Ministry of Transport Viet Nam Impact of the Shanghai Agreement on the Development of Asian Highway Network and the GMS CBTA on Progress of Road Transport in the Region   Ministry of Transport Viet Nam

Contents Introduction Impact of the Shanghai Agreement on the Development of Asian Highway Network Impact of the GMS CBTA on Progress of Road Transport Recommendations

Introduction  The Intergovernmental Agreement on the Asian Highway Network was signed in Shanghai in April 2004. Among 32 member states in the Asian region, 27 countries, including Viet Nam, have been signatory parties to the agreement. The Shanghai Agreement aims at promoting the development of international road transport. The GMS CBTA originally signed in 11.1999. At present, 16/20 Annexes and Protocols were signed. The Agreement is expected to be implemented in 2006. The GMS CBTA is considered as “a practical approach to streamline formalities and reduce nonphysical barriers in the region”

Impact of the Shanghai Agreement on the Development of Asian Highway Network   The Asian highway plays the role as inter-regional and international linkages The Agreement sets technical standards for road and road signage applied on Asian highways By signing the Agreement member countries confirm to give priority on the development of the specified highway within their territories Viet Nam has designated 4 routes as parts of the Asian highway network which connect main cities, ports and major tourist destinations of VN with neighbouring countries 16 % of the Asian highway network are currently below the minimum standards. It is estimated that US$18 billion is needed to upgrade and improve the highways

Kunming-Chiang Rai-Bangkok route through Lao and Myanmar Kunming- Hanoi- Haiphong These routes together with HW N01 of VN form a ring road North-South is an important road for Kunming and Northern of Lao connect to the ports in Northern and Central VN Together with the existing network links Singapore through Malaysia to Chiang Rai, Kunming to Beijing

Impact of the GMS CBTA on Progress of Road Transport GMS road network will play role as intra-regional and a land bridge between China and ASEAN block as well as between ASEAN and India. The GMS CBTA is a comprehensive multilateral instrument, which covers all the relevant aspects of cross-border transport facilitation such as: Immigration, Customs, Quarantine, Vehicles, Infrastructure. Under single-stop/single-window inspection scheme, people, vehicles and goods shall be subject to border crossing formalities, conducted jointly and simultaneously by the competent authorities of the Country of Exit and the Country of Entry at the CCA in the Country of Entry.

Impact of the GMS Agreement on Progress of Road Transport GMS countries endeavour to further facilitate the cross-border traffic by establishing a guaranteeing system to allow exempt from physical customs inspection, bond deposit, escort. Designated corridors in the region connect seaports with potential development areas, at present, the growth rate of cross border trade volume along these corridors has been increasing steadily, for example along East-West Corridor: 33% and Kunming –Haiphong Corridor: 15-20%

Impact of the GMS CBTA on Progress of Road Transport The implementation of the CBTA: will boost the regional cross-border traffic, increase the effectiveness of transport systems, cut down travel costs and time, improve competitiveness of goods and services in the region; promote trade and tourism, attract more foreign investment, support their national programmes on poverty reduction.

Recommendations Countries should coordinate in formulating of master plans and exchange of information on the improvement and construction of transport infrastructure aiming at improving investment effectiveness. Countries are required to cooperate in seeking capital investment for road improvement along designated corridors and routes, especially encourage private sector participation in the investment.

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