn in the project, with US$2mn in the construction and US$12.4mn in landacquisition, over three years, but continues to face escalating investment costs which has made it difficultfor the company to reach the project deadline. Instead, the government will now look to alter the project'sinvestment model to public-private partnership to make it more feasible and obtain official developmentassistance to help finance it.

In November 2013, event organiser FDI Vivina announced that Han & Han and Pedco, via a Japanese-Korean joint venture, had plans to construct a US$200mn waste-to-power plant in Hanoi, Vietnam. Theplant, with a daily capacity of 75 tonnes, would generate electricity from 7MW to 9MW and producehigh-value by-products, including raw materials for metal and glass. The plant would treat 100% of thewaste, while controlling and cleaning green house gases and fumes.

In November 2013, Vietnam's Phuong Nam Technology Science Institute and US-based ExecutiveDecision Export Services (EDES) scheduled to sign a memorandum of understanding (MoU) for theconstruction of the US$3.6bn railway project in Vietnam. The project, which will be implemented via abuild, operate and transfer format, is designed to connect Hoi Chi Minh City to Can Tho City using thetechnical standards of a dual high-speed railway grade 1 with international gauge of 1,435mmm. Upon



signing the MoU, a joint venture firm will be formed by both parties, through which the feasibility studiesand project will be executed.

In December 2013, the state utility and monopoly distributor Electricity of Vietnam (EVN) and Japan-based Marubeni Corporation signed an engineering, procurement and construction contract for themain thermal power plant of the Thai Binh Power Station in Vietnam. The project will entail aninvestment of VND26.5trn (US$1.3bn), with 85% of the investment coming from the Japan InternationalCooperation Agency and the remaining 15% of the cost paid by EVN. The construction of the 600MWplant is expected to commence in Q114, with the first plant scheduled to come online in Q417 and thesecond in Q218. The two-turbine plant is projected to generate about 3.3bn kWh every year.

In December 2013, a US$1.5bn contract to construct the 1,200MW coal fired thermal plant - Vinh TanThermal Power Plant No. 4 - in Binh Thuan was awarded to Doosan Corporation, MitsubishiCorporation and two Vietnamese firms, Power Engineering Consulting Joint Stock Company 2 andPacific Corporation. The plant will consist of two 600MW units, and is expected to be completed by2017 and 2018.



SWOT

Infrastructure SWOT

Vietnam Infrastructure SWOT Analysis

Strengths The country's strong project pipeline will sustain growth in the sector and add

capabilities for further development, particularly as transport structure improves.

Rapid growth and firm government commitment has attracted investment from many

of the world's largest infrastructure companies.

The poor state of infrastructure in the country provides easy wins for foreign investors

and construction companies.

A hike in electricity prices should stimulate investment in the energy sector.

Weaknesses State-owned companies dominate the infrastructure market. This is especially the

case in the utilities sector, where Electricity of Vietnam (EVN)'s dominant position has

deterred investors.

Vietnam relies heavily on foreign imports and it is estimated that the country requires

2mn tonnes of steel billets to be imported a year.

The country currently presents a relatively risky environment for major infrastructure

projects, especially in relation to project finance operations.

Power outages are occurring daily in Vietnam, highlighting the country's severe

electricity problems.

Opportunities Demand for urban infrastructure projects in transport and sanitation over our 10-year

forecast period to 2022 will rise, in tandem with urbanisation.

Severe drought is driving demand in electricity generation sources besides

hydropower, such as gas-fired and wind-powered plants.

If the government's attempts to cool the overheating economy are successful,

Vietnam will see a more stable growth trajectory over the long term.



Vietnam Infrastructure SWOT Analysis - Continued

Greater opportunities for public-private partnerships (PPP) - the country is offering the

Dau Giay-Phan Thiet expressway project, the first road project and the largest

infrastructure project to be developed under a PPP format.

Threats A possible shift in the Vietnamese government's focus - from driving economic

growth towards fighting inflation and addressing macroeconomic imbalances - could

have a cooling effect on the sector.

Without foreign capital, public spending cuts and tighter credit conditions are likely to

keep economic activity depressed.

Lack of energy infrastructure holds downside risk to nearly all projects and presents a

significant bottleneck to development.

Should any significant events occur to highlight Vietnam's structural difficulties,

uncertainty and downside risks in the business environment could have a negative

impact.

The EU predicts Vietnam will not become a true market economy until 2018.



Industry Forecast

Construction And Infrastructure Forecast Scenario

Table: Vietnam Construction And Infrastructure Industry Data, 2012-2017

2012 2013e 2014f 2015f 2016f 2017f

Constructionindustry value,VNDbn

179,301.0 191,631.0 213,842.3 238,725.9 265,584.7 295,006.6

Constructionindustry value, US$bn

8.6 9.2 10.4 11.7 13.1 14.8

Constructionindustry, realgrowth, % y-o-y

2.1 5.8 5.8 6.4 6.3 6.2

Constructionindustry, % ofGDP

5.5 5.3 5.2 5.2 5.2 5.2

Total capitalinvestment, VNDbn 785,337.3 871,493.6 1,013,908.7 1,195,195.5 1,393,000.4 1,589,848.1

Total capitalinvestment, US$bn 37.6 41.7 49.3 58.8 68.9 79.5

Total capitalinvestment, % ofGDP

24.2 23.9 24.8 26.1 27.2 27.8

Capital investmentper capita, US$ 414.4 454.8 532.7 629.5 731.6 837.1

Real capitalinvestment growth,% y-o-y

1.9 4.1 10.0 12.0 11.0 8.8

Constructionindustryemployment, '000

3,183.5 3,423.9 3,678.0 3,972.9 4,279.9 4,602.4

Constructionindustryemployment, % y-o-y

2.5 7.5 7.4 8.0 7.7 7.5

Total workforce,'000 64,081.4 64,820.1 65,485.2 66,093.7 66,647.3 67,144.3

Constructionindustryemployees as % oftotal labour force

5.0 5.3 5.6 6.0 6.4 6.9

InfrastructureIndustry Value As 32.7 33.8 33.5 33.1 32.8 32.4



Vietnam Construction And Infrastructure Industry Data, 2012-2017 - Continued

2012 2013e 2014f 2015f 2016f 2017f

% of TotalConstruction

InfrastructureIndustry Value,VNDbn

58,653.2 64,809.3 71,579.7 79,046.8 87,055.0 95,588.8

InfrastructureIndustry Value, US$bn

2.8 3.1 3.5 3.9 4.3 4.8

InfrastructureIndustry Value RealGrowth (%)

0.9 3.9 4.7 5.2 5.1 4.9

InfrastructureIndustry Value as% of GDP

1.8 1.8 1.8 1.7 1.7 1.7

Residential andNon-residentialBuilding IndustryValue As % ofTotalConstruction

67.3 66.2 66.5 66.9 67.2 67.6

Residential andNon-residentialBuilding IndustryValue, VNDbn

120,647.8 126,821.7 142,262.6 159,679.1 178,529.8 199,417.8

Residential andNon-residentialBuilding IndustryValue, US$bn

5.8 6.1 6.9 7.9 8.8 10.0

Residential andNon-residentialBuilding IndustryValue Real Growth(%)

1.0 -1.5 6.4 7.0 6.8 6.8

Residential andNon-residentialBuilding IndustryValue as % of GDP

3.7 3.5 3.5 3.5 3.5 3.5

Cementproduction(includingimported clinker),tonnes

47,900,158.7 49,755,167.9 54,456,929.5 60,661,903.9 67,032,460.9 72,690,571.7

Cementproduction(including importedclinker), tonnes, %y-o-y

1.8 3.9 9.4 11.4 10.5 8.4

Cementconsumption,tonnes

47,137,388.7 48,919,480.7 53,549,192.0 59,675,315.3 65,956,456.5 71,513,269.0



Vietnam Construction And Infrastructure Industry Data, 2012-2017 - Continued

2012 2013e 2014f 2015f 2016f 2017f

Cementconsumption,tonnes, % y-o-y

1.4 3.8 9.5 11.4 10.5 8.4

Cement netexports, tonnes 762,769.9 835,687.3 907,737.4 986,588.7 1,076,004.4 1,177,302.6

Cement netexports, tonnes, %y-o-y

28.3 9.6 8.6 8.7 9.1 9.4

e/f = BMI estimate/forecast. Source: Vietnam General Statistics Office, BMI

Table: Vietnam Construction And Infrastructure Long-Term Forecasts, 2018-2023

2018f 2019f 2020f 2021f 2022f 2023f

Constructionindustry value,VNDbn

327,200.5 362,647.4 401,855.5 444,791.0 492,279.3 544,276.1

Constructionindustry value,US$bn

16.5 18.5 20.7 23.0 25.6 28.4

Constructionindustry, realgrowth, % y-o-y

6.0 6.0 6.0 6.0 6.0 6.0

Constructionindustry, % ofGDP

5.1 5.1 5.1 5.1 5.1 5.0

Total capitalinvestment,VNDbn

1,801,170.7 2,019,760.8 2,260,645.5 2,523,111.0 2,816,049.2 3,139,996.2

Total capitalinvestment, US$bn

91.0 103.0 116.2 130.4 146.3 164.0

Total capitalinvestment, %of GDP

28.2 28.4 28.6 28.8 28.9 29.1

Capitalinvestment percapita, US$

950.6 1,069.0 1,197.5 1,334.9 1,488.7 1,659.4

Real capitalinvestmentgrowth, % y-o-y

8.0 7.0 6.8 6.6 6.6 6.6

Constructionindustry 4,935.6 5,290.0 5,664.5 6,059.7 6,478.0 6,920.2



Vietnam Construction And Infrastructure Long-Term Forecasts, 2018-2023 - Continued

2018f 2019f 2020f 2021f 2022f 2023f

employment,'000

Constructionindustryemployment, %y-o-y

7.2 7.2 7.1 7.0 6.9 6.8

Total workforce,'000 67,594.9 68,011.1 68,401.6 68,772.1 69,122.4 69,448.6

Constructionindustryemployees as% of totallabour force

7.3 7.8 8.3 8.8 9.4 10.0

InfrastructureIndustry ValueAs % of TotalConstruction

32.0 31.6 31.2 30.8 30.4 30.1

InfrastructureIndustry Value,VNDbn

104,761.5 114,611.6 125,304.5 136,917.4 149,642.5 163,654.2

InfrastructureIndustry Value,US$bn

5.3 5.8 6.4 7.1 7.8 8.5

InfrastructureIndustry ValueReal Growth (%)

4.7 4.6 4.5 4.6 4.6 4.8

InfrastructureIndustry Valueas % of GDP

1.6 1.6 1.6 1.6 1.5 1.5

Residential andNon-residentialBuildingIndustry ValueAs % of TotalConstruction

68.0 68.4 68.8 69.2 69.6 69.9

Residential andNon-residentialBuildingIndustry Value,VNDbn

222,439.1 248,035.7 276,551.1 307,873.6 342,636.8 380,621.9

Residential andNon-residentialBuildingIndustry Value,US$bn

11.2 12.7 14.2 15.9 17.8 19.9

Residential andNon-residentialBuildingIndustry ValueReal Growth (%)

6.6 6.7 6.7 6.6 6.6 6.5



Vietnam Construction And Infrastructure Long-Term Forecasts, 2018-2023 - Continued

2018f 2019f 2020f 2021f 2022f 2023f

Residential andNon-residentialBuildingIndustry Valueas % of GDP

3.5 3.5 3.5 3.5 3.5 3.5

Cementproduction(includingimportedclinker), tonnes

78,287,306.3 83,577,075.5 89,075,636.5 94,775,641.8 100,851,881.0 107,329,187.8

Cementproduction(includingimportedclinker), tonnes,% y-o-y

7.7 6.8 6.6 6.4 6.4 6.4

Cementconsumption,tonnes

76,998,573.0 82,162,136.7 87,525,398.5 93,020,216.2 99,001,095.0 105,242,755.6

Cementconsumption,tonnes, % y-o-y

7.7 6.7 6.5 6.3 6.4 6.3

Cement netexports, tonnes 1,288,733.2 1,414,938.8 1,550,238.1 1,755,425.6 1,850,786.0 2,086,432.2

Cement netexports, tonnes,% y-o-y

9.5 9.8 9.6 13.2 5.4 12.7

f = BMI forecast. Source: Vietnam General Statistics Office, BMI

BMI View: The outlook for Vietnam's construction sector continues to be increasingly positive. This isprimarily due to government policy, where the adoption of a loose monetary policy, revisions to theregulatory framework for land acquisition and the restructuring of state-owned enterprises are increasingthe potential for greater construction investment over the coming years. This potential for greaterconstruction activity is reflected in our projections, with our real growth forecasts for the sector revised upto 5.8% in 2014 (previously 5.4%) and averaging 6.2% per annum between 2015 and 2018 (previously6.0%).

Construction activity in Vietnam has continued to recover from the lows of 2011. Latest data from the

Vietnam General Statistics Office reveals that the construction sector grew by 5.8% in real terms in 2013,



faster than the -1.0% and 2.1% print in 2011 and 2012 respectively. This is in line with our view that the

recovery in Vietnam's construction sector will be sustained in the next few quarters.

On The Path To Recovery

Vietnam - Quarterly Construction Industry Value, VNDbn

Source: General Statistics Office, State Bank of Vietnam

Looking beyond 2013, the outlook for Vietnam's construction sector continues to be increasingly positive.

This is reflected in our projections, with our real growth forecasts for the sector revised up to 5.8% in 2014(previously 5.4%) and averaging 6.2% per annum between 2015 and 2018 (previously 6.0%).



Not Like Before

Vietnam Construction (And Sum-Components) Industry Value Forecasts

e/f= BMI estimate/forecast. Source: General Statistics Office, State Bank of Vietnam, BMI

This relatively optimistic outlook is primarily driven by three main factors:

Conducive Monetary Conditions. The government is seeking to boost economic growth and has

maintained its policy rate at 7.00% since May 2013, the lowest policy rate since December 2009. Given the

lagged impact of monetary easing, any positive effects of this easing could last well into 2014. Moreover,

inflation remains relatively benign, leading us to expect the Vietnamese central bank to maintain an

accommodative policy stance throughout 2014 - we are forecasting the benchmark interest rate to remain at

7.00% by end-2014. This should be favourable for construction activity as Vietnamese companies would

benefit from a lower cost of capital - making them more inclined to take up new projects or carry outcapital-intensive construction works - while municipal and provincial governments could also find the

necessary financing for their infrastructure plans.



A Loose Monetary Policy

Vietnam - Policy Rate, % & Headline CPI - Housing & Construction Materials, % y-o-y

Source: General Statistics Office, State Bank of Vietnam

Robust Foreign Direct Investment (FDI) Inflows. Foreign direct investment (FDI) inflows into thecountry have accelerated across 2013. According to the Ministry of Planning and Investment, Total FDI

inflows into Vietnam grew by 54.5% to reach US$21.6bn in 2013, significantly surpassing the government'sfull-year target of US$13bn.

The sharp increase in FDI inflows bodes well for activity in the construction sector. This is because we

believe a sizeable portion of these inflows were channelled into buildings and infrastructure. To be sure, the

real estate achieved the third highest amount of FDI inflows amongst the 18 sectors between January and

November 2013, while 84.1% of Japan's total investment capital into Vietnam, the country's largest foreign

investor, was channelled into manufacturing and processing projects, according to the Ministry of Planningand Investment. Meanwhile, we have seen several agreements signed with Asian companies over the course

of 2013 for the development of transport and power infrastructure projects in Vietnam (see 'High TariffsAnd Deregulation Bearing Fruit', October 17 2013). Financing from European banks - a major source offinance for Vietnamese infrastructure - has also stabilised at a relatively positive growth rate of 6.5% year-

on-year in Q213.



Limited Upside

Vietnam - Foreign Claims From European Banks, US$mn And % chg y-o-y

Source: Bank For International Settlements (January 2014), BMI

Revised Land Law. On November 29 2013, the Vietnamese government approved an amendment in its

Land Law (see 'Revised Land Law A Major Step In Tackling Corruption', December 9 2013). The revisedlegislation, which takes effect on July 1 2014, is aimed at limiting land disputes by prohibiting the

government from appropriating land for socio-economic development unless such projects have beenapproved by the prime minister and the Vietnamese parliament. From our perspective, the revised law is a

major step in strengthening the regulatory framework with regards to land transfer and entitlement whileincreasing the transparency of economic development projects that are implemented under the direction ofthe provincial government. This strengthening of the regulatory framework for land acquisition and

resettlement could help to reduce the risk of project delays that are brought on by long and costly disputesover compensation.



Table: Factbox - Key Elements Of Vietnam's Revised Land Law

The revised Land Law is effective from July 1 2014.

Land is owned by the people and managed by the State.

Land prices are required to be valued by independent agencies based on market prices at the time of assessment aswell as land use purpose and duration.

New provisions provided on issue relating to ownership and usage of land as well as on compensation andresettlement of residents subject to relocation.

The regulation requiring the release of the government's land price list on January 1 of every year is abolished.

The concession for all types of farming land has been increased from 20 to 50 years.

Source: BMI

Non-Residential Sector: Rising Domestic Demand

There are also sub-sectoral factors that are driving our positive outlook for Vietnam's construction sector. In

the non-residential building sector, we have seen a recovery in Vietnam's manufacturing production

activity, with the HSBC Purchasing Managers' Index above 50.0 level since September 2013 (a signal ofexpansion in the manufacturing sector). While we remained concerned about the potential for deteriorationin external trade activity (particularly the potential for a renewed downturn in the Chinese economy), thegrowing domestic demand for manufacturing goods could increase demand for non-residential buildings to

support production activity.



Staying Strong

Vietnam - Purchasing Managers' Index

Source: BMI, Markit/HSBC

Residential Sector: Early Signs Of Recovery

The residential building sector is also showing early signs of improvement (see 'Early Signs Of A Recovery,But No Property Market Boom In Sight', August 14 2013). Although the sector is still suffering fromsignificant oversupply and falling prices, unsold inventory of new residential units have fallen back to more

moderate levels by historical standards. Unsold apartments as a share of total units under construction fell

from 30.3% in Q412 to 27.7% in Q213, while unsold villas and townhouses fell from 54.3% to 10.7% overthe same period. In addition, the rate of decline in housing prices is slowing down, which could indicate

growing demand for property. As the accompanying chart shows, the Vietnam Real Estate Index, which

tracks transaction prices of highly liquid apartments in Hanoi and Ho Chi Minh City, fell by 8.2% y-o-y in

August 2013, significantly lower than the contraction of 15.2% y-o-y in August 2012.



Signs Of Bottoming

Vietnam - Real Estate Index

Source: BMI, Bloomberg

Lastly, the government's plan to increase the supply of social housing to low-and middle-income groups is

accelerating, with several large-scale social housing programmes and projects being implemented. InAugust 2013, the Ministry of Construction announced that there were 50 projects, valued at around US$1bn, registered to convert 34,000 units of commercial houses to social houses.

Infrastructure Sector: Unlocking Capital

In the infrastructure sector, the Vietnamese government is also making progress with the use of public-

private partnerships (PPPs) for infrastructure development. The government launched the initial tenderingstage for its first road PPP project in September 2013 and there could be other infrastructure projects offeredas PPPs over the near term (see 'Skeptical Over Dau Giay-Phan Thiet PPP Timeline', December 6 2013).We have long highlighted that the Vietnamese government does not have sufficient funds to meet the

country's infrastructure needs and the use of PPPs could aid in meeting this deficit (see 'ConstructionRecovery On Track', July 14 2013). According to the Ministry of Planning and Investment, Vietnam will



need US$16-17bn per annum for infrastructure development over the next decade, but the capital raisedfrom traditional channels can only meet 50-60% of the funds needed.

Most importantly, the government has taken an aggressive stance in restructuring its state-owned enterprises

(SOEs, see 'Privatisation of SOEs Highly Positive For The Economy', January 8 2014). We believe thisrestructuring is crucial in unlocking investment for infrastructure development in Vietnam. This is because

it could not only allow the Vietnamese government to raise funds for investment through the privatisation of

these SOEs, but also attract greater FDI due to a less protectionist investment climate. Vietnam's SOEs have

been a leading contributor of the misallocation of capital in the country, due to corruption and a lack of

competition and oversight. This has, in turn, resulted in mounting losses for public sector firms (see 'MoreRestructuring To come For SOEs', September 26 2013). Due to these losses, a number of these SOEs areunable to repay their debts, which the Vietnamese government is obliged to repay. This has undermined the

country's fiscal position and limited the government's ability to finance infrastructure projects.

Transport Infrastructure - Outlook And Overview

Table: Vietnam Transport Infrastructure Industry Data, 2012-2017

2012 2013e 2014f 2015f 2016f 2017f

TransportInfrastructure IndustryValue As % Of TotalInfrastructure

65.5 64.9 64.6 64.4 64.1 63.8

Transport InfrastructureIndustry Value, VNDbn 38,444.5 42,086.3 46,256.9 50,903.2 55,831.7 61,030.7

Transport InfrastructureIndustry Value, US$bn 1.8 2.0 2.2 2.5 2.8 3.1

Transport InfrastructureIndustry Value RealGrowth (%)

-3.9 2.9 4.1 4.8 4.7 4.4

Transport InfrastructureIndustry Value AsPercent Of TotalConstruction (%)

21.4 22.0 21.6 21.3 21.0 20.7

Roads and BridgesInfrastructure IndustryValue As % ofTransport Infrastructure

50.1 50.7 51.2 51.9 52.5 52.8

Roads and BridgesInfrastructure IndustryValue, VNDbn

19,274.3 21,321.2 23,702.6 26,396.8 29,296.8 32,232.9

Roads and BridgesInfrastructure IndustryValue, US$bn

0.9 1.0 1.2 1.3 1.4 1.6



Vietnam Transport Infrastructure Industry Data, 2012-2017 - Continued

2012 2013e 2014f 2015f 2016f 2017f

Roads and BridgesInfrastructure IndustryValue Real Growth (%)

-6.6 4.0 5.4 6.1 6.0 5.1

Roads and BridgesInfrastructure IndustryAs % of TotalInfrastructure

32.9 32.9 33.1 33.4 33.7 33.7

Roads and BridgesInfrastructure IndustryAs % of TotalConstruction

10.7 11.1 11.1 11.1 11.0 10.9

Railways InfrastructureIndustry Value As % ofTransport Infrastructure

24.3 24.1 23.7 23.4 23.0 22.8

Railways InfrastructureIndustry Value, VNDbn 9,343.3 10,143.6 10,978.2 11,886.6 12,844.9 13,911.9

Railways InfrastructureIndustry Value, US$bn 0.4 0.5 0.5 0.6 0.6 0.7

Railways InfrastructureIndustry Value RealGrowth (%)

14.5 2.0 2.5 3.0 3.1 3.4

Railways InfrastructureIndustry As % of TotalInfrastructure

15.9 15.7 15.3 15.0 14.8 14.6

Railways InfrastructureIndustry As % of TotalConstruction

5.2 5.3 5.1 5.0 4.8 4.7

Airports InfrastructureIndustry Value As % ofTransport Infrastructure

9.5 9.1 8.9 8.7 8.4 8.4

Airports InfrastructureIndustry Value, VNDbn 3,643.8 3,836.3 4,129.8 4,409.8 4,712.8 5,097.6

Airports InfrastructureIndustry Value, US$bn 0.2 0.2 0.2 0.2 0.2 0.3

Airports InfrastructureIndustry Value RealGrowth (%)

-23.7 -1.3 1.9 1.5 1.9 3.3

Airports InfrastructureIndustry As % of TotalInfrastructure

6.2 5.9 5.8 5.6 5.4 5.3

Airports InfrastructureIndustry As % of TotalConstruction

2.0 2.0 1.9 1.8 1.8 1.7

Ports Harbours andWaterwaysInfrastructure Industry

16.1 16.1 16.1 16.1 16.1 16.0



Vietnam Transport Infrastructure Industry Data, 2012-2017 - Continued

2012 2013e 2014f 2015f 2016f 2017f

Value As % ofTransport Infrastructure

Ports Harbours andWaterwaysInfrastructure IndustryValue, VNDbn

6,183.1 6,785.3 7,446.4 8,210.0 8,977.3 9,788.2

Ports Harbours andWaterwaysInfrastructure IndustryValue, US$bn

0.3 0.3 0.4 0.4 0.4 0.5

Ports Harbours andWaterwaysInfrastructure IndustryValue Real Growth (%)

-4.6 3.1 4.0 5.0 4.3 4.1

Ports Harbours andWaterwaysInfrastructure IndustryAs % of TotalInfrastructure 10.5 10.5 10.4 10.4 10.3 10.2

Ports Harbours andWaterwaysInfrastructure IndustryAs % of TotalConstruction 3.4 3.5 3.5 3.4 3.4 3.3

e/f = BMI estimate/forecast. Source: Vietnam General Statistics Office, BMI

Table: Vietnam Transport Infrastructure Long-Term Forecasts, 2018-2023

2018f 2019f 2020f 2021f 2022f 2023f

TransportInfrastructure IndustryValue As % Of TotalInfrastructure 63.5 63.2 62.8 62.4 62.0 61.6

Transport InfrastructureIndustry Value, VNDbn 66,546.5 72,393.5 78,680.8 85,464.7 92,838.2 100,764.1

Transport InfrastructureIndustry Value, US$bn 3.4 3.7 4.0 4.4 4.8 5.3

Transport InfrastructureIndustry Value RealGrowth (%) 4.1 4.0 3.9 3.9 3.9 3.9

Transport InfrastructureIndustry Value AsPercent Of TotalConstruction (%) 20.3 20.0 19.6 19.2 18.9 18.5

Roads and BridgesInfrastructure Industry 53.1 53.4 53.7 54.1 54.4 54.7



Vietnam Transport Infrastructure Long-Term Forecasts, 2018-2023 - Continued

2018f 2019f 2020f 2021f 2022f 2023fValue As % ofTransport Infrastructure

Roads and BridgesInfrastructure IndustryValue, VNDbn 35,331.5 38,650.6 42,265.2 46,198.4 50,488.1 55,112.2

Roads and BridgesInfrastructure IndustryValue, US$bn 1.8 2.0 2.2 2.4 2.6 2.9

Roads and BridgesInfrastructure IndustryValue Real Growth (%) 4.7 4.6 4.6 4.6 4.6 4.6

Roads and BridgesInfrastructure IndustryAs % of TotalInfrastructure 33.7 33.7 33.7 33.7 33.7 33.7

Roads and BridgesInfrastructure IndustryAs % of TotalConstruction 10.8 10.7 10.5 10.4 10.3 10.1

Railways InfrastructureIndustry Value As % ofTransport Infrastructure 22.6 22.5 22.4 22.2 22.1 21.9

Railways InfrastructureIndustry Value, VNDbn 15,071.8 16,282.5 17,585.2 18,966.5 20,478.5 22,113.3

Railways InfrastructureIndustry Value, US$bn 0.8 0.8 0.9 1.0 1.1 1.2

Railways InfrastructureIndustry Value RealGrowth (%) 3.4 3.2 3.2 3.2 3.3 3.4

Railways InfrastructureIndustry As % of TotalInfrastructure 14.4 14.2 14.0 13.9 13.7 13.5

Railways InfrastructureIndustry As % of TotalConstruction 4.6 4.5 4.4 4.3 4.2 4.1

Airports InfrastructureIndustry Value As % ofTransport Infrastructure 8.3 8.3 8.2 8.2 8.2 8.2

Airports InfrastructureIndustry Value, VNDbn 5,524.8 5,982.1 6,477.7 7,013.4 7,603.1 8,253.0

Airports InfrastructureIndustry Value, US$bn 0.3 0.3 0.3 0.4 0.4 0.4

Airports InfrastructureIndustry Value RealGrowth (%) 3.5 3.5 3.5 3.6 3.7 3.9



Vietnam Transport Infrastructure Long-Term Forecasts, 2018-2023 - Continued

2018f 2019f 2020f 2021f 2022f 2023f

Airports InfrastructureIndustry As % of TotalInfrastructure 5.3 5.2 5.2 5.1 5.1 5.0

Airports InfrastructureIndustry As % of TotalConstruction 1.7 1.6 1.6 1.6 1.5 1.5

Ports Harbours andWaterwaysInfrastructure IndustryValue As % ofTransport Infrastructure 16.0 15.9 15.7 15.5 15.4 15.2

Ports Harbours andWaterwaysInfrastructure IndustryValue, bn 10,618.4 11,478.4 12,352.7 13,286.5 14,268.6 15,285.6

Ports Harbours andWaterwaysInfrastructure IndustryValue, US$bn 0.5 0.6 0.6 0.7 0.7 0.8

Ports Harbours andWaterwaysInfrastructure IndustryValue Real Growth (%) 3.6 3.3 2.8 2.9 2.7 2.5

Ports Harbours andWaterwaysInfrastructure IndustryAs % of TotalInfrastructure 10.1 10.0 9.9 9.7 9.5 9.3

Ports Harbours andWaterwaysInfrastructure IndustryAs % of TotalConstruction 3.2 3.2 3.1 3.0 2.9 2.8

f = BMI forecast. Source: Vietnam General Statistics Office, BMI

The transport sector forms the bulk of infrastructure investment pipeline in Vietnam across our 10-year

forecast period, expected to account for 60-65% in 2022. In part, this is because the country still suffers

from a significant deficit in transportation infrastructure and we believe the Vietnamese government will

continue to develop this sector over the medium term. As such, we expect the transport infrastructure

industry value to grow by an average of 4.5% year-on-year (y-o-y) between 2014 and 2017.



Table: Competitiveness Of Vietnam's Infrastructure

Rank/133 in

2009/10Rank/139 in

2010/11Rank/142 in

2011/12Rank/144 in

2012/13Rank/148 in

2013/14

Quality of Roads 102 117 123 120 102

Quality of Railroad Infrastructure 58 59 71 68 58

Quality of Port Infrastructure 99 97 111 113 98

Quality of Air Transport Infrastructure 84 88 95 94 92

Quality of Overall Infrastructure 111 123 123 119 110

Source: World Economic Forum, Global Competitiveness Report

Roads Dominant

Transport Infrastructure Value By Industry, VNDbn

e/f = BMI estimate/forecast, Source: Vietnam General Statistics Office, Local news sources, industry sources, BMI (Major Projects

Database)

Roads

Within the transport infrastructure sector, the roads and bridges sub-sector leads in terms of contributions to

total transport infrastructure industry value, accounting for 50% of total value in 2013. Although most of



Vietnam's national road network is paved (only 26%, or 46,650km out of 180,549km, is unpaved as of2008), surveys indicated that approximately 40% of the network is in a poor or very poor condition and willrequire substantial investment to reach a maintainable condition. Indeed, according to the World Bank's

2014 Efficient Logistics report on Vietnam, it cites that higher logistical costs compared to its peers such as

China and Thailand results in higher costs for businesses, and disruptions often force them to hold higher

levels of inventories. Vietnam's Ministry of Transport and Communications has estimated that the country

will require close to US$60bn in the period up to 2020 to fund new road infrastructure projects. Reachingthis investment target will be crucial to Vietnam's long-term economic wellbeing, as roads facilitate the

transport of most freight within the country, with a market share of around 60% of domestic cargo.

Combined with increased traffic levels in Vietnam's urban areas and growing trade volumes to and from the

country, there is a need for roads.

Over the past quarters, there have been several announcements regarding new road projects being planned -such as the Phap Van-Cau Gie highway build-operate-transfer (BOT) project - or being developed inVietnam - such as the expansion of the NH-1A Cam Ranh City-Cam Lam District (Khanh Hoa province)BOT project, the Danang-Quang Ngai expressway and the Ho Chi Minh City (HCMC)-Long Thanh-DauGiay Expressway.

However, there are still ongoing concerns about the viability of toll roads in Vietnam. Since February 2012,

the Vietnamese transport ministry has been unable to find any investor intending to purchase the right to

collect toll fees for the HCMC-Trung Luong expressway (as of August 2013). BIDV ExpresswayDevelopment Company (BEDC) had previously purchased the toll collection right for 25 years, but due tofinancial constraints, the company had returned the project back to the government.

We believe that this lack of investment interest in one of the highways linking Vietnam's most economically

developed cities reflects our concerns about the viability of building toll roads in Vietnam.



Costly To Build

Investment Cost of Expressways In Vietnam, US$mn per km

Source: Vietnam the Business Times (May 3 2012)

Part of this lack of viability is due to the high cost of construction for expressways within Vietnam.

According to an official report from the Ministry of Construction in September 2012, the cost of

constructing an expressway in Vietnam is about 1.5-2.0 times higher than comparable roads in China,

Europe and Africa. The HCMC-Trung Luong expressway, for example, costs around US$9.9mn per km,higher than an average expressway in China (US$6mn/km) and the US (US$8mn/km).

We believe there are several factors contributing to this high construction cost for toll roads:

The lack of project management and technical expertise to complete road projects within budget,resulting in site clearance delays and cost overruns. To resolve this problem, the transport ministry isplanning to classify investors and contractors into three grades, A, B and C, with companies at each gradedeveloping projects of the same grade.

Corruption, with anecdotal evidence suggesting that 30% of a project's value is pocketed by thecontractor in order to pay bribes to relevant parties.

Deficiency in regulations and government institutions that effectively balance the need to safeguard thepublic interest with the need for expeditious provision of land for infrastructure development. The currentregulation - Decree 69/2009/ND-CP - only gives district-level people's committees, not the centralgovernment, the right to hire companies to settle site clearance and compensation issues.



Difficult geological conditions, as most of Vietnam's terrain is uneven.

A lack of specialised government institutions that can mediate between developers and landowners aboutcompensation. Combined with the perceived potential for corruption at the district level, thesedeficiencies do not provide landowners with the assurance that they are receiving the fair amount ofcompensation for their land. As a result, they are unwilling to sell their land, causing delays in siteclearances and cost overruns for road projects. Site clearances have been repeatedly reported by localmedia sources as the key reason for holding up major road projects in Ho Chi Minh City (HCM City),and they include the 14km Tan Son-Nhat Binh Loi outer ring road project, the 245km Noi Bai-Lao Caiexpressway, the 55km HCM City-Long Thanh-Dau Giay Highway and the widening of the HanoiHighway.

At the same time, businesses and commuters are unable to support higher toll rates. Together, these twofactors increase the difficulties for Vietnam to raise financing for several road projects. According to amaster transport plan for HCM City (approved by the government in April 2013), the city will upgrade orexpand five expressways - the HCM City-Long Thanh-Dau Giay expressway, the HCM City-Thu DauMot-Chon Thanh expressway, the HCM City-Moc Bai expressway, the Ben Luc-Long Thanh expresswayand the Bien Hoa-Vung Tau expressway - and build five four-lane flyovers with a total length of 70.7km.To finance these projects, the city will need VND45trn between 2013 and 2015.

To compound the problem, the Vietnamese government is heavily burdened by the debts of its state-owned enterprises (SOEs), and the need to repay this debt is limiting the government's ability to financeinfrastructure projects. For example, Vietnam Expressway Corporation is facing the risk of falling intoinsolvency as it could be unable to pay its bond holders.

To secure financing for road development, the Ministry of Transport started collecting a fee for roadmaintenance from the start of 2013. This is because a number of key roads, including the NationalHighway 1A, are deteriorating rapidly and the government does not have sufficient funds to boost itsbudget for road maintenance - the ministry estimates that it only meets 40% of the funds needed for roadmaintenance. The government is also hiking toll fees for existing roads and implementing new tollstations on certain expressways - Intellasia reported that transport costs in Vietnam would treble by 2015when 21 new BOT toll stations on NH-1A are operational, plus a rise of 3.5 times in road fees.

These toll and fee increases came about after the Vietnam Ministry of Transport revealed at the end ofNovember 2012 that its original targets for highway construction between now and 2020 - 2,000km ofexpressways completed and 3,000km under construction by 2020 - are not possible due to thegovernment's limited budget for roads and the lack of financing from the private sector.

We do highlight that financing from foreign sources for road projects has become increasinglyforthcoming. In March 2013, Japan and Vietnam exchanged a diplomatic note which stated that Japanwill finance 12 projects worth a combined US$2.2bn, mostly in transport infrastructure (such as the thirdphase of the Nhat Tan Bridge and the second phase of a road project linking Noi Bai Airport with NhatTan Bridge). In May 2013, Goldman Sachs, as leader of a lending syndicate, reached an agreement withthe BT 20 Joint Stock Company consortium to provide US$250mn for the rehabilitation (first phase) ofthe 110km NH-20 under a BT format.

Besides NH-20, the Asian Development Bank had announced in August 2013 that it will provide a US$410mn loan for the Vietnamese government to develop a new arterial road. The loan would help in theconstruction of Second Southern Highway, which would connect Ho Chi Minh City in Southern Vietnamto the Mekong Delta and southern coastal regions. The project involves the construction of access andinterconnecting roads totalling 26km, as well as two cable-stayed bridges with a combined length of 5km.The US$860mn project would also receive a loan of US$260mn from the Export-Import Bank ofKorea, while the Vietnamese government would contribute US$56mn. Additionally, the AustralianAgency for International Development would grant AUD160mn (US$143mn) for the project.



The Vietnamese government is also making progress with the use of public-private partnerships (PPPs)for roads. On September 19 2013, the Vietnam Ministry of Transport (MOT) and the World Bankcompleted the fourth and final investor conference for the US$757mn Dau Giay-Phan Thiet expresswayproject. The conference was aimed at showcasing the 98.7km expressway to international investorsinterested in becoming the project's secondary investor. In July 2013, the Vietnamese government hadselected Vietnam-based Binh Minh Import-Export Production and Trade Company (Bitexco) as theprimary developer of the 4-lane project, with Bitexco providing up to 60% of total equity investment andthe remaining 40% by the secondary investor. Bitexco can, however, dilute its share in favour of thesecond investor during the construction. Since the road show, the Saigon Times reported that only seveninvestors, out of more than 100 participants, submitted applications to MOT. While the investors have yetto be made known, a report from the Philippines Star in mid-November noted that Hong Kong-basedinvestment firm First Pacific and Philippines-based Metro Pacific Investments were both interested inthe project.

The project is due to be awarded in the fourth quarter of 2014 under a 30-year Design, Build, Finance,Operate, Maintain and Transfer concession. The project is expected to start construction in June 2015 andbe ready for commercial operations in January 2019. That said, we believe there are a number of issues,such as the hostile business environment that investors have to contend with, which are likely to delay theconstruction of the project.

The Dau Giay-Phan Thiet expressway project is also the first road project and the largest infrastructureproject to be developed under a public-private partnership (PPP) format in Vietnam. It therefore serves asa reflection of the country's ability to implement infrastructure projects under a PPP framework and anyfailures would be a significant blow to investor confidence. As such, the Vietnamese government hastaken several steps to ensure the project's bankability and that its PPP framework meets internationalstandards. The project is also set to enjoy the bulk of the incentives initiated by the Vietnamesegovernment to spur PPP infrastructure investment. This includes a non-refundable grant from Vietnam'sviability gap financing mechanism and assistance for tax, currency exchange, site clearances (landacquisition cost will be carried out by the MOT and funded by the Vietnamese government) amongothers.

Railways

Railways will account for close to 24% of Vietnam's total transport infrastructure industry value in 2014,

according to BMI's forecasts. Vietnam's rail network stretches for 2,632km, but only 527km is standard

gauge (1.435m gauge). The network has around 1,790 bridges totalling 45km and 11.5km of tunnels. Theprincipal axis is Hanoi-Ho Chi Minh City (1,726km). Other lines emanating from Hanoi are to Hai Phong(102km), Lao Cai (296km) and Dong Dang (162km).

Vietnam had previously planned to build a US$56bn north-south high-speed railway line, but this wasrejected by the Vietnamese National Assembly in June 2010. The proposed project has since resurfaced,with Japan announcing in September 2012 that it remains keen to assist Vietnam in building this north-

south high-speed railway line by 2030. In November 2013, an amended proposal was submitted, prepared

by the Japan International Cooperation Agency, proposes to upgrade the existing north-south rail route at

the cost of US$1.8bn before commencing building a new line, which will be pushed back to 2030. This



differs slightly from an earlier proposal made in April 2013, in which state-owned Transport Engineering

Design Inc (TEDI) suggested that work on the north-south high-speed railway project in Vietnam should bedelayed and the focus should be shifted on upgrading the current north-south track. It further proposed that

the speed of the north-south high-speed train should be slowed down to 150-200km per hour from more

than 200km per hour, while the time frame for the development of the trans-Asia railway should be

reconsidered along with the rail lines connected to seaports, industrial zones and tourist sites.

There are still plans to build a high-speed railway line between Laos and Vietnam. The US$5bn high-speedrailway project, which is close to starting construction work, will span 220km from the Laos centralprovince of Savannakhet to the Lao Bao border gate of neighbouring Vietnam and is expected to be

operational in the next five years.

Table: Vietnam Railway Corporation's Main Targets

Upgrading north-south railway routes and improving the running speed of passenger trains and freight trains to100-120kph and 100kph respectively.

Upgrading west-east railway corridor so that the maximum speed of passenger trains and freight trains is 80-100kphand 60-80kph respectively.

Paying more attention to the development of new routes between Ho Chi Minh City-Vung Tau, Ho Chi Minh City-CanTho, Thap Cham-DaLat, Yen Bai-Tuyen Quang-Bac Thai, Lien Chieu-Dung Quat, etc.

Carrying out surveys and preparing to link the railway network to Singapore-Kunming route is aimed at fulfillingmissing links such as Ho Chi Minh City-Phnom Penh city and Cambodia-Vietnam.

Source: Vietnam Railways

Instead of a high-speed railway line, the government is looking to increase the speed of the existing normal-

gauge north-south railway line. In April 2013, the Ministry of Transport said that it had assigned the

Vietnam Railway Corporation to make a detailed plan to increase the speed of the line from 90km/h to

200km/h. This could be done in two phases. The first phase would increase the speed of the line from 90km/

h to 110km/h, while the second phase would involve the construction of a new double-track standard gauge

line that increases the line's speed to 220km/h.

The government is also looking to improve its existing railway network. In March 2013, the Ministry of

Transport said that between 2013 and 2020, the Vietnam Railway Corporation needed to focus on

improving the existing railway system and building several new 1,435mm gauge dual track lines along the

existing 1,726km north-south (Ngoc Hoi-Phu Ly) railway line. Under the amended planning the railway



sector would require around VND365.242trn (US$17.4bn) to 2020 for upgrading six existing lines, puttinginto place three new arterial routes, including some lines heading seaports, economic zones and tourist sites.

Amendments relating to Vietnam's railway development planning to 2020, with a vision toward 2030 (2009planning), have been reported by the Vietnam Railway Administration (VRA) to the Ministry of Transportin April 2013. According to a proposal from the consultancy unit that is tasked with amending the 2009

planning, Vietnam will weigh up the construction of a trial electrified 1,435mm Ngoc Hoi-Phu Ly gauge

dual-track line, with a velocity ranging from 160km to 200km per hour. Overhauling the existing 1,726km

north-south railway is estimated to require a total investment of VND39.87trn (US$1.9bn). Of the total, thecapital demand to 2020 is set at VND18.61trn (US$886mn).

By 2015, Hanoi Railway Station is expected to emerge as the centre of the country's system. The station

will join the other means of transport and boast a multi-functional service centre. The upgraded facilitiesand services are to have an annual transportation capacity of 13.7mn tonnes of freight and 17.7mn

passengers.

However, just like the roads, the railway sector suffers from a lack of financing. In October 2012 the deputydirector of the railway administration, Nguyen Van Doanh, said that a total of 20 railway projects wereearlier recommended by the VRA to be developed under the forms of BOT, build-transfer and build-

transfer-operate. This list of projects was submitted to the Ministry of Transport in early 2010, but a lack ofinvestors prevented them from starting. Among the 20 railway projects calling for investment in 2010-2020,they include the 381km Lao Cai-Hanoi-Hai Phong railway line, the 114km Bien Hoa-Vung Tau route and

the 49km railway connecting Trang Bom in Dong Nai with Hoa Hung in HCM City.

Urban Railways

As most of the railway projects in Vietnam are at an early stage, we believe that it would be urban railwayprojects that will drive our railways infrastructure industry value forecasts over the short to-medium term.We believe these urban railway projects will be crucial to Vietnam's economic and social development, asthe country attempts to deal with rapid urbanisation, while successfully managing a booming economy. The

combination of rising urbanisation and steady population growth is exerting considerable pressure on

Vietnam's urban transportation systems. This urbanisation trend is felt acutely in Hoh Chi Minh City and

Hanoi, the country's largest cities and chief commercial hubs. Both cities are home to approximately 16% of

the country's total population and traffic conditions have worsened. Congestion occurs frequently at road

junctions during rush hour and average traffic speeds vary from around 10-30km/h in both cities. There ismuch scope for traffic conditions to worsen further. Not only could there be a fundamental shift to cars due



to rising incomes - for example, 90% of the vehicles in HCM City are motorcycles - but Vietnam is also

looking to accelerate the urbanisation rate in the country. According to a draft national urban development

programme approved by the government in June 2012, Vietnam will strive to achieve an urbanisation rate

of 38% with 870 urban areas by 2015, and 45% with 940 urban areas by 2020. The country is estimated to

currently have an urbanisation rate of 30%.

The development of an urban railway system will therefore help alleviate many of the problems associated

with congestion. No other system can carry more people and run on such a dependable schedule at a lower

cost, and we expect Vietnam to continue to push forward with urban railway projects. As of May 2012, thegovernment transport plan for Hanoi to 2030 includes eight urban railways, with a total length of 284km,

and six subway lines, linking key parts of Hanoi and its outlying areas. Meanwhile, Ho Chi Minh City aims

to complete around six metro lines with a total length of 120km by 2020.

Some of these urban railway plans have moved forward (such as Ho Chi Minh City's Ben Thanh-Suoi TienMetro line 1, the underground section of the Metro line 2), but just like the roads sector, several have alsofaced delays. This is because they are suffering from slow site clearances (such as the Cat Linh Street-HaDong District railway line in Hanoi, which is two years behind schedule), cost overruns (such as the Nhon-Hanoi Station urban railway line No. 3), the lack of a legal framework, a lack of proper planning forunderground space and integration with other transport modes, and the lack of skilled labour.

The sector is also heavily reliant on financing, mainly official development assistance loans, from several

foreign countries and multinational development banks. This has caused delays as to access these loans

Vietnam needs to conform to the regulations of all its donors, making it difficult to coordinate construction

work for the projects. In addition, European banks are set to face difficult economic conditions and strictercapital controls over the coming years. This could lead to a decline in European financing for Vietnamese

projects and has already transpired, with the Spanish government announcing in late November 2012 that itwould only provide 40% of the financing it had initially promised for an urban railway project in Ho ChiMinh City (the Metro Line No.5).

Having said that, some lenders remain keen to provide funds for Vietnam's urban railway sector. In March

2013, Japan and Vietnam exchanged a diplomatic note, under which Japan agreed to finance 12 local

projects such as the first phase of the Hanoi urban railway line 1 (Gia Lam-Giap Bat).

Officials from the Ho Chi Minh City administration also pointed out in March 2013 that the Asian

Development Bank (ADB) and the European Investment Bank (EIB) will provide a combined US$735mnfor the Metro Line No.2. The loan agreement for the Metro Line No.2 was signed in July 2013. Line 5 of



the Ho Chi Minh metro system will be financed by three international organisations, according to the

Railway Gazette. The Asian Development Bank, the European Investment Bank and the Spanish

government will provide US$500mn, EUR150mn (US$206mn) and EUR200mn (US$275mn) respectively,to construct in 2015 the first 8.9km of the line that is slated to run between Sai Gon Bridge and the Bay

Hien Intersection.

Ports

Although roads and railways are dominating transport infrastructure, we highlight that ports, harbours and

waterways will see their share increase significantly over the coming years. Vietnam's dense river and canal

network - which measures 17,702km - provides the country with a highly developed inland waterway

system, but its port infrastructure is poor by international standards. The main ports currently in operations

are the Cam Pha Port, Da Nang, Haiphong, Ho Chi Minh, Phu My and Quy Nhon.

Vietnam's seaport network comprises many small and medium-sized entities, with inefficient distribution.

Most ports in the northern part of Vietnam are dispersed and small in scale, while most big ports are located

on rivers, such as Hai Phong and Ho Chi Minh City, with limited depth at the entrance. Some ports are

located in big cities, thus making it difficult to connect with other modes of transport due to traffic

congestion. With the exception of several new or upgraded ports, most have been operating for many years

and lack investment. The loading and unloading equipment in some ports is obsolete, leading to low

productivity. The average productivity of a Vietnamese port is only 2,500 tonnes/m per wharf, which is less

than half of the productivity of other ports in the region. As of January 2013, Vietnam was home to 266

large and small-scale seaports, but only nine ports are able to handle 50,000-deadweight tonne (dwt) ships.

Activity in the maritime sector is mainly concentrated on boosting the capacity of the southern economic

zone, especially in the Thi Vai River area. Major global port operators with interests in the region includeHutchison Port Holdings, Singapore's PSA International, Saigon Port, Denmark's Maersk and France's

Compagnie Maritime d'Affrtement-Compagnie Gnrale Maritime (CMA CGM). These companieshave all been involved in the operation and development of major Vietnamese ports in the Thi Vai River.

BMI anticipates increasing investment into Vietnam's port infrastructure over the long term, as it is a sector

crucial to the country's economic growth. There are two major factors central to our view:

The country needs to upgrade its ports to avoid major bottlenecks, which would constrain the country'sexport-led growth and investment. Vietnam's port infrastructure ranked only 113th in the 2012/13competitiveness report published by the World Economic Forum.



Vietnam is becoming increasingly important, not just to growing Intra-Asian trade but also on the globalstage. An increasing number of shipping companies are choosing Vietnam as their port of call as they plythe east-west trade route. Vietnam's ports are gradually graduating from feeder stop-offs on the majorroutes to boasting direct services on both the Asia-US and Asia-Europe services.

Vietnam is keen to address this deficit, but lacks the necessary fiscal strength to meet the required

investment. This keenness to meet this deficit has also been dampened recently due to feeble external

demand. The slowdown in global economic activity in 2012 and 2013 had dampened the demand for

Vietnamese goods and minerals, resulting in a glut in port capacity, particularly with deep-sea ports in

South Vietnam. This glut has become so serious that in August 2013, Vietnam's transport ministry

announced that it will not issue any licences for the construction of new container ports in Ba Ria-Vung

Tau, Ho Chi Minh City and Dong Nai until 2015. This comes as ports in Cai Mep-Thi Vai have been

carrying out operations at far below capacity. This forms part of measures by the government to enhance

operation efficiency of the port system in the three localities. Meanwhile, the government has also decided

not to expand existing ports in HCM City to move goods to Cai Mep-Thi Vai. The ministry will consider

granting permission for new ports only after 2015, depending on market demand.

Vinacomin also decided to suspend the construction of the Ke Ga deepwater port in the Binh Thuan

province, according to Vinacomin General Director Le Minh Chuan in February 2013. The company took

the decision due to a cut in bauxite production. The port was scheduled to receive bauxite from mines in

Tay Nguyen, with an annual capacity of up to 3.5mn tonnes by 2015, 17.5mn tonnes by 2020, 27mn tonnes

by 2025 and 37mn tonnes by 2030. However, the output of bauxite at Tan Rai and Nhan Co alumina

projects in Dak Nong Province is low and may reach only 1.3mn tonnes.

Besides Vinacomin, Vinalines is also selling stakes in four of its ports - namely Hai Phong, Da Nang,

Quang Ninh, Saigon and Quy Nhon - between 2013 and 2014 to pare down its high level of debts, whichwere brought on by investment in under-performing ports.

As a result, Vietnam had adjusted its port development plans at the start of January 2013, with the VietnamMaritime Administration announcing that it would only focus on building large deep-sea ports in Hai

Phong's Lach Huyen and Ba Ria-Vung Tau's Cai Mep - Thi Vai port complexes. The administration will

also focus on converting the remaining ports in the central region and the Mekong Delta into special-use

ports to transport materials for thermo-power plants. Small ports that had been planned for development

will not be put into this time's zoning plan if they are not in urgent need.

This plan appears to be taking place, with only the Lach Huyen port project starting construction works inApril 2013. The port is scheduled to be built in two phases, with the first phase entailing the construction of



port infrastructure, while the second phase will include the construction of two 750m wharves capable of

handling 100,000-tonne container ships. The Vietnam Maritime Administration will manage the first phase,

involving an investment of more than VND18.6trn (US$885mn), while a joint venture of Vietnamese andJapanese enterprises will manage the second phase worth more than VND6.57trn (US$315mn). The port,due for completion in 2016, will have modern cargo handling equipment. It will be capable of handling

container ships of up to 8,000 twenty-foot equivalent units (TEUs).

Vietnam's difficult business environment could continue to slow project implementation. In July 2011,construction work on the US$3.6bn Van Phong International Port in Vietnam's southern central province ofKhanh Hoa was suspended, because initial feasibility studies for the port project did not sufficiently assessthe site's geology. This resulted in inconsistencies in pile design during the construction phase. Although the

project investor Vinalines had signed a deal with Netherlands-based Rotterdam Port for the port'sconstruction, the lack of financial strength in Vinalines has finally forced the government to suspend the

project in September 2012. In June 2013 the management of the Van Phong Economic Zone cancelled theinvestment licence, held by Vinalines, to build Van Phong International Port project. Vinalines is requiredto complete all procedures to liquidate the project within H114.

Another business environment issue that is hindering the growth of the port sub-sector is the lack of

coordination in developing the different types of infrastructure (roads, ports, airports, railways). Two portsin Ho Chi Minh City - the US$17.5mn Phu Huu Port and the US$19.1mn Phu Dinh Port - have been leftunused for several years due to lack of access to key roads. These ports are connected to streets that are

either often flooded, too narrow for container trucks or lack access to highways. This could remain an issue

for other ports currently being developed. The VND2.73trn Saigon-Hiep Phuoc port was scheduled to be

completed by 2014, but as of March 2013, a harbour bridge and port routes to connect it with main

highways and roads have yet to materialise:

A shortage of qualified logistics staff is a problem, where, according to the Vietnam Freight ForwardersAssociation (July 2012), only 40% of the demand for qualified logistics staff is met.

A lack of proper planning is also an issue. According to the Vietnam Seaports Association in January2013, seaport zoning plans of Vietnam are yet to be synchronic and have still failed to meet rising seatransport demand due to a disproportional focus on the construction of small ports, which are inefficientin meet Vietnam's transhipment needs.

The government has also been slow in implementing regulations that support the development of a PPPframework for port projects. A PPP framework has been on the cards for several years but has yet to bedeveloped, with investors still seeking incentives from the government to attract PPP investment inAugust 2012.

Access to financing remains an issue, despite a sharp decline in Vietnam's interest rates. This is partiallydue to Vietnam's financial regulations and the decline in government investment.



In June 2012, Formosa Plastics Group (FPG) was reported to be facing difficulties in obtaining funds forits steel and seaport project in Vietnam's Central Ha Tinh province. This is due to lending limitations atforeign bank branches in Vietnam, as a foreign bank is not permitted to lend more than 15% of its own

equity for a single borrower.

During December 2012, Saigon Port Company Deputy Director Huynh Van Cuong said that the Saigon Port

relocation project has not made any considerable progress due to capital shortages. The relocation work ismoving at a slow pace despite financial assistance from the Vietnamese government. The Hiep Phuoc Port

construction project is required to be finished first in order to relocate the Saigon Port from Ho Chi MinhCity; however, construction work is only 38% completed.

There are still foreign companies keen on entering Vietnam's port sector. In June 2013, Australia-based

N&M Commodities unveiled plans to develop a US$3.5bn deep-sea port on Hon Khoai Island, Ca Mauprovince. The company was completing the necessary administrative procedures for the project, which isexpected to start construction works at the end of 2016. Once completed, the Hon Khoai Seaport is expected

to become the gateway to the Mekong Delta and HCM City.

Airports

Although the airport infrastructure sub-sector accounts for the smallest portion of transport infrastructure,

the government has ambitious plans to modernise and expand the country's airport infrastructure, which

consists of 44 airports. The government's initial plans were to develop 10 international airports by 2020:

Noi Bai, Cat Bi, Phu Bai, Danang, Chu Lai, Cam Ranh, Tan Son Nhat, Long Thanh, Can Tho and Phu

Quoc; and 16 domestic airports in the same timeframe, which includes Dien Bien Phu, Na San, Lao Cai,Quang Ninh, Gia Lam, Vinh, Dong Hoi, Phu Cat, Tuy Hoa, Pleiku, Buon Ma Thuot, Lien Khuong, RachGia, Ca Mau, Con Son and Vung Tau.

This willingness by the government to get projects under way for the private sector (although this ispartially due to a lack of public funds) provides grounds for optimism and this has attracted foreigninvestors to the sector. In April 2011, US-based ADC-HAS Airports presented a proposal to the

Vietnamese Ministry of Planning and Investment with regard to investing in seven airports in the country's

central region - Chu Lai, Phu Bai, Da Nang, Tuy Hoa, Quy Nhon, Pleiku and Cam Ranh airports. This planis still in the works. In August 2012, ADC-HAS Airports suggested a plan to develop the Chu Lai airport

into an industrial airport, while the Khanh Hoa provincial government was seeking permission for a plan to

develop the Cam Ranh airport with ADC-HAS Airports and Vietnam Airlines (VAC). ADC-HAS Airports



is also interested in developing the Da Nang airport with VAC. In April 2013, the Airports Corporation of

Vietnam (ACV) tasked Parsons Brinckerhoff with investigating the potential to develop the Chu Laiairport into a regional cargo hub. The study was funded by a grant from the US Trade and Development

Agency. In June 2013, ADC-HAS Airports reiterated its interest in expanding the Cam Ranh Airport and

Danang airport.

However, the lack of demand for air travel in the near term and the stiff competition from other airports in

Asia to serve as regional hubs could make it difficult for these new airports to be financially viable.

Since early 2012, Vietnam has announced that it was in the search for foreign investors to help construct

two international airports: the US$1.2bn Van Don International airport in the northern province of QuangNinh and the US$10bn Long Thanh International airport in the southern province of Dong Nai. The twoairports are part of a strategy to compete with neighbouring airports in Thailand and Singapore. According

to Nguyen Cong Hoan, a director for the Vietnamese airport operator ACV, foreign investors have already

expressed interest in the Van Don airport, with South Korean investors being highlighted as one of the

interested parties in late-2012. Interested investors were due to complete project documents and submitthem to provincial and central agencies in November 2012.

The Long Thanh airport, approved in 2011, also appears to be making some progress, albeit slowly. In

March 2013, the provincial government of Dong Nai disclosed a development plan for the area surrounding

Long Thanh International Airport. The government plans to develop a tourism complex, several industrial

clusters and world-class sporting, education and healthcare venues in the 21,000-hectare (ha) area. The planentails the development of 12 communes in Long Thanh and Cam My districts in the area, excluding the

5,000ha zoned for the terminal, by 2025. The northern part of the airport covering 5,720ha will boast

condominiums for aviation employees and locals, while the southern area covering about 4,400ha will boast

an international transhipment centre, a supporting industrial park and an area zoned for fruit farms and

industrial plants. The plan is likely to be implemented in three phases during 2012-2025, with land

acquisition estimated to cost VND10trn as of March 2013.

The terminal will also be developed in three phases, starting from 2015. The first phase (2015-2020)requires US$5.6bn for the construction of two runways, taxiways, aircraft parking zones and two terminalswith an annual handling capacity of 25mn passengers and 1.2mn tonnes of cargo. The second phase

(2020-2030) involves the construction of a third runway and the increase in passenger handling capacity by50%, while cargo handling capacity is increased to 1.5mn tonnes per annum. The third phase (2030-)



involves the construction of a fourth runway and the increase in passenger and cargo handling capacity to

100mn passengers and 5mn tonnes of cargo per annum.

Both airports are part of the government's strategy to develop as many as six international airports, which

include locations such as Cam Ranh, Chu Lai, Danang and Hue. The Long Thanh airport is the centrepiece

of this expansion, as it is the largest greenfield airport project in Vietnam (and possibly in Asia), with aneventual annual passenger capacity of 100mn per annum, a 5mn tonne cargo capacity and four runways.

While there are compelling factors driving the government to build new airports - to meet a growing

demand to travel within Vietnam's population and to unlock the growth potential of its tourism sector -

these airports could struggle to be financially viable if their aim is to serve as regional transit hubs. Not only

is there a lot of competition from other airports in Asia to serve as regional hubs, but these airports already

have well established airlines using them as their main point of transit.

Several airports in Vietnam, particularly in the central provinces, were already operating way below

capacity, despite the rapid rise in tourists. The Dong Hoi airport incurred losses of VND6.9bn (US$332,000) in 2010 and VND9bn (US$432,000) in 2011. This suggests that the demand for new airports isnot broad-based throughout Vietnam, with air traffic in certain regions still immature.

Another reason for this lack of usage could be due to the small number of runways that are able to handle

international flights. Most of the international flights in Vietnam are handled by just three of the country's21 airports, while only nine of these have runways with a length of more than 3,047m, which is a standard

requirement to handle international flights for wide-body aircraft. This suggests that Vietnam could need to

upgrade the runways in its existing airports, rather than construct new airports. As of September 2012,

Vietnam continues to find difficulty in securing financing for its airport projects and is still seekinginvestment capital from different sources.

The government has since recognised this lack of financial viability for some of these proposed airports and

is shifting its focus on a few key airports such as Noi Bai, Danang and Long Thanh. The smaller airports

such as Lao Cai, Lai Chau and Quang Ninh could be developed after 2020, according to official from theministry of Transport in April 2013.



Major Projects Table - Transport

Table: Major Projects - Transport

Project NameValue (US$mn)

Capacity/Length Companies Timeframe Status

Airports

North-South High-SpeedRailway Project

56,000

Vietnam RailwayCorporation (VRC),Japan InternationalCooperation Agency(JICA)

-2025At planning stage(November 2013 -Project re-proposed)

Pleiku Airport UpgradationProject (Phase 1), Gia Lai

350.33mnpassengers/yr

Civil AviationAdministration ofVietnam (CAAV)

-2020 At planning stage

Lao Cai International Airport 61.9 -2020Announced (January2012)

North-South (Ho Chi MinhCity - Hanoi) railwayrehabilitation project

1,800 1,726km

Vietnam RailwayCorporation (VRC),Japan InternationalCooperation Agency(JICA)

-2020 At planning stage (April2013)

Ho Chi Minh Road, NH-2(Pac Bo - Dat Mui)

3,183km -2020

Under construction(October 2013 -Transport Minister hassought an additionalUS$3.1bn for project;First phase completed;Second phase underconstruction and to becompleted by 2015,with third phase tocomplete in 2020)

Six-lane Nha Trang City[Khanh Hoa Province] -Phan Thiet City [Binh ThuanProvince] PPP ExpresswayProject

3,500 235km -2020Feasibility studies/EIAunderway (August2012)

Urban Railway Line No. 1(Giap Bat-Gia Lam), Hanoi 15.36km

Vietnam RailwayCorporation (VRC) -2019

In tender/Tenderlaunched (July 2013)

Urban Mass Rapid TransitProject - Railway Line No. 2,Nam Thang Long-Tran HungDao, Hanoi

11.54km Hanoi Urban RailwayManagement Board -2018At planning stage (July2013 - Constructionyet to begin)

Ben Luc-Long ThanhExpressway - Part of North-South Highway

57.8km

Asian DevelopmentBank (ADB)[Financier],Vietnam ExpresswayCorporation, JapanInternationalCooperation Agency(JICA)[Sponsor]

-2016

Contract Awarded(January 2013 -Construction Expectedto start soon)

Ca Pass tunnel (Phu Yenand Khanh Hoa provinces)

742.8 14.5km Deo Ca Investment -2016Under construction(October 2013 -Project is running one



Major Projects - Transport - Continued

Project NameValue (US$mn)

Capacity/Length Companies Timeframe Status

year behind schedule(Delayed))

Six-lane road widening BOTproject, Hanoi - Can Thosection, part of 2300kmNational Highway 1

6,000 1887km Government ofVietnam[Sponsor] -2016

Under construction(March 2013 - TheMinistry of Transport(MoT) said that it willput forth its bestefforts to finish theupgrade)

Cam Ranh InternationalAirport Expansion Project

214.35.5mnpassengers/yr

2015-2030

At planning stage(October 2013 - Workwill include secondrunway andupgradation of firstrunway)

Long Thanh InternationalAirport, Phase 1

7,20025mnpassengers/yr

Airports Corporation ofVietnam, Japan AirportConsultants

2015-2020

At planning stage(October 2013 - Workincludes two runways,taxiways, parking area,operationmanagement area, airtraffic managementarea, auxiliary area andpassenger terminal)

Quang Ninh InternationalAirport (Phase1), Doan Ketcommune, Van Don region,Quang

Documents

BMI Vietnam Infrastructure Report Q2 2014.pdf