THE PRIME MINISTER

DECIDES:

Article 1.- To approve the Project on the development of Vietnam National Shipping Lines in the 2001-2005 period with the following major contents:

Vietnam National Shipping Lines shall focus on mobilizing capital from different sources for investment, renovation and fast and steady development of shipping flotillas and seaport systems; organize the synchronous application of advanced technologies to maritime transportation, loading-unloading and services in order to raise the business efficiency and meet the domestic transportation requirements, and at the same time, expand activities, increase maritime service export market share and turnover on the regional market; strive to make Vietnam National Shipping Lines a medium-sized maritime consortium in the region by 2010.

2. On business scale and capacity:

- Shipping flotillas: To continue developing the shipping flotillas so as to reach the total tonnage of 1.5 million tons in 2005, with the ships� average age being under 15 years, ensuring the transportation of 80% of goods volume subject to inland maritime transportation and 25% of goods volume exported and imported by sea in the whole country, with:

+ 40% of export goods volume transported by containers.

+ 30% of export rice volume;

+ 20% of export coal volume;

+ 10 -15% of import fuel volume;

+ 20% of import fertilizer volume.

- Seaport system: To continue making intensive investment in and renovating technologies for the existing ports, to build Vung Tau container port and to participate in the exploitation of new ports in order to achieve the total cargo handling capacity of 32 million tons/year and the productivity of 3,500 tons per one meter of berth/year in 2005.

- Service enterprise sector: To strive for the target that, by 2005, the shipping flotillas and service system shall participate in the regional maritime market with 30% of their capacity.

3. Development investment plan:

a) Shipping flotillas:

To focus on developing special-use and modern shipping flotillas, supplementing 75 vessels, equivalent to 938,000 DWT, of which 32 vessels, equivalent to 336,000 DWT, shall be domestically built and 43 vessels, equivalent to 602,000 DWT shall be purchased from foreign countries.

The detailed annual plan on the building and purchase of ships shall comply with Appendix I.

b) Sea-port system:

- To complete the projects on development and expansion of Da Nang port and Hai Phong port (step 1 of phase II) capital loans borrowed from JBIC - Japan.

- To study and invest in the construction of the following ports with self-mobilized and borrowed capital sources:

+ Vung Tau container port (Sao Mai - Ben Dinh)

+ Two wharves for vessels of 20,000 DWT in Dinh Vu - Hai Phong

+ General wharf No. 2 of Dung Quat port.

- To continue making intensive investment in the existing ports and participate in the equipment investment so as to take initiative in fruitfully exploiting new ports.

-To continue building and finishing the construction of dry docks in Gia Lam, North Thang Long and Dong Nai; and at the same time, to study the construction of dry docks in other key economic regions in order to serve the distribution of goods and apply "multi-modal transport" technology, contributing to raising the efficiency of business activities and exploitation of the national communications and transport network.

The detailed plan on the investment in and development of ports shall comply with Appendix II.

c) Maritime service system:

- To strive to complete the restructuring and equitization of maritime service enterprises by 2003; and at the same time, to research into the establishment of maritime service enterprises in large ports in foreign countries to serve the exportation of transportation services and crew members.

d) On science and technology:

- To strive to reach ISO 9001-2000 quality control system�s standards set for transport and service enterprises by 2003.

- To complete the implementation of the "Maritime Safety Management Code" (ISM) and the "Convention on the training and standing-by of, as well as certificate granting to, crew members" (STCW 95) by shipping and crews exporting enterprises in 2002.

- To deploy the application of a "uniform accounting software" for enterprises and the whole corporation in 2003.

e) On the organization of business and production activities:

- To focus on implementing the Prime Minister�s Decision No. 512/QD-TTg of April 26, 2001 on experimenting the form of corporations contributing capital to member enterprises, ensuring that by 2003, Vietnam National Shipping Lines shall operate under the model of "parent company-subsidiary company".

- To restructure and equitize maritime service enterprises; to study the establishment of maritime service enterprises in foreign countries so as to reach the set objectives.

- To continue studying, suggesting and providing container transit service at suitable seaports.

4. Investment capital demand:

The total investment capital for the development of Vietnam National Shipping Lines in the 2001-2005 period is estimated at VND 10,449 billion and USD 226 million, of which:

- Investment capital for development of shipping flotillas: About VND 5,120 billion and USD 226 million.

- Investment capital for development of ports and maritime services: About VND 5,329 billion.