Vietnam: $32 Million Investment Aims to Improve Safety on
Roads
Contacts:
In Hanoi:
Hoang Thanh Ha
hha@worldbank.org,
84-4-9346600
In Washington, DC:
Melissa Fossberg,
mfossberg@worldbank.org
202- 458-4145

Hanoi, June 10, 2005 – On June 8 the World Bank approved a credit of US$31.73 million to support Vietnam’s Road Safety Project to reduce the rate of
accidents, injury and death associated with road transport. The project is designed to strengthen the management of road transport safety in Vietnam
through physical improvement of roads and institutional improvement. A key element of the project will be the introduction of “safe highway”
demonstration corridors on three sections of national roads where the highest rates of fatality and injury are currently being observed.

The transport safety situation in Vietnam has been deteriorating for the past decade. With an official fatality rate in 2004 of around 8.3 persons per
10,000 registered vehicles, injury rate of 10.7 persons per 10,000 registered vehicles, and an accident rate of 12 cases per 10,000 registered vehicles,
Vietnam is quickly becoming among the most dangerous road environments in East Asia. Only China (about 25-30 fatalities per 10,000 vehicles) is
currently reporting rates above those observed in Vietnam. The comparable rates in OECD countries are in the range of 1-2 fatalities per 10,000
registered vehicles.

The Road Safety Project will address the most pressing needs for improving road safety in Vietnam. First, to strengthen the capacity, resources, and
skills of the agencies responsible for delivering the government’s program, including the National Traffic Safety Committee, the Ministry of Transport and
its Vietnam Road Administration and Vietnam Register, Ministry of Public Security, Ministry of Health, and Ministry of Education and Training. This
institutional and capacity building program receives around $7.9 million.

Secondly, the project will also support development of a National Road Accident Database System. This $6.2 million component aims at enhancing the
identification and monitoring of locations around the country where accident, injuries and fatalities most frequently occur, so that effective actions can be
taken quickly to remedy the underlying cause.

The project reserves the largest resources to support the Government in developing and implementing comprehensive, integrated safety programs along
three high-risk national road corridors including: National Highway 1 between Hanoi and Vinh (281 km), national Highway 1 between Ho Chi Minh city
and Can Tho city (151 km) and Highway 51 from Dong Nai province to Vung Tau (80km). The objective of this “safe highway” program will be to
implement and monitor a comprehensive set of safety improvements along these corridors so as to demonstrate the best options for Vietnam to improve
its road safety situation. Based on the experience learned from this program, the project will also support the development of a long-term National Traffic
Safety Strategy that can be implemented throughout the country to improve road safety to international standards.

“The project will work to strengthen traffic safety coordination among government ministries and agencies, as well as improve the enforcement of road
safety laws, increase publicity and education about the effects of road accidents, improve facilities for vehicle and driver testing and licensing and
improve emergency medical services. ” said World Bank Country Director Klaus Rohland. “We aim to reduce fatality rate on the project “safe
highway” roads by half and injury rates by two thirds after 5 years.”

“The urgency of the road safety problem requires us to mobilize all partners and stakeholders whose participation is critical to achieving a safer
transport system. The project supports the National Traffic Safety Committee’s objective to intensify its efforts to better motivate and coordinate
relevant Government agencies and stakeholders to rapidly improve road safety,” said H.E. Dao Dinh Binh, Minister of Transport and Chairman of
the National Traffic Safety Committee. “We see the project as important step in achieving our vision of a modern and safe transportation system for
Vietnam.”

For more information about the project and other World Bank activities in Vietnam, please visit www.worldbank.org/vn

Additional Notes
       The World Bank strongly supports Vietnam's efforts in attaining Vietnam's localized Millennium Development Goals and targets.
       The World Bank provides three type of services to Vietnam: (1) design and financing of development projects; (2) analytical work, policy advice,
       and technical assistance; and (3) donor dialogue facilitation. In addition, every year the Bank co-chairs the Consultative Group (CG) meeting in
       which all donors gather to discuss the aid program for Vietnam.
       Since reengaging in Vietnam in 1993, the World Bank has supported 35 projects to help fight poverty in Vietnam through finance for agriculture,
       infrastructure, health programs, schools, and other essential needs.
       Since 1993, US$5.3 billion has been committed to Vietnam, of which over $2.7 billion has been disbursed. This makes Vietnam the largest IDA-
       only borrower in the world.