Legal, Institutional and Financial Solutions for the Sustainable Development Strategy of Inland Waterway Transport in Vietnam

Abstract

Inland waterway transport (IWT) plays an important role in the cause of socio-economic construction and development and national defense during the period of national renewal and international economic integration. With abundant infrastructure resources, inland waterway transport is a strong transport form of Vietnam, and is considered a "locomotive" in the strategy of the transport industry. The IWT system of Vietnam is well performing its duties. The share of the IWT in Vietnam is among the highest in the world and the transport volume is still on the rise. This encouraging result is due to the main waterway network in the North and the South that currently serves the two most economically and spearhead locomotives of Vietnam. However, the development potential of IWT in Vietnam has not been optimally exploited and still limited. The main reason is due to the weak enforcement of current regulations because of overlapping legal system; Institutional framework faces many shortcomings, such as the current regulatory management sector, which lacks a formal mechanism for consultation with professional knowledge and expertise; The financial support framework is unclear and unsustainable as no user fee collection is used to support the infrastructure management activities of the Vietnam Inland Waterway Administration or lack of capital to build infrastructure development, the role of participation of private enterprises is limited.Therefore, improving the effectiveness of institutional structure, strengthening the framework and legal regulations as well as innovating financial mechanisms are essential for the sustainable development strategy of Vietnam's inland waterway transport industry in the period 2020-2030. The paper emphasizes the study of the development status of IWT system in Vietnam to highlight the role of reform solutions. The focus is on the institutional framework of infrastructure management and sector regulation, improving the enabling environment by disseminating laws and regulations in the industry, efficient distribution of capital resources ensures transparency and sustainability. The author has analyzed and comprehensively assessed the challenges that the inland waterway transport industry is facing, especially the pressure on the legal framework, institutional structure and policies that are inherently limited, also recommends for a reform program to support the IWT industry to develop in terms of both scale and technical level.