JBIC ODA Loan Project Mid-Term Review Report
Project Name: Vietnam “Hai Phong Port Rehabilitation Project (Phase II)”
[Outline of Loan Agreement]
Loan Amount/Loan Disbursed AmountSigning of Loan Agreement: 13,287 million yen/5,630 million yen (as of March 2005): March 2000 (6th year)[Executing Agency]
Ministry of Transport[Project Objective]
This project was to construct and rehabilitate container facilities and navigation channels at Hai Phong Port, the second largest international port in Vietnam, in order to increase the port’s cargo handling capacity and thereby contribute to thepromotion of socio-economic development in northern Vietnam.
Consultants: Transport engineering Consultants (Vietnam) / Oversea Coastal Area Development Institute of Japan (Japan) / Nippon Koei, Co. Ltd. Contractors: Toa Corporation / Penta-Ocean Construction, Co. Ltd.
[Outline of Results] (Field Survey : February 2005)
Item
Appraisal (March 1999)[Relevance](1) The Doimoi policy calls for the development of northern Vietnam (Hanoi, Hai Phongand Halong Bay) as one of the priority areas. Vietnam’s 5-Year Plan forSocio-Economic Development (2001-2005) and the National Socio-Economic
Development Strategy (2001-2010) also attach particular importance to thedevelopment of ports to accommodate the increasing demand for maritime cargohandling.
(2) “Seaport Development Master Plan 2010” puts emphasis on the improvement ofexisting ports including Hai Phong Port and sets a policy of enhancing the efficiency ofhandling an increasing volume of cargo.
(3) This project was to rehabilitate Hai Phong Port, which had difficulties in handling theincreasing volume of cargo due to the delay in containerization of cargo for transport,
aged facilities, limited cargo handling space, and undeveloped access roads, andtherefore it was a high priority project.
[Effectiveness](1) Increase in cargo (1) Annual cargo handling volume: 5.54 million tons (1998)1: 5.86 million tons (estimate for 2005)
handling capacity of Hai: 7.07million (target for 2010)
Phong Port

Mid-Term Review(1) The national plans mentioned in the left column are effective today. Also, the “Japan-Vietnam Joint Initiative”
announced in December 2003 (proposals for the promotion of foreign investments between the two countries made)also suggests expansion of functions of existing ports in northern and southern Vietnam. Thus, the port sector remains
highly important for the national policy.
(2) “Seaport Development Master Plan 2010” is effective today, and the improvement of existing ports is one of thefactors that will contribute to rapid economic growth. Therefore, the improvement of the second largest Hai Phong
Port remains important.
(3) The volume of cargo handled at Hai Phong Port has been increasing every year, and this project maintains itsimportance.

(1) Annual cargo handling volume

Total Cargo Volume (t)Export (t)Import (t)Domestic (t)Container Cargo (t)Container Cargo (TEU)

1999

2000

2001

2002

2003

2004

6,509,547
939,139
3,170,249
2,400,159
2,230,890
198,779

7,645,643
1,233,892
3,586,396
2,825,355
2,508,840
218,886

8,575,512
1,336,393
4,357,606
2,881,513
2,738,478
227,159

10,321,353
1,365,476
5,286,584
3,669,293
4,023,345
344,028

10,518,262
1,757,845
5,401,816
3,358,601
4,914,749
376,644

10,486,507
1,792,446
5,368,625
3,325,436
4,854,731
398,353

2007(Estimated)
13,000,000

The annual cargo handling volume has increased from 5.54 million tons in 1998 to 10.49 million tons in 2004.
Reasons for this increase include (1) remarkable economic growth of Vietnam as evident by the GDP growth rate
exceeding the level assumed at the time of F/S, and (2) increase in the number of domestic and foreign companies
entering the Vietnamese market, which led to the increase in investment by domestic and foreign companies in theareas along National Routes 5 and 18 including the suburbs of Hanoi as well as Hai Phong City, and the increase in
the number of companies located in the industrial complex. The estimated annual cargo handling volume for 2007
(by the implementing agency, at the year of completion of this project) will be 13 million tons.
(2) Average waiting time (time on demurrage): no target set(2) Average waiting time
1999
General Cargo
Container Cargo

1 Figures for 2005 and 2010 are from Ministry of Transport.

1

2000
30
14

2001
2816

2002
28
18

2003
35
18

3418

(unit : hour)
2004
3418

(3) Berth occupancy rate: no target set(3) Berth occupancy rate
1999
73%

2000
75%

200178%

2002
73%

2003
72%

2004
74%

51%

66%

59%

60%

65%

66%(4) Gross tonnage of entering vessels
1999
Others Vessels
4,311,000
Container
2,717,000
Vessels

2000
5,173,000
3,260,000

2001
5,685,000
3,582,000

2002
5,800,000
3,656,000

2003
7,332,000
4,353,000

2004
7,546,000
4,481,000(5) Containerized Cargo ratio 2
1999
Containerized
34%
Cargo ratio

2000
33%

2001
32%

2002
39%

2003
47%

2004
46%

General Cargo
Vessels
Container Cargo
Vessels(4) Gross tonnage of entering vessels: no target set(5) Containerization rate: no target set

Reference Information[Efficiency](1) Output(1) Output
・ Improvement of navigation channels: river channels and part of marine channels
・ Construction of the Chua Ve Port container terminal: container berth 2, container
terminal, etc.
・ Rehabilitation of the quay shed, etc.: rehabilitation of the control office, container
freight station, etc.

(1) Almost as planned
・ With respect to the improvement of navigation channels, the river part of its depth will be changed from originallyplanned -5.5m to -7.0m in order to deal with increasing cargo volume which exceeded the original estimatedvolume.

Consulting Service : 421.5M/M

Consulting Service : 405M/M(2) Implementation
Schedule(2) March 2000 - January 2004 (47 months)(3) Project Cost
[Lessons Learned andRecommendations][Indicators set for the
ex-post evaluation](3) 16,319 million yen(3) Same as the estimate at the appraisal time
As a further increase in the volume of cargo handled at Hai Phong Port is expected, early opening of the Phase II facilities is needed. Also, as a measure to address the cargo increase, expansion of the functions ofthe port facilities should be considered.
N.A.
1. Cargo Volume
2. Average Waiting Time
3. Berth Occupancy Ratio (%)
4. Total Gross Tonnage
5. Containerized Cargo Ratio(Consultation between JBIC and implementing agency is needed regarding target value.)(2) March 2000- February 2007 (scheduled) (84 months)
Reasons for delay
・ Delays in the bidding procedure and other procedures due to a lack of experience of procurement under ODA
Loan projects
・ Delays in the procedures for land acquisition (500ha）necessary for dredging and waste disposal. (Landacquisition is almost completed and dredging work is in progress.)

2 Here, containerized cargo ratio is defined as Container cargo volume / Total cargo volume.

2