Study on the ICT Application for Advanced Lifestyle Services in Binh

Transcription

Study on Economic Partnership Projects
in Developing Countries in FY2013
Study on the ICT Application for Advanced Lifestyle Services
in Binh Duong Province, the Socialist Republic of Vietnam
Final Report
February 2014
Prepared for:
The Ministry of Economy, Trade and Industry
Ernst & Young ShinNihon LLC
Japan External Trade Organization
Prepared by:
TOKYU CORPORATION
NTT Communications Corporation
:
Reproduction Prohibited
Study on Economic Partnership Projects in Developing Countries in FY2013
Study on the ICT Application for Advanced Lifestyle Services in
Binh Duong Province, the Socialist Republic of Vietnam
February 2014
The Ministry of Economy, Trade and Industry
Ernst & Young ShinNihon LLC
Prepared by:
TOKYU CORPORTION
Preface
This report summarizes the results of the “Study on Economic Partnership Projects in Developing Countries in
FY2013”, a fiscal 2013 project subcontracted to Tokyu Corporation and NTT Communications Corporation by
the Ministry of Economy, Trade and Industry.
The “Study on the ICT Application for Advanced Lifestyle Services in Binh Duong Province, the Socialist
Republic of Vietnam” outlined in this report focused on improving the communication environment, studying the
ICT environment in relation to advanced essential services, and exploring the feasibility of a project with an
approximate total project cost of 1.1 billion JPY to provide advanced essential services in the Binh Duong
Province of Vietnam.
We hope that this report will assist in the implementation of the aforementioned project, and be of use to all those
involved on the Japanese side.
February 2014
TOKYU CORPORATION
Project Site Map
Binh Duong Province
National Route 13
Binh Duong New City
Tan Son Nhat Airport
Central Ho Chi Minh City
Ho Chi Minh City
Source: Created by Tokyu Corporation
List of Abbreviation
Abbreviation
Full Name/Term
ADB
Asian Development Bank
ADSL
Asymmetric Digital Subscriber Line
ASEAN
Association of South-East Asian Nations
BECAMEX IDC CORP
Investment and Industrial Development Corporation
BOT
Built Operate Transfer
EIA
Environmental Impact Assessment
EIRR
Economic Internal Rate of Return
FDI
Foreign Direct Investment
FIRR
Financial Internal Rate of Return
F/S
Feasibility Study
FTTH
Fiber To The Home
GDP
Gross Domestic Product
GDS
Global Data Service
ha
hectare
HCMC
Ho Chin Ming City
IC
Integrated Circuit
ICT
Information and Communication Technology
ID
Identification
IMF
International Monetary Fund
IRR
Internal Rate of Return
ISP
Internet Service Provider
IT
Information Technology
JETRO
JICA
Japan International Cooperation Agency
JPN
Japan
JPY
Japanese Yen
LAN
Local Area Network
Mbps
Megabits per second
NGO
Non-Governmental Organizations
NPV
Net Present Value
NW
Network
VND
Vietnam Dong
VNIX
Vietnam National Internet Exchange
VNPT
Vietnam Posts and Telecommunication
VNTT
Vietnam Technology and Telecommunication
VSIP
Vietnam Singapore Industrial Park
Abbreviation
Full Name/Term
VTN
Vietnam Telecom National
Table of Contents
Preface
Project Site Map
List of Abbreviations
Table of Contents
Executive Summary
(1) Project Background and Necessity ······················································································· S-1
1) Initiative for Development of Binh Duong New City ································································· S-1
2) Significance, Effect, etc. to Partner Country············································································ S-1
(2) Basic Policy on Determination of Project Details ······································································ S-2
1) Project for Advanced Life Services in Binh Duong New City ······················································· S-2
2) Life Service Business We Aim to Offer at This Point································································· S-2
(3) Overview of Proposed Project····························································································· S-3
1) Standalone Smart Card Commuter Pass System for Buses ··························································· S-3
2) Standalone Loyalty Point Card System in the Commercial Field ··················································· S-4
3) In-Home Monitoring System for Residents and Employee Monitoring System for Business Owners in the
Security Business ·········································································································· S-4
(4) Project Implementation Schedule ························································································· S-5
(5) Project Feasibility ··········································································································· S-6
1) Implementation feasibility································································································· S-6
2) Necessary measures going forward ······················································································ S-7
a) Reinforce the support extended to a collective group of private and public sectors ··························· S-7
b) Build a partnership with related local authorities ··································································· S-7
c) The importance of locally based coordination between the public and private sectors ························ S-8
(6) Technical and Other Advantages of Japanese Companies ···························································· S-9
(7) Project Site Map ··········································································································S-10
Chapter 1 Overview of the Host Country and Sectors
(1) Economic and Financial Situation in the Partner Country ···························································· 1-1
1) Overview of Vietnam ······································································································ 1-1
2) Macro Economy ············································································································ 1-3
(2) Overview of Project Sector ································································································ 1-6
1) Organizational Structure of the Information and Communication/ICT Sector in Vietnam ······················ 1-6
2) Information and Communication/ICT Policy in Vietnam ···························································· 1-7
3) The Current ICT Environment in Vietnam ·············································································· 1-7
4) Development Policy for Industrial Parks and Industrial Clusters···················································· 1-9
5) Urban Development Policy in Binh Duong Province in Vietnam ·················································· 1-10
6) Most Recent Developments Concerning This Project ································································ 1-11
(3) The Situation in the Area Covered by the Study ······································································ 1-12
1) Overview of Binh Duong Province ····················································································· 1-12
2) Overview of Binh Duong New City ···················································································· 1-12
3) Progress with Urban Development in Binh Duong Province ······················································· 1-13
Chapter 2 Study Methodology
(1) Study Contents ·············································································································· 2-1
(2) Study Method and Structure ······························································································· 2-3
1) Survey items ················································································································· 2-3
a) Survey on improvement of the telecommunications environment ················································ 2-2
b) Survey on advanced life services ······················································································ 2-3
2) Survey methods ············································································································· 2-3
3) Survey structure ············································································································· 2-4
(3) Study Schedule ·············································································································· 2-6
Chapter 3 Justification, Objectives and Technical Feasibility of the Project
(1) Project Background and Necessity ······················································································· 3-1
1) Initiative for Development of Binh Duong New City ································································· 3-1
2) Project for Advanced Life Services in Binh Duong New City ······················································· 3-2
3) Significance, Effect, etc. to Partner Country············································································ 3-3
a) “Binh Duong Province master plan on development of information technology for 2010 and vision for 2020”
···························································································································· 3-3
b) “Binh Duong Province master plan on development of post and telecommunications for 2015 and vision for
2020” ····················································································································· 3-3
4) Possibility of Participation of Japanese Companies ··································································· 3-3
a) Provision of IT systems for Life Services ············································································ 3-3
b) Reinforcement of Data Centers and Provision of Cloud Services ················································ 3-3
c) Introduction of a Facility Maintenance and Management System ················································ 3-4
(2) Studies Necessary for Determining Project Details ···································································· 3-5
1) Demand Forecast ··········································································································· 3-5
2) Problem Identification and Analysis Necessary for Studying and Determination of Project Details··········· 3-5
a) Life Service Businesses ································································································· 3-5
b) ICT Environment Improvement ······················································································· 3-7
3) Consideration of Technical Approaches ··············································································· 3-15
(3) Overview of Project Plan ································································································· 3-16
1) Basic Policy on Determination of Project Details ···································································· 3-16
a) Advanced Life Service Project in Binh Duong New City ························································ 3-16
b) Life Service Businesses Currently Envisioned ····································································· 3-16
2) Concept Design and Use of Facilities that Reflect it ································································· 3-16
a) Envisioned Business Expansion ······················································································ 3-16
b) Business Concept Chart (Envisioned Services) ···································································· 3-17
c) Business Scheme Diagram ···························································································· 3-18
3) Details of Proposed Project ······························································································ 3-19
a) Standalone Smart Card Commuter Pass System for Buses ······················································· 3-19
b) Standalone Loyalty Point Card System in the Commercial Field ··············································· 3-19
c) In-Home Monitoring System for Residents and Employee Monitoring System for Business Owners in the
Security Business ······································································································ 3-20
4) Problems with Adoption of Technologies and Systems Proposed, and Respective Solutions·················· 3-20
a) Life Service Businesses ································································································ 3-20
b) ICT Environment Improvement ······················································································ 3-20
Chapter 4 Evaluation of Environmental and Social Impacts
(1) Current Situation Analysis of Environmental and Social Aspects ··················································· 4-1
(2) Environmental Improvement Effect Associated with Implementation of the Project ····························· 4-2
(3) Impact on Environmental and Social Aspects Associated with Implementation of the Project ················· 4-2
(4) Overview of Environmental and Social Consideration-related Laws and Regulations of the Partner Country
and Required Measures to Comply with Them ········································································· 4-2
(5) Matters to Be Implemented by the Country (Project Developer and Other Relevant Organizations) to Realize
the Project ···················································································································· 4-4
Chapter 5 Financial and Economic Evaluation
(1) Estimates of Total Project Costs ·························································································· 5-1
1) Introduction of standalone smartcard commuter pass system for buses ············································ 5-1
2) Introduction of standalone loyalty point card system in the commercial field ····································· 5-2
3) Introduction of in-home monitoring system for residents and employee monitoring system for business owners
in the security business································································································ 5-2
(2) Summary of the Results of the Preliminary Financial and Economic Analyses ··································· 5-3
1) Project implementation system ··························································································· 5-3
2) Summary of financial analysis results ··················································································· 5-3
a) Introduction of standalone smartcard commuter pass system for buses ········································· 5-3
b) Introduction of standalone loyalty point card system in the commercial field ·································· 5-6
c) Introduction of in-home monitoring system for residents and employee monitoring system for business
owners in the security business ························································································ 5-8
3) Review of the economic analysis ························································································· 5-8
Chapter 6 Planned Project Schedule ·························································································· 6-1
Chapter 7 Implementing Organizations
(1) Profiles of Organizations Involved in the Project ······································································ 7-1
(2) Ability of Organizations Related to Implementation of the Project·················································· 7-1
1) History ······················································································································· 7-1
2) Corporate profile············································································································ 7-1
3) Major achievements, etc. ·································································································· 7-2
Chapter 8 Technical Advantages of Japanese Companies
(1) Presumable Form of Participation of Japanese Companies (in investment, supply of materials and equipment,
operation and management of facilities, etc.) ··············································································· 8-1
1) Form of Investment ········································································································ 8-1
2) Supply of Materials and Equipment ····················································································· 8-2
3) Operation and Management of Facilities ················································································ 8-3
(2) Technical, Economic and Other Advantages of Japanese Companies in Implementation of the Project······· 8-4
1) Technical Advantage ······································································································· 8-4
2) Economic Advantage ······································································································ 8-5
(3) Actions Requisite to Helping Japanese Companies Gain More Orders ············································· 8-5
1) Strengthening of Support in Collaboration Between Public and Private Sectors ·································· 8-5
2) Building of Partnerships with Local Relevant Organizations ························································ 8-5
Executive Summary
(1) Project Background and Necessity
1) Initiative for Development of Binh Duong New City
Vietnam is seeing its economy growth at a rapid pace despite the growth rate dropping to 5-6%.Binh Duong
Province is located close to Ho Chi Minh City and achieves one of the highest growth rates in the country, with
the annual average GDP growth rate ranging 14-15%. In the province, construction of a large-scale satellite city
centered on relocation to a new provincial office building was commenced in efforts to suppress population
concentration in the suburbs of Ho Chi Minh City.
In response to the Binh Duong New City construction project, we at Tokyu Corporation established a joint
venture, Becamex Tokyu Co., Ltd., with Becamex IDC Corp., a leading developer in Binh Duong Province
mainly involved in construction of industrial parks, residential districts and roads since its foundation in 1976.
Through this joint venture, we are planning a project valued at approximately 100 billion yen for development
of Tokyu Binh Duong Garden City with an approximate block area of 110 ha and site area of 71 ha consisting
of around 7,500 residential houses, commercial facilities, business facilities and other features in Binh Duong
New City, for an approximate total area of 1,000 ha. As the first part of the project, we put into Phase 1 general
sales for the condominium project called Sora Gardens in April 2013. We thus embarked on very-long-term
urban development in efforts to, in more than 10 years, create a new city with a daytime population of 400,000.
2) Significance, Effect, etc. to Partner Country
With an approximate area of 1,000 ha, Binh Duong New City is located inside Binh Duong Industrial-UrbanService Complex of approximately 4,196 ha. The master plan for this complex was approved via the
Vietnamese government with the Prime Minister’s Decision No. 912 on September 1, 2005, and the new city is
at the heart of Binh Duong Province, for which promotion to a city under direct control of the Vietnamese
central government is planned for 2020. Notably, it has been determined that all administrative functions of the
province, including the provincial committee of the Communist Party, people’s committee and people’s
assembly, will be concentrated in the new city.
S-1
(2) Basic Policy on Determination of Project Details
1) Project for Advanced Life Services in Binh Duong New City
In the urban development of Binh Duong New City, we strive to enable residents to enjoy comfortable lifestyles
as close as possible to the level of developed countries, namely Japan.
For determining the details and specifications of the life services Tokyu Corporation will offer, we need to gain
accurate insight as appropriate into the Vietnamese step-by-step plan to construct an ICT environment that will
support operations of our services.
2) Life Service Business We Aim to Offer at This Point
The plan for Becamex Tokyu is to operate a bus to improve the convenience of commuters and visitors to Binh
Duong New City starting in 2014 by connecting the city with existing cities and towns. Also, we are aiming to
be a comprehensive operator of an advanced life service business by operating retail businesses, among others,
in addition to the residential business that we are already engaged in.
The Life Service Business that we aim to offer at this point is as follows.
 Standalone smart card commuter pass system for buses
 Standalone loyalty point card system in the commercial field
 In-home monitoring system for residents and employee monitoring system for business owners in the
security business
S-2
(3) Overview of Proposed Project
As shown in the diagram below, Becamex Tokyu, a joint venture established by Tokyu Corporation and Becamex
IDC, will serve as the main organizational entity and operate the business.
Figure Summary-1 Diagram of Business Operation Scheme in Binh Duong New City
BECAMEX IDC
Tokyu Coporation
Joint Company
BECAMEX TOKYU
Office
buildings
Commercial
buildings
Point
card
Executing body
Residential
Security
Bus service
Other urban
facilities,
infrastructure
IC Pass
Binh Duong New City
Source: Created by the Study Team
An overview of the advanced life service business we plan to offer at this point in time is as follows.
1) Standalone Smart Card Commuter Pass System for Buses
Business Period: 10 years
Total Operating Expenses: VND 16,662 million (including VND 7,951 million for initial investment)
Business Overview: As shown in the table below
Table Summary-2 Overview of Standalone Smart Card Commuter Pass System Operations for Buses
Item
Launch to Year 1
Year 2
Years 3-4
Years 5-6
Years 7-10
Number of
Approx. 10
Approx. 15
Approx. 20
Approx. 30
Approx. 35
Approx. 3,500
Approx. 6,000
Approx.
Approx.
Approx.
9,000
11,000
15,000
Approx. 100
Approx. 140
Approx. 170
buses
Number. of
cards
issued
Number of
drivers &
crew
members
Equipment,
etc.
Approx. 50
Approx. 70
Terminal: Bus-mounted terminals (in same quantity as number of buses), renewal
stations, terminals for inspectors, etc.
S-3
Hardware : A issuing office, a garage, a server, etc.
2) Standalone Loyalty Point Card System in the Commercial Field
Table Summary -3 Overview of Standalone Loyalty Point Card System Operations in the Commercial Field
Items
Shop area
Number of shops
Number of issued cards
From May 2014
2
Approx. 4,500 m
Approx. 15
Approx. 10,000
From December 2015
Approx. 3,000 m2
Approx. 15
Approx. 10,000
From January 2016
Approx. 3,500 m2
Approx. 10
Approx. 7,000
From September 2017
Approx. 30,000 m2
Approx. 5
Approx. 2,000
From March 2020
2
Approx. 23,000 m
Approx. 10
Approx. 6,000
Total
Approx. 64,000 m2
Approx. 55
Approx. 35,000
3) In-Home Monitoring System for Residents and Employee Monitoring System for Business Owners in the
Security Business
Table Summary -4 Overview of Operations of In-Home Monitoring System for Residents and
Employee Monitoring System for Business Owners in Security Busines
Year
No. of houses (cumulative total)
No. of security system subscriptions
2014
Approx. 1,000
Approx. 300
2015
Approx. 2,000
Approx. 600
2023
Approx. 52,000
Approx. 16,000
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(4) Project Implementation Schedule
The table below shows the implementation schedule for each project. As noted in Chapter 4, regarding schedules
that are associated with considerations for the environment and society, we have not included them in the
scheduling because we would not be able to foresee items that could have a serious impact.
Table Summary -5 Project Implementation Schedule(draft)
Fiscal 2013
1
1. Introduction of smart
card commuter passes
(1) Discussions regarding
system design and
specifications
(2) Tendering
2
3
Fiscal 2014
4
5
6
7
8
9
10
Fiscal 2015
11
12
1
2
3
4
5
Start of bus services
(3) System procurement,
configuration and testing
(4) System installation
2. Trial of loyalty point
card system
system specifications
(2) Tendering
Opening of small-scale commercial facility
3. Introduction of employee
monitoring system
(2) Tendering
Introduction of employee monitoring
system
Source: Created by the Survey Team
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6
(5) Project Feasibility
1) Implementation feasibility
Results of the financial analyses of the three businesses are as follows.
Table Summary-6 Results of financial analyses of the three businesses
Smart card commuter
Loyalty point card
Surveillance system in the
pass system in the bus
system in the
security business
business
commercial area
14.51%
13.60%
14.89%
3.228 billion VND (≒
15.9 million yen)
6.7 million yen)
131.5 million yen)
FIRR
(Financial Internal Rate
of Return)
NPV (Net Present Value)
Note: Project Period is 10 years and discount rate is 9.00%
In addition, as shown below, we will attempt a qualitative assessment of the anticipated social benefits resulting
from implementing each project.
Table Summary-7 Expected social benefits by implementing each project
User benefits
 Improved convenience by enabling passengers to be
without small change and to smoothly get on and off
Introduction of standalone
Social benefits
smartcard commuter pass system
 Smoother getting on and off the bus will enable stoppage
for buses
time to reduce and contribute to alleviation of traffic
congestion
 Contribution to environmental improvement through
promoting the modal shift
User benefits
loyalty point card system in the
commercial field
 Economic benefits from redeeming loyalty points
Social benefits

Encouraging people to purchase products will boost
consumer spending, which will contribute to regional
economic growth
Introduction of in-home
User benefits
monitoring system for residents
 Economic benefits from improvements in services from
and employee monitoring system
for business owners in the
housekeepers, employees, etc.
Social benefits
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 Improved security
security business
 Realization of disciplinary work environment
Consequently, while we cannot anticipate sufficient profitability from a quantitative point of view, we assess
that this business is feasible given the social benefits.
2) Necessary measures going forward
The following has been determined as necessary measures going forward.
a) Reinforce the support extended to a collective group of private and public sectors
The three businesses are standalone entities to be implemented separately, but it is important for both the
public and private sectors to act as one to push along the project.
For example, the use of smart cards would spread to a greater number of bus users, along with enabling us to
set our sights on tying up with Metro Line 1 in the future. This would be possible if financial assistance from
our nation’s government is realized in the form of providing equipment, such as actual buses or equipment
for smart cards that is to be installed in buses, as well as offering technological expertise. This would be
aimed at strengthening the bus business that Becamex Tokyu plans to begin operating in 2014 and is to
connect Thu Dau Mot, the central section of the Binh Duong Province, with Binh Duong New City, as well
as to reinforce the smart card issuance business associated with this bus business.
b) Build a partnership with related local authorities
Regarding Binh Duong Province adopting smart cards, the critical point is to strengthen our relationship with
Becamex IDC, which is a leader in developments in the province. Also, since local banks will be the main
issuing body of smart cards, we will also work on building our relations with local banks that might possibly
become issuers. Otherwise, it is necessary to gather information, as necessary, by making use of the network
with the Binh Duong Province’s Department of Information and Communications, with whom Tokyu
Corporation has had an excellent relationship thus far via conducting a survey on ICT.
In addition to building a relationship with each private enterprise related to the business, it is also necessary
to reach out to the governments of Vietnam as well as that for the Binh Duong Province, as needed, in an
effort to secure a partnership with public entities. This business was initially aimed to delve deeply into
surveying the ICT environment that Tokyo Corporation was conducting on its own. But now, an important
element in promoting this business is the strengthening of relationships with the nation of Vietnam as well as
with the Binh Duong provincial government and the resultant lobbying related to this business. This is in
light of our government adopting the business as a project, which has made it easy to build relationships as a
result of securing the understanding of the Binh Duong provincial government and an improvement in the
quality of the information offered, among other things.
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c) The importance of locally based coordination between the public and private sectors
Needless to say, to achieve success in developing a city, it is essential to set up an integrated lifestyle
infrastructure, which includes everything and not only limited to residences, offices and commercial facilities
developed by private-sector business owners, but also the ICT environment that was covered by this ICT
study and also water and sewage services, electricity services, public transportation, hospitals and schools.
These integrated facilities go beyond the role of private-sector business owners and can only be realized by
close cooperation between the public and private sectors. In order for Tokyu Corporation to export a Japanese
town and develop advanced life-style services in Binh Duong New City, it is critical for the Binh Duong
Province, which is the regional government, and Becamex IDC, as well as Becamex Tokyu to work as one to
construct a life-style infrastructure in a comprehensive and systematic manner. Needless to say, in promoting
this endeavor, it is crucial that Tokyu Corporation, which has a wealth of experience in Japan, become
proactively involved through Becamex Tokyu as a partner in the joint venture with Becamex IDC.
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(6) Technical and Other Advantages of Japanese Companies
We adopt PASMO and Suica transit fare smart cards based on Japanese a technology for our own Group’s Tokyu
Bus services. We will be able to capitalize on this experience for introduction of transit fare smart cards to Binh
Duong Province. With respect to loyalty point cards we also have a record of results in introduction and operation
since we issue and operate our TOP& point card. This card is associated with PASMO and Suica and can also
function as a transit fare smart card. In the security business, we have a subsidiary of Tokyu Security Co., Ltd. to
offer a building monitoring system and many other security services.
As mentioned above, the technologies used in this project are some of those in practical application on a
commercial basis as living services that we already operate in Japan. We have an extensive track record and
abundant experience in offering similar services in Binh Duong Province.
Looking ahead to the future, the smart card standards used for the aforementioned three projects should be the
same as those used for Metro Line 1. We are exploring the possibility of introducing Sony’s FeliCa card standard,
which uses Japanese technology, to Metro Line 1. Although its market share is high in Japan, FeliCa lags behind
NXP Semiconductors based in the Netherlands, which owns the MIFARE technology, and behind US-based
Motorola in the global market. Their technologies fall under what is known as Type A and Type B standards.
However, FeliCa is superior to their technologies in terms of response speed, storage capacity and security
features. It excels particularly when it is used at automatic ticket gates, building entry gates, cash registers, etc.
where high-speed processing is required. FeliCa is widely used in the Asia region with its high population density,
and it is a technology that easily achieves the level of lifestyles realized in Japanese cities. Adopted in Japan for
PASMO and Suica transit fare smart cards and Edy electronic money, FeliCa contributes to greater convenience in
people’s lives.
The aim is to introduce integrated smart cards covering transport, electronic money and security services to
achieve the Japanese standard of living in Binh Duong Province.
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(7) Project Site Map
Figure Summary-8 Project Map
Binh Duong Province
National Route 13
Binh Duong New City
Ho Chi Minh City
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Chapter 1 Overview of the Host Country and Sectors
(1) Economic and Financial Situation in the Partner Country
1) Overview of Vietnam
Vietnam is located in the eastern part of the Indochinese Peninsula. The country borders the People's Republic
of China to the north, and Laos and Cambodia to the West. Vietnam is a socialist state with a system for state
administration that consists of the three organs of the People's Councils, the National Assembly and the central
government. At approximately 330,000 Km2, the land area is equivalent to Japan when excluding Kyushu.
There are five centrally controlled municipalities (Hanoi, Ho Chi Minh, Hai Phong, Da Nang and Can Tho) and
58 provinces. Eighty percent of the population is Buddhist. Religious conflict is rare and the country is
politically and socially stable.
Figure1-1 Vietnam and neighboring countries
Source: The World Fact Book, CIA
Figure1-2 Basic information about Vietnam
Indicator
Land area
329,241 km2 (approx. 85% the size of Japan)
Population
Approx. 89.7 million (As of 2012, UN population statistics)
Capital city
Hanoi
Ethnicity
Kinh (Viet) approx. 86%, 53 other ethnic groups
Language
Vietnamese
Literacy rate
Religion
92.8% (2009)
Buddhism, Catholicism, Cao Dai and other
Source: Basic Country Data, Ministry of Foreign Affairs
1-1
Figure1-3 Total population( including estimates)
Total Population(1,000 persons)
120,000
Total Population
100,000
80,000
60,000
40,000
20,000
0
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Source: World Population Prospects
Figure 1-4: Demographic structure of Vietnam
Source: U.S. Census Bureau “International Data Base (IDB)”
The population of Vietnam is steadily increasing. As of June 2013, it had a population of 92.47 million, ranking
it as the 14th most populous country in the world, or 3rd amongst ASEAN member nations. The urban
population is 28.81 million (32.5% of the total) while the rural population is 59.97 million (67.5%). The capital
of Hanoi has a population of 6.92 million (7.8% of the total population) and Ho Chi Minh has a population of
1-2
7.75 million (8.7%). In terms of ethnic mix, 85% are Kinh and 53 ethnic groups make up the rest of the
population. The average age is 28.7 and 65% of the population is under 40, which makes the country attractive
as a labor market.
2) Macro Economy
Figure 1-5: GDP of Vietnam
(Unit：Billion Dong)
(Unit：%)
Service
Industry and construction
Agriculture, forestry and fishing
Growth Rate
3,500,000
3,000,000
12
10
2,500,000
8
2,000,000
6
1,500,000
4
1,000,000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
0
1992
0
1991
2
1990
500,000
Source: General Statistics Office of Vietnam
In 1986, Vietnam adopted a policy of Doi Moi (renovation) that introduced capitalist production and
distribution systems while maintaining the socialist system. By promoting the Doi Moi policies, economic
growth sped up and by the mid-1990s, the country had even achieved high annual growth rate of 9%, but then
came the 1997 Asian currency crisis and by 1999 the growth rate had slowed down. Since 2000, the high annual
growth rate has remained at the level of 7 to 8%. In April 2006, the 10th Communist Party Congress reviewed
the track record of the Doi Moi policy over the 20 years since it was introduced and adopted a resolution to
promote further market economic policies. Although growth slowed again after the global financial crisis in
2008, the 9th five-year plan for the period 2011 to 2015 aims for an average growth rate of 7 to 8% and to raise
GDP per capita to 2100 US dollars by 2015.
Growth in GDP per capita has slowed since the 2008 global financial crisis, but it still remains strong. The new
ten-year Socio-Economic Development Strategy 2011-2020 also outlines plans to raise GDP per capita to
3,000-3,200 US dollars, which is expected to increase the middle-income classes.
In line with the development of market economy under the Doi Moi policy since 1990, the industrial structure
has seen a decrease in the ratio of the agricultural sector and an increase in the industrial sector. The national
1-3
strategy has targeted further growth in the industrial sector since 2000, including the ten-year national strategy
(2011-2020). The industrial sector will remain at the center of national strategy.
Figure 1-6: Trade Balance of Vietnam
(Unit：million USD)
140,000
Exports
Imports
Balance
120,000
100,000
80,000
60,000
40,000
20,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-20,000
-40,000
Figure 1-7: Foreign Direct Investment (FDI)
(Unit：Million USD)
80,000
70,000
(Unit：Number)
Registered capital
Number of projects(Right Axis)
Implementation capital
1400
1200
60,000
1000
50,000
800
40,000
600
30,000
400
20,000
200
10,000
0
0
1988 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
1-4
Figure 1-8: Sectors of Projects approved for FDI (investment by area from 1988 to 2012
1.5% 1.5%
Manufacturing
1.4% 3.0%
Real estate activities
1.7%
1.9% 1.7%
Accommodation and food service activities
3.6%
Construction
Electricity, gas, stream and air
conditioning supply
Information and communication
4.8%
5.0%
Arts, entertainment and recreation
50.3%
Transporation and storage
Agriculture, forestry and fishing
23.6%
Mining and quarrying
Wholesale and retail trade; Repair of
motor vehicles and motorcycles
Other
Figure 1-9: Amount of investment by region (1988-2012)
Ho Chi Minh City
Ba Ria
15.4%
Hanoi
26.5%
Dong Nai
12.5%
Binh Duong
Ha Tinh
Hai Phong
2.6%
3.1%
3.4%
3.4%
5.0%
10.1%
Thanh Hoa
Phu Yen
8.5%
9.5%
Hai Duong
Other
There is also steady development in investment from all countries. In recent years, the field of investment has
expanded from the manufacturing industry to real estate development. Much overseas investment in Vietnam,
including from Japan, is targeted at the manufacturing industry, but in the south, investment in the service
industry is growing in addition to manufacturing. In 2012, Tokyu Corporation invested 1.2 billion US dollars in
real estate development in Binh Duong Province, accounting for 15% of total investment in the region for that
year. Binh Duong Province ranks fifth for investment amount by region in Vietnam and is also attracting
attention from abroad as an investment location.
1-5
(2) Overview of Project Sector
1) Organizational Structure of the Information and Communication/ICT Sector in Vietnam
The information and communication/ICT sector in Vietnam is controlled by the Ministry of Information
Technology (MIC). With jurisdiction over areas such as communications, broadcasting, the press and
publishing, the MIC is responsible for formulating, issuing and providing guidance on the implementation of
legislation, policies and development strategies in relation to the information and communication industry. It
also grants operating permits for overseas organizations and companies entering the communication
infrastructure sector in Vietnam.
The National Steering Committee on ICT (NSCICT) meanwhile is responsible for supervising the information
and communication sector. As well as advising the MIC and the Prime Minister regarding IT policies and
strategies, the committee provides advice on IT policies and strategies determined directly by the Prime
Minister, and on project-related legislation, policies and development strategies. It also provides advice and
overseas the formulation of IT policies and regulations by provincial governments or individual sectors.
Beneath the MIC, there are ministerial IT departments, provincial departments of information and
communication, and both ministerial and provincial steering committees. These are responsible for planning
and implementing IT policies and strategies in line with development plans, formulated in accordance with
MIC policies and strategies. Tokyu Corporation and its counterpart in this project, Becamex Tokyu, entered into
discussions with the Binh Duong Province Department of Information and Communication regarding an ICT
project in Binh Duong Province in July 2012.
Figure 1-10 Government Organizational Structure in Relation to ICT
National Steering Committee
on ICT: NSCICT
Ministry of Information and
Communications : MIC
Ministerial Steering
Provincial Steering
Committee on ICT
Committee on ICT
IT Departments of Ministries,
Provincial Departments of
ministerial–level and
Information and
government-attached agencies
Communication : DICs
Source: Vietnam Information and Communication Technology White Book 2011
1-6
2) Information and Communication/ICT Policy in Vietnam
A 500 billion VND fund was established in 2004, in accordance with “Decision No.191/2004QD-TTg on the
setting up, organization and operation of Vietnam Public Telecommunication Service Fund”. As a result of the
relevant decision, VNPT is aiming to extend broadband access to all villages, get 10-15% people onto the
Internet in rural areas, and achieve 100% coverage for television broadcasting by the year 2015.
In terms of ICT policy, “Decision No.246/2005/QD-TTg approving the strategy on Vietnam information and
communication technology development till 2010 and orientation towards 2020” was approved and issued in
2005, with the aim of harnessing ICT technology in key domestic sectors. In 2010, “Decision No.1755/QD-TTg
approving the scheme to early make Vietnam a country strong in information and communication technologies”
was issued. This included the overall target of increasing ICT to 8-10% of GDP by 2020, and set out individual
projects in areas such as promoting broadband, including rural communities, and promoting the use of
information and communication devices in the home.
At the provincial level, “Decision No.1605/QD-TTg of the Prime Minister approving the national program of
application of information technology to operations of state agencies” was issued in 2010. The aim is to
completely overhaul communication infrastructure, install IT applications and transfer almost all government
services online by the year 2020, to enable e-government services to commence by 2015.
3) The Current ICT Environment in Vietnam
According to an MIC white paper on the information and communication industry in Vietnam, Internet access is
increasing but was still around the 40% mark overall as of 2012. There were 80 Internet service providers as of
March 2011, headed by VNPT with a share of 72%, followed by FPT Telecom at 13% and Viettel at 10%.
The number of broadband subscribers reached 8.5 million in 2013, equivalent to 9.2% of the population. With
the number of subscribers almost doubling compared to 2012 (4.64%), broadband is evidently starting to take
off, due in part to a government policy aimed at rolling out broadband to villages. The same is true in Binh
Duong Province, as featured in this survey report. According to the “Investment Guidebook to Binh Duong
Province”, an FTTH network has already been laid for Binh Duong New City in the central part of the
province.
The city’s enhanced information and communication infrastructure is one of the key points used to attract
companies. According to a basic survey conducted independently by Tokyu Corporation in August 2012
however, the communication environment in Binh Duong Province is inferior to that in Ho Chin Minh. The
survey also confirmed cases where IT systems essential to business activities are restricted, including
cloud-based production management systems as used by corporate head offices in Japan, high quality video
conferencing systems, and high capacity file transfer systems. Having assessed the quality of Internet services
in Binh Duong Province as part of this survey (full details outlined in Chapter 3), less than 15% of users in the
province were found to have equivalent connection speeds to those in Ho Chi Minh (50Mbps). The quality of
Internet services in Binh Duong Province was also deemed to be particularly poor in the case of international
1-7
connections.
Figure 1-11 Internet Service Providers’ Market Shares
2% 1% 1%
1%
VNPT
10%
FPT Telecom
Viettel
13%
SCTV
EVN Telecom
SPT
72%
Others
Source: Vietnam Information and Communication Technology White Book 2011
Figure 1-12 Internet Access in Vietnam (2000-2012)
インターネット普及率
Internet access
(%)
45
39.49
40
35.07
35
30.65
30
23.92
25
20.76
17.25
20
12.74
15
7.64
10
5
26.55
1.85
0.25 1.27
3.78
0
Source: International Telecommunication Union:ITU
1-8
Figure 1-13 Number of broadband subscribers (2009-2013)
加入者数
Number
of subscribers
Unit:
People
単位：人
9000000
%
10.00%
9.20%
8000000
9.00%
7000000
8.00%
7.00%
6000000
6.00%
5000000
4.64%
4000000
3000000
5.00%
3.89%
3.46%
4.00%
2.46%
3.00%
2000000
2.00%
1000000
1.00%
0
0.00%
2009
2009年
2010
2010年
2011
2011年
2012
2012年
2013
2013年
Source: Vietnam Internet Network Information Center
4) Development Policy for Industrial Parks and Industrial Clusters
The Vietnamese government encourages the development of industrial parks by both domestic and foreign
private companies, in an effort to leverage foreign investment to promote industrialization and regional
development. With the success of the Doi Moi Policy, the economy has been on a growth track and there has
been a sharp rise in foreign investment since the early 1990s. Along with the introduction of regulations for
general industrial zones in 1994, this has led to an increase in the development of large-scale industrial parks
major Japanese trading companies, amongst others.
Figure1-14 Industrial Zones contributed by Japanese Companies
Name of industrial zone
Nomura-Haiphong Industrial Zone
Inaugurated
1994
Location
Hai Phong
Investor
Nomura Securities
Group
Amata City
1994
Dong Nai
ITOCHU
Province
Corporation,
indirect financing
LOTECO industrial zone
1996
Dong Nai
Sojitz Corporation
Province
1996
(VSIP I)
Binh Duong
Mitsubishi
Province
Corporation,
indirect financing
2006
(VSIP II)
Binh Duong
Mitsubishi
Province
Corporation,
indirect financing
2007
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Bac Ninh
Mitsubishi
(VSIP-Bac Ninh)
Thang Long Industrial Park
2000
Province
Corporation
Hanoi suburbs
Sumitomo
Corporation
Thang Long Industrial Park II
2008
Hung Yen
Sumitomo
Province
Corporation
Source: Compiled by survey organization based on various documents
There are 28 industrial parks covering a total area of 13,000 hectares in Binh Duong Province, attracting more
than 750 companies from South Korea, Japan, Taiwan, China and various other countries. There is a particular
focus on electric machinery, electronics, mechanical engineering, food manufacturing, lumber, interiors and
tailoring. The area around Binh Duong New City, which is at the center of this project, will be home to the
Vietnam Singapore Industrial Parks I and II (VSIP I/VSIP II) and My Phuoc Industrial Parks 1, 2 and 3.
Including expansion plans at each of these sites, the area is expected to play a leading role in attracting
companies and to contribute to the future development in the province.
5) Urban Development Policy in Binh Duong Province in Vietnam
Binh Duong Province forms part of Vietnam’s Southern Key Economic Zone, alongside Ho Chi Minh, Dong
Nai Province and Ba-Ria Vung Tau Province. It is also located within the Ho Chi Minh conurbation. Under the
2020 master plan for the Ho Chi Minh conurbation, Thu Dau Mot City in Binh Duong Province will be located
inside the “urban zone surrounding the core city of Ho Chi Minh”. The aim is to develop the surrounding urban
area, which will then spearhead wider economic growth. The 2020 master plan (socio-economic development)
for Binh Duong Province sets out the following basic policy and goals.
Figure1-15: Binh Duong Province 2020 Master Plan (Socio-economic Development)
■ Basic Policy
 To make the most of the province’s geographical advantages, by cooperating with individual provinces
within the Southern Key Economic Zone and with foreign countries, and to aim for stable
socio-economic development.
 To strive to protect the environment, and to improve urban infrastructure and social services in tandem
with economic and industrial development.
■ Main Goals
 Elevate the area to a centrally controlled municipality in 2020.
 Complete industrialization by 2015 (achieve 62.9% secondary industry).
 Improve electricity and water infrastructure.
 Plan economic growth focused on industry and services.
 Enhance provision of housing.
 Improve education and medical care.
Source: Created by the Study team based on Binh Duong Province website
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6) Most Recent Developments Concerning This Project
The development plan for Binh Duong Province described above emphasizes economic development through
industrialization and service industry development, and with this project, we aim to provide a comfortable
lifestyle equal to Japanese level by improving the communications environment in Binh Duong Province. The
services under consideration by Tokyu Corporation are dependent on progress with transport infrastructure
development in Binh Duong Province, including the bus service that will start carrying commuters from Thu
Dau Mot City, in central Binh Duong Province, when the provincial People’s Council moves in 2014. Ho Chi
Minh City Metro Line No.1 is also expected to be in operation by 2018.
Becamex Tokyu meanwhile is planning to open a small-scale commercial facility in the development zone in
2014, and a large-scale commercial facility in 2017.
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(3) The Situation in the Area Covered by the Study
1) Overview of Binh Duong Province
Binh Duong Province is located in a key economic zone in the south of Vietnam (Ho Chi Minh City, Dong Nai
Province, Ba-Ria Vung Tau Province, Binh Duong Province) and is located about 20 km to the north of Ho Chi
Minh. Access to Ho Chi Minh is good, and it is possible to use both the international airport and the
international harbor. Its location covers the area potential for development. The annual GDP growth rate of
Binh Duong Province has been
14-15% compared to the average of 7-8% for Vietnam. To mitigate the
concentration of population in Ho Chi Minh, which is the fastest-growing city in Vietnam, The project has
started on constructing large-scale satellite cities with new government buildings at the core, so it is an area
where further development is expected in the future.
The principal industry used to be agriculture, but foreign direct investment has increased and at present, light
industries became main.. Foreign investments are positively accepted. In the future, the province will develop
the economy as a center of the hi-tech industries, sophisticated commerce, financing, culture and tourism. The
aim is to elevate the area to a centrally controlled municipality same to Hanoi and Ho Chi Minh by 2020.
Figure 1-16 Map of Binh Duong new city, Binh Duong province
Source :BECAMEX TOKYU Website
2) Overview of Binh Duong New City
Binh Duong New City is located about 30 km to the north of the center of Ho Chi Minh. At present, Thu Dau
Mot City is the economic, administrative and industrial center of Binh Duong Province. With plans to move to
new government buildings in 2014 however, the economic and industrial center of the province is likely to shift
from Thu Dau Mot City to Binh Duong New City. Binh Duong New City covers an area of around 1,000
hectares located in the center of Binh Duong City, which in turn covers an area of around 4,200 hectares.
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3) Progress with Urban Development in Binh Duong Province
The urban development in Binh Duong Province is mainly implemented by the 100% government owned
BECAMEX IDC CORP. BECAMEX IDC was established in 1976 and has been in business for over 35 years
developing projects focused on industrial, traffic and urban infrastructure relating to the development of Binh
Duong Province.
・Urban development: The modern Binh Duong New City needs to be completed by 2020, when Binh Duong
Province is aiming to be elevated to a centrally controlled municipality. Urban development is underway to
combine industrial, government, academic, residential and leisure facilities, including the city’s financial center,
the provincial government, universities, homes and commercial facilities. The aim is to create a city with a
population of 125,000 and to generate 400,000 jobs by 2020.
・Industrial infrastructure development: BECAMEX IDC is developing and managing six industrial zones, with
overall investment in all six zones totaling approximately 6.3 billion US dollars. The project has created jobs
for 150,000 people.
・Transport infrastructure development: In an effort to stabilize the investment environment in Binh Duong
Province and elevate it to a centrally controlled municipality by 2020, work is underway on projects such as
National Highway Route 13, an arterial highway connecting the province to the domestic road network, and the
My Phuoc-Tan Van Expressway, connecting Binh Duong Province to important economic zones in the south of
the country.
In 2012, Tokyu Corporation established Becamex Tokyu as a joint venture with BECAMEX IDC and started
planning the Tokyu Binh Duong Garden City, a project with a total budget of approximately 100 billion yen and
comprising about 7,500 residences, commercial facilities and business facilities on a block of land covering
approximately 110 hectares in Binh Duong New City. BECAMEX IDC is not only cooperating with Tokyu
Corporation, but it is also building and developing residential and commercial facilities in partnership with
developers from several other countries, in an effort to create a modern city.
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1-14
Chapter 2 Study Methodology
(1) Study Contents
Vietnam is seeing soaring overseas investment from and entries of Japanese and other foreign companies.
Although a large number of industrial parks have been provided, many are mere provision of industrial land lots
by local developers. On the other hand, industrial zones supplied by Japanese, Singaporean and Thai companies
are comparable to urban development since they include commercial facilities, residences and other living
amenities.
Under these circumstances, Tokyu Corporation is working together with the government sector on new urban
development in the province of Binh Duong. Although we aim to offer comfortable lifestyles at the level of
developed countries, i.e., the level enjoyed in Japan, in accordance with our urban development concept,
constraints on the information and communication technology (ICT) environment in fact have a negative impact
on activities of Japanese companies that entered the region and on the everyday lives of employees and their
families
Thus far, we have made independent efforts as we seek to improve the ICT environment surrounding Binh Duong
New City. At the current stage, we are studying the basic plans of the Vietnamese government, the authorities of
Binh Duong Province and major telecommunications carriers in the ICT sector, as well as their respective
progress. It is vital to comprehend the current actual status in consideration of the issue common to emerging
countries, including Vietnam – failure to implement the plan as scheduled, Comprehension of the actual
conditions gives grounds for determination of specifications of different life services that we strive to establish
as soon as possible.
This survey is thus intended to study the project details of advanced services and the ICT environment as part of
the constraints on project details and specifications.
2-1
Figure 2-1: Examples of Advanced Services Tokyu Corporation Considers Offering
バスサービス
Bus Service
商業サービス
Commercial
Service
位置情報
Positional information
位置情報
Positional information
Transaction
data
取引情報
ポイント
位置情報
Positional
information
Loyalty points
ＩＣＴ基盤
ICT infrastructure
Notification
通報
Telephone
電話
テレビ
Television
お客様宅
Customer’s
residence
連絡
Notification
Hurrying
to the scene
急行
インター
Internet
ネット
Guard
Standby
警備員
Station
待合所
Residential Service (Security)
家中サービス（セキュリティ）
Triple Play service
トリプルプレイサービス
ＩＣＴ基盤の整備を前提として成立する先進国水準の生活サービス
Life services
at the level of developed countries provided based on well-developed ICT infrastructure
Figure 2-2: Overall Network Configuration in Bing Duong Province (information before start of the survey)
<Binh Duong Province connection image>
Customer site
Local Carrier
A, G, H
C
home
B
今回の
Subject
(i) of
調査対象①
the survey
ISP
Subject
(ii) of
今回の
the survey
調査対象②
F
■Japan
Yahoo!
OCN
VNTT
VNPT
Viettel
FPT
Viettel
…
…
Survey Item
A：physical/ logical diagram or route
B：cable route system
C：in house cabling at Customer site (Building, Home, Factory,...)
E：route to each country servers
F:route to ISP network from VNTT, traffic shaping and filter by ISP
G:Construction Management (NW equipment, Cable installation, etc)
H:Operation (formation, monitoring, etc)
Source: NTT Communications
2-2
VNIX or transit
ISP
VNPT
E
■USA
YouTube
Google
Facebook
■Vietnam
Google
Zing
VN Express
(2) Study Method and Structure
1) Survey items
This survey consists of two different surveys: on improvement of the telecommunications environment and on
advanced life services. Details of each survey are as below.
a) Survey on improvement of the telecommunications environment
i) Understanding of Internet communication infrastructure in Binh Duong Province
- Internet connection configurations and routes by telecommunications carriers
- Number of lines between base stations and facilities and distance to facilities
- Indoor wiring in facilities
- Power supply stability
ii) Measurement of Internet quality in Binh Duong Province
- Internet connection speed at facilities in Binh Duong Province
- Line speed in communications between different cities
- Line speed in communication with neighboring countries
- Line speed in communications with Japan
iii) Comprehension of business plans of Vietnamese telecommunications carriers
- Business plans of Vietnam Post and Telecommunications Group and other major carriers (especially for
Binh Duong Province)
- Plan of Bing Duong Province authorities concerning construction of telecommunications environment
- Business plans of local telecommunications carriers
iv) Evaluation of Internet quality in Binh Duong Province
- Summary of (i) above
- Quality evaluation or examination of Internet communication infrastructure based on (i) above
- Quality evaluation or examination of Internet services based on (ii) above
b) Survey on advanced life services
i) Presumption of businesses covered by the service
- Identification of problems and needs through onsite surveys
ii) Business feasibility study
- Study on business schemes, investments and revenues and expenses
2) Survey methods
The survey methods shown below will be implemented.
2-3
Figure 2-3 Survey methods
Survey on improvement of
the telecommunications
environment
Survey on advanced life
services
Onsite survey and interviews
(VNPT,VNTT, Viettel, Department of Information and
Communication)
Onsite survey, interviews and literature research
(BECAMEX Tokyu)
3) Survey structure
The diagram below outlines the structure for the implementation of this survey.
2-4
Figure 2-4: Implementation Structure Diagram
◎Project Manager
ICT Strategy Division Life Service Business Unit General Manager
And Urban Development Business Unit International Business Headquarters
Kenji Murai
TOKYU CORPORATION
◎Financial and Economic Analysis
ICT Strategy Division Life Service Business Unit
Manager And Urban Development Business Unit
International Business Headquarters
Shinichi Motoyama
TOKYU CORPORATION
Manager Katsutoshi Cho
Assistant Manager Nobuyoshi Katsuoka
◎Environmental and Social Analysts
ICT Strategy Division Life Service Business Unit And
Urban Development Business Unit International
Business Headquarters
Yuta Tejima
Rie Hamamoto
Tetsuya Ozawa
The Japan Research Institute,
Limited
NTT Communications
◎Network infrastructure technologies
Corporation
Second Sales Division ICT Sales Senior Manager
Koji Fujioka
Grand Design Office, Service Infrastructure Division
Director Futoshi Sakai
Grand Design Office, Service Infrastructure Division
Osamu Yoshida
Network Facilities Service Infrastructure
Yuichi Kawashima
NTT Communications (Vietnam) Ltd.
NTT Worldwide Telecommunications Corporation
2-5
(3) Study Schedule
The diagrams below show the schedule of implementation of the survey.
Table 2-5: Survey schedule
2012
Activity
2013
Octover
November
Activities in Japan
(i) Preparation of onsite suvey i
(ii) Preparation of onsite suvey ii
(iii) Preparation of onsite suvey iii
(iv) Preparation of onsite suvey iv
(v) Preparation of onsite servey v
(vi) Preparation of onsite suvey vi
(vii) Preparation of questionnaire sheets and survey plan
(viii) Preparation of an interim report
(ix) Preparation of a final report
Activities onsite
(i) onsite suvey i
(ii) onsite suvey ii
(iii) onsite suvey iii
(iv) onsite suvey iv
(v) onsite suvey v
(vi) onsite suvey vi (onsite report)
2-6
December
January
Frbruary
Table 2-6: Onsite survey schedule
Date
Visit Destination
Visitors
Local telecom carrier (VNTT)
Sep. 13
Preliminary onsite survey
Binh Duong Dept. of Information
and Communications
Sep. 30
Oct. 14
and Communications
Tokyu Corp.
Representative from other side
Explanations of objective of the survey
Director
President
Tokyu Corp.
Director
Director of hosting service dept.
Oct. 15
Vietnam’s major telecom carrier
(VNPT)
First onsite survey
Tokyu Corp. and
NTT
Communications
Vice branch manager
Oct. 16
(Viettel)
Nov. 12
Nov. 13
Nov. 18
(VNPT)
(Viettel)
Branch manager
Director
Nov. 19
(VNPT)
Nov. 27
Becamex Tokyu
Nov. 28
Bingh Duong New City and
surrounding industrial parks
Dec. 16
GDS
Dec. 16
(VNPT)
Dec. 17
Becamex IDC
Dec. 18
Becamex IDC
Dec. 18
Fourth onsite survey
Tokyu Corp. and
The Japan Research
Institute
Explanations of the survey using the
questionnaire sheet
Courtesy visit and explanations of the
objective of the survey
Interviews on networks using a
questionnaire
Confirmation of network structure in Binh
Duong New City, ISP connections,
progress with installation, OP, etc.
Inspection tour of data center and service
point
Additional interview using a questionnaire
Confirmation of equipment installed in data
centers, configuration management,
monitoring, progress with installation, etc.
Supplementary interviews to the first
survey with a questionnaire sheet and
inspection of the splitter
Confirmation of optical communication
services, IPTV services and progress with
splitter installation
questionnaire
questionnaire
Inspection tour of the data center and the
service point for facility survey
Interviews on facilities using a
questionnaire
Confirmation of progress with installation
of data center and service point equipment
IT Center Deputy Director
Facility survey in an inspection tour of the
data center
of data center equipment
Tokyu Corp. and
NTT
Communications
Third onsite survey
Sixth onsite survey
Tokyu Corp. and
NTT
Communications
Second onsite survey
Fifth onsite survey
Branch manager
Activities
President
Director
Interviews and discussion with bus,
commercial and security personnel
A survey of the current state of life
services in the form of an inspection
Inspection tour of the data center for
NTT Communications (Vietnam) Ltd. facility survey
General Director
of data center equipment
Representative director/President
Tokyu Corp.
Courtesy call and requests based on survey
results
Vice president
Report on survey
Chairman of the Board/President
Report on survey
President
Report on survey
Dec. 19
Jan. 20
Becamex IDC
Jan. 20
Becamex Tokyu
Jan. 21
Jan. 22
Jan. 22
(VNPT)
and Communications
Tokyu Corp.
Additional interview
Vice president
Report on survey
Director/President
Report on survey
Branch manager
Report on survey
Director
Survey briefing
President
Report on survey
*Between onsite surveys, meetings for details of onsite surveys and schedule coordination will be held in Tokyo.
2-7
2-8
Chapter 3 Justification, Objectives and Technical
Feasibility of the Project
(1) Project Background and Necessity
1) Initiative for Development of Binh Duong New City
Vietnam is seeing its economy growth at a rapid pace despite the growth rate dropping to 5-6%. Binh Duong
Province is located close to Ho Chi Minh City and achieves one of the highest growth rates in the country, with
the annual average GDP growth rate ranging 14-15%. In the province, construction of a large-scale satellite city
centered on relocation to a new provincial office building was commenced in efforts to suppress population
concentration in the suburbs of Ho Chi Minh City.
In response to the Binh Duong New City construction project, we at Tokyu Corporation established a joint
venture, Becamex Tokyu Co., Ltd., with Becamex IDC Corp., a leading developer in Binh Duong Province
mainly involved in construction of industrial parks, residential districts and roads since its foundation in 1976.
Through this joint venture, we are planning a project valued at approximately 100 billion yen for development
of Tokyu Binh Duong Garden City with an approximate block area of 110 ha and site area of 71 ha consisting
of around 7,500 residential houses, commercial facilities, business facilities and other features in Binh Duong
New City, for an approximate total area of 1,000 ha. As the first part of the project, we put into Phase 1 general
sales for the condominium project called Sora Gardens in April 2013. We thus embarked on very-long-term
urban development in efforts to, in more than 10 years, create a new city with a daytime population of 400,000.
We regard coexistence and mutual prosperity with the neighboring industrial complexes, which are one of the
largest scales in Southeast Asia as important to the construction of Binh Duong New City development project,
and as a key to realizing the concept of proximity between workplace and residence. The neighboring industrial
complexes include the Vietnam Singapore Industrial Park (VSIP) and My Phuoc Industrial Park. Their
approximate total area reaches 13,000 ha and already accommodates around 800 businesses, around 200 of
which are Japanese.
3-1
Figure 3-1: Positioning of Binh Duong New City
Binh Duong Province
Binh Duong New City
National Route 13
Ho Chi Minh City
Figure 3-2: Current Look of Binh Duong New City and its Future Look after Development
After Development
＜開発後＞
Currently
＜現在＞
2) Project for Advanced Life Services in Binh Duong New City
In the urban development of Binh Duong New City, we strive to enable residents to enjoy comfortable lifestyles
as close as possible to the level of developed countries, namely Japan.
For this purpose, we independently conducted a simplified basic survey on the information and communication
technology (ICT) environment in the New City and neighboring industrial parks for about 10 months, starting
August 2012. Provision of advanced life services supports our urban development and advancement of the ICT
environment is essential for providing such services.
For determining the details and specifications of the life services Becamex Tokyu will offer, we need to gain
accurate insight as appropriate into the Vietnamese step-by-step plan to construct an ICT environment that will
support operations of our services.
3-2
Our swift action is a transplanting of a Japanese city that will dramatically improve the level of life in Vietnam
and specifically contribute to raising productivity of Japanese firms already in operation at neighboring
industrial parks, encouraging further entries of Japanese businesses and creating opportunities to introduce IT
systems and packages owned by Japanese firms in providing different life services.
3) Significance, Effect, etc. to Partner Country
With an approximate area of 1,000 ha, Binh Duong New City is located inside Binh Duong Industrial-UrbanService Complex of approximately 4,196 ha. The master plan for this complex was approved via the
Vietnamese government with the Prime Minister’s Decision No. 912 on September 1, 2005, and the new city is
at the heart of Binh Duong Province, for which promotion to a city under direct control of the Vietnamese
central government is planned for 2020. Notably, it has been determined that all administrative functions of the
province, including the provincial committee of the Communist Party, people’s committee and people’s
assembly, will be concentrated in the new city.
In Binh Duong New City, development will take place with a focus on the politics and administration center,
which will serve as the provincial authorities’ office, the Singapore-based Mapletree Group’s High-Tech Park,
Eastern International University, the KinderWorld Education Group’s international school, a commercial
finance center, banks, food service areas, offices and residences (in the form of condominiums, townhouses and
detached houses) in addition to the Tokyu Binh Duong Garden City by Becamex Tokyu. The developer
envisions the new city as eventually having 120,000 residents and 400,000 workers.
Binh Duong Province has two master plans concerning information and communications:
a) “Binh Duong Province master plan on development of information technology for 2010 and vision for
2020”
b) “Binh Duong Province master plan on development of post and telecommunications for 2015 and vision for
2020”
Date of Approval: August 13, 2008
Created by: Binh Duong Department of Information and Communications
Approved by: Binh Duong Province authorities
4) Possibility of Participation of Japanese Companies
a) Provision of IT systems for Life Services
It is possible to introduce Japan’s superior technologies and service quality to life services that are likely to
be offered, such as smart cards and security systems.
b) Reinforcement of Data Centers and Provision of Cloud Services
There is considerable potential for use of Japanese technologies in data centers and business application
systems constructed in accordance with local specifications.
3-3
c) Introduction of a Facility Maintenance and Management System
Wires on utility poles in Vietnam, as in many other emerging countries, take on a spaghetti-like form. This
shows that the values of improving future efficiency and reliability by maintaining and managing facilities
have not taken root. It is possible that operation systems for facility management, such as management of
telecommunications equipment and optical fiber lines to be popularized by introducing them in Vietnam
ahead of other countries to establish a first-mover advantage.
3-4
(2) Studies Necessary for Determining Project Details
1) Demand Forecast
In the development of Binh Duong New City with an approximate total area of 1,000 ha, we are planning
construction of Tokyu Binh Duong Garden City consisting of approximately 7,500 residences, commercial
facilities and business facilities in a block area of around 110 ha (or site area of nearly 71 ha) as a project valued
at approximately 100 billion yen. As the first part of the project, we put into Phase 1 general sales for the
condominium project called Sora Gardens in April 2013. We thus embarked on long-lasting urban development
in efforts to, in more than 10 years, create a new city with a daytime population of 400,000 and a resident
population of 125,000.
In addition to the new city project, neighboring industrial complexes include the Vietnam Singapore Industrial
Park (VSIP) and the My Phuoc Industrial Park. Their total area reaches around 13,000 ha. Approximately 800
companies including around 200 from Japan are already in operation in these zones.
Residents of these cities are chiefly comprised of foreign nationals and affluent Vietnamese. Therefore there is
expectation for need to arise for enjoying advanced life services in accordance with the planned population in
the years shown below.
Table 3-3: Future Planned Population in Binh Duong New City
Year
Planned Population
2013
Approximately 800 companies in neighboring industrial
complexes, including around 200 from Japan
202X
Daily population of 400,000,
resident population of 125,000
2) Problem Identification and Analysis Necessary for Studying and Determination of Project Details
a) Life Service Businesses
For the purpose of assuming service businesses which are operated as part of the project, the following
presents the findings of the survey on advanced life services. The three businesses mentioned below are
currently envisioned.
Table 3-4: Life Service Businesses Envisioned by Tokyu Corporation
Business
System to be introduced
Purposes
Bus
Standalone Smart Card Commuter
Pass System
Acquire and analyze data on uses of bus services to
comprehend the progress of the modal shift and to study and
formulate measures to encourage it
Commerce
Standalone Loyalty Point Card
System
Gain an accurate insight into sales of facilities operated as a
developer
(Offer benefits in the form of loyalty points to customers to
minimize off-balance sales [payments not recorded on cash
registers])
3-5
Security
Home Monitoring System for
Residents
Offer security services matched with local conditions
(The Japanese-style unmanned security system with
personnel rushing in response to alarm calls is unmatched
with the present circumstances in Vietnam.)
Staff Monitoring System for
Business
Achieve labor productivity comparable with the Japanese
level in anticipation of a future rise of personnel cost
Before studying and determining the details of these service businesses, we identified the issues and needs as
listed below by conducting onsite surveys, interviews and research of literature. Using these data as a
reference, we will be studying and making decisions on project details.
Table 3-5: Social and Technical Issues and Needs Concerning Life Service Businesses
Social Challenges and Needs
Business
Bus

Mainly
low-income
Technical Challenges and Needs
earners
use

Introduction of smart cards for fare
buses. Motorcycles are mainly used
payment requires a certain level of ICT
for
environment, but it is underdeveloped in
commuting
to
and
from
workplaces. The modal shift is an
Binh Duong Province.
immediate challenge.
Commerce


Individual stores are so hesitant to

Local supermarkets and other
disclose their respective sales that it is
businesses have already adopted
impossible to introduce a lease
standalone loyalty point card systems
agreement under which the rent is
using smart cards. Yet there are
calculated on a prorated basis from the
statutory regulations under which only
tenant’s sales. Commercial developers
banks may issue smart cards with
are therefore under business
electronic money functions and serving
circumstances under which it is
many different purposes. For
difficult to secure profitability.
standalone systems, Vietnam has no de
The general public in Vietnam tends
facto standard since multiple standards
not to trust what is invisible to them
coexist in different parts of the country.
and is unfamiliar with electronic
money in the form of smart cards. It is
therefore challenging to increase the
Security


number of smart card users.
Dishonest acts of personnel and
housekeepers are occasionally seen and
improving social morals is an issue.
With regard to security services,
guards themselves are not so highly
trusted that there is currently no need
for a combination of unmanned
security systems with guards
dispatched in response to alarm calls.

Introduction of unmanned security
systems requires their connection to ICT
lines for transmission of alarm calls, but
it is confirmed that the necessary ICT
environment is unavailable in some parts
of Binh Duong Province.
3-6
In addition, (3) Overview of Project Plan in this chapter refers to business plans and the amount of business
investment, while Chapter 5 - Financial and Economic Viability discusses business earnings and expenses.
b) ICT Environment Improvement
With regard to whether an ICT environment requisite to operation of the life service businesses has been
constructed or what measures to take if any such environment has yet to be provided, we studied issues on
ICT environment improvement and measures for improvement as follows.
i) Comprehending Configuration of Internet Communication Infrastructure in Bing Duong Province
We interviewed VNTT with respect to the configuration and routes of Internet connection by
telecommunications carriers to clarify the network configuration portrayed in the diagram below. The
network infrastructure at the VNTT level and upper levels can be rated as sound on the whole.
3-7
Figure 3-6: Diagram of Network Configuration in Binh Duong New City
<Binh Doung New City>
<Customer Site>
※Q11,12
<Service Point>
※Q11,12
※Q11,12
※Q11,12
ONU
Splitter
1：16
OLT
Q5
NW
redundancy
Q8
Bandwidth
Q9
Distance
between
each
portion
Splitter
1：4
Q6 Number of Split Circuit
(per circuit)
16 or 32 or 64
※Q11,12
(ECI) Hi-Focus O-4F2P
<VNTT DC>
Core
Equip
ment
OLT
0.5G
Viettel
Inter
national
internet
200M
Hutchison
1G
1G VNPT
Q7 Number of OLT
:1
Viettel
Domestic
Number of service point :1
1G
internet
※Q11,12
※Q11,12
VNIX
(Junipor) Ex8208,Ex4200
(ECI)Hi-Focus F152-HB
Hearing items
Single
1+1
N+1
Single
1+1
N+1
Single
1+1
N+1
10Gb
（hearing）
10Gb
（hearing）
20Gb
（hearing）
→1Gb
(Site survey)
→1Gb
(Site survey)
ONU-Splitter
Q10
0.5G
VNPT
→10Gb
(Site survey)
OLT-Core
20km
5km
Q1: Is this a correct NW diagram about
Binh Doung New City
Q2,3,4:Do you have NW diagram
(per circuit) and design policy
Q5: NW redundancy
Q6: Number of Split Circuit (per circuit)
Q7: Number of OLT
Number of service point
Q8: Bandwidth
Q9: Distance between each portion
Q10: Is there demarcation point?
Q11: Equipment Spec
(maker and model number)
Q12: Equipment If type
（1000Base or 100 Base)
Q13-15: Customer circuit info
(number of circuit, circuit service type )
Figure 3-7: Diagram of VSIP1 and My Phuoc Network Configuration
3-8
After interviewing VNPT and Viettel, we identified the network configuration as portrayed below. The
results found that each company has a redundant configuration in its upper- and lower-level networks and
high-capacity bandwidth. We learned that their networks were highly reliable.
Figure 3-8: Schematic of VNPT’s Network (with Details in Binh Duong Province)
Figure 3-9: Schematic of Viettel’s Network (with Details in Binh Duong Province)
3-9
Through interviews we learned the number of lines between base stations and locations and the distances
between them as follows.
Table 3-10: Numbers of Branches and Users’ Lines of Individual Carriers
VNTT
Number of branches by
VNPT
Viettel
16 or 32 or 64
－
－
391 Lines
71,162 users,
1,127 users,
109,588 lines
2,080 lines
splitters
Numbers of active users
and their lines
65 in Bing Duong New City
187 in My Phuoc
139 in VSIP
We conducted an onsite study on indoor wiring at VNTT locations and found that cables were installed at a
relatively high level of quality in the data center, as shown in the chart below. On the other hand, we
observed that splitters were placed in streets outside the data center and that their internal construction
quality was poorer than in the data center. Specifically, splitters are normally installed inside customers’
buildings. However, actual onsite surveys discovered that splitters were temporarily placed inside boxes in
streets and were not protected by guardrails or anything else, and car collisions or other accidents could
affect the lines. In addition, installation work was poorer in quality than in the VNTT data center, given
that the name strips were handwritten and key information for identification of locations (i.e., To/From
information) was not provided.
Table 3-11: VNTT Work Status (Data Center)
No.
Check Item
1
Rack Number Sticker
2
Rack Unit Sticker
Service
Point
(VSIP2)
Yes
VNTT
Data
Centers
Yes
Yes
Yes
Status
- A sticker is attached to the rack.
- Racks with unit numbers were used in the scope of
the confirmation.
3
Device Number
No
Unknown
Sticker
- Data centers: Devices were not checked since
visual inspection through the windows was
conducted.
- Service Point: No sticker was applied because
there was only one identical unit on a rack.
4
Cable Tag
Yes
Yes
- The Tepra was used to provide cable tags at both
ends of each cable.
- The To/From information was provided.
- Apart from the tags, the port number was added.
5
Device Installation
Yes
Yes
3-10
- No displacement of the device in the unit was
detected.
6
Cable Management
Yes
Yes
- Cables were reinforced with Velcro fasteners and
binders.
- Cables were installed from both ends.
- Cables were laid at appropriate lengths and their
excess lengths were processed.
- Cable rails were provided on racks.
Table 3-12: VNTT Work Status (Splitters)
No.
1
Check Item
Splitters
(Binh Duong New City)
Rack Number Sticker
Unknown
Status
- No information was stated since there was only
one splitter box.
2
Rack Unit Sticker
Unknown
- Not applicable since it was a splitter box and not a
rack
3
Device Number
Unknown
- No sticker was attached since there was only one
Sticker
4
Cable Tag
splitter box.
No
- Cable tags were handwritten.
- They had To/From information.
5
Device Installation
Unknown
- No compliance was required because installation
of a splitter alone was involved.
6
Cable Management
Yes
- Cables were reinforced with Velcro fasteners and
binders.
- Cables were laid at appropriate lengths and their
excess lengths were processed.
3-11
Figure 3-13: Splitter Installation Status (Binh Duong New City)
Open
・ケーブルタグ手書き
-Handwritten
cable
記載なし
- No ・From,To
To/From information
given tags
Source: Photographed by the Study Team
In association with power supply stability, VNTT can be rated as having virtually no problems with the
hardware configuration in the data center facility at the present, but there is considered room for future
improvement in operation and maintenance, particularly given that its management of external service
points was poorer since they were farther from the data center. On the other hand, a relatively high level of
facility operation was observed at VNPT Binh Duong. Its facility personnel showed a high level of
understanding in responding to questions in the survey and gave clear replies while showing monitor
screens.
ii) Internet Quality Measurement in Binh Duong Province (VNTT Users)
The diagram below portrays the results of network line speed tests in domestic connections conducted at
several locations in Binh Duong Province. The line speed measured varied considerably depending on the
place. The tests showed poor results, as an average range of line speed was measured at two (or 15%) of
the 13 locations. At three, or 23%, of all the locations where the tests were conducted the speed was below
10 Mbps, to suggest some problem with the construction quality, etc. The tests revealed poor line quality
in the last mile sections in Binh Duong Province.
3-12
Figure 3-14: Results of Network Line Speed Tests in Binh Duong Province (Domestic Connections)
a to m refer to the locations where
tests were conducted. The upper
red line represents an average line
speed of 50 Mbps in domestic
connections in the city while the
lower one is the speed of 10 Mbps
in domestic connections, which
suggests some problem with
construction quality, etc. The
numbers and percentages of
corresponding locations where
tests took place are indicated on
the right side of the diagram.
Similarly, the diagram below illustrates the results of network line speed tests in international connections.
As in domestic connections, the speed varied significantly depending on the location. In the connections to
Japan and Singapore, an average range of line speed was observed at three (23%) of the 13 locations. The
results were poor, as in the line speed tests in domestic connections. A line speed below 2 Mbps, which
suggests poor construction quality, was marked at three locations (23%) in connections to Singapore and at
six locations (47%) in connection to Japan. This reflects a particularly severe problem with line quality in
connection to Japan.
Figure 3-15: Results of Network Line Speed Tests in Binh Duong Province (International Connections)
a to m refer to the locations where
tests were conducted. The upper red
line represents a common line speed
of 10 Mbps in international
connections in the city while the
lower one is the speed of 2 Mbps in
international connections, which
suggests some problem with
construction quality, etc. The
numbers and percentages of
corresponding locations where tests
took place are indicated on the right
side of the diagram.
iii) Learning About Business Plans of Vietnamese Telecommunications Carriers
By means of interviews with Vietnam’s major telecommunications carriers, VNPT and Viettel, we received
replies shown below with regard to their future investment plans in Binh Duong Province. The interviews
revealed the actual state in which they make new capital investment in line with an increase in customers
rather than in accordance with their business plans. We thus learned the reason behind their failure to
provide adequate line quality with respect to the plans’ progress.
3-13
Table 3-16: Major Carriers’ Future Investment Plans in Binh Duong Province
VNPT
Branch expansion plan
Viettel
A plan for relocation to a
By 2015, 52 additional
neighboring building is
branches will be installed.
underway for network
expansion.
‐
Network line expansion plan
The plan is to be finalized with
the network diagram.
MAN-E network expansion plan
‐
‐
Business plan concerning numbers of
‐
720 ADSL users by 2015 and
customers and lines
expansion of FTTH planned
Source: Created by the Study Team based on interviews
Regarding the investment plans of the regional telecommunications operator, we interviewed VNTT and
obtained the following results.
Table 3-17: VNTT’s Future Investment Plan in Binh Duong Province
VNTT’s Reply
Survey Item
Future plan on expanding bandwidth of
Negotiations are in progress concerning contracts on bandwidth
connection between core network and
expansion with upper-level carriers.
upper-level carriers
Plan for increasing service points
Three existing service points
- New City (VSIP2)
- VSIP1
- My Phuoc
According to the future plan, one service point will be added at
Becamex Sora Gardens, where there is currently one level 2
splitter.
Figure 3-18: Scenes of Interviews with Vietnamese Institutions
With Binh Duong Department of
Information and Communications
on October 14, 2013
With VNPT Binh Duong on November
13, 2013
Source: Photographed by the Study Team
3-14
With Viettel Binh Duong on November
13, 2013
iv) Internet Quality Assessment in Binh Duong Province
In the light of the Internet communication infrastructure configuration surveyed in item a and the results of
Internet service quality measurements in item b, the following conclusion can be drawn from the ICT
environment improvement survey findings.
This survey targeted VNTT, VNPT operating an upper-level network and Viettel. Their facilities had a
high level of reliability, given that they were in redundant configuration and had high-capacity bandwidth.
Regarding indoor wiring in the facilities, the cabling quality in the data center was rated relatively high. In
contrast, the splitter installation quality was confirmed as poorer than the indoor construction quality since
splitters were set up in the street outside the data center.
Regarding power supply stability, VNTT is considered to have barely any problems with the equipment
configuration in the data center facility at the present, but there was room for future improvement in
operation and maintenance. VNPT Binh Duong, however, is rated as having a relatively high technical
level.
3) Consideration of Technical Approaches
Introduction of smart card systems to the three businesses mentioned above are not only subject to technical
constraints derived from the present ICT environment in Binh Duong Province but also under the circumstances
under which the smart card standards for Ho Chi Minh City Metro Line 1 have yet to be determined. However,
the FeliCa standard developed by Sony is under consideration. It would be desirable to consider using the
FeliCa technology in the future.
As alternative technologies to FeliCa, there exist Type A, which is widely used mainly in Europe, and Type B,
which is popular in the United States. However, FeliCa has superior response speed, storage capacity and
security features and is widely used not only in Japan but also in Hong Kong, Singapore and other parts of Asia.
3-15
(3) Overview of Project Plan
1) Basic Policy on Determination of Project Details
a) Advanced Life Service Project in Binh Duong New City
Tokyu Corporation’s urban development in Binh Duong New City aims to enable its residents to enjoy a
comfortable living standard as close to that in developed countries, namely Japan, as possible.
To determine the details and specifications of life services provided by Becamex Tokyu, it is necessary to
gain accurate insight as appropriate into the plan on the Vietnam side for phased construction of the ICT
environment that will support operation of the services.
b) Life Service Businesses Currently Envisioned
Becamex Tokyu is considering launching bus services that link with the existing urban district in 2014 in
efforts to increase convenience of commuters and visitors to New City. In addition to the existing housing
business, it will operate a retail business in order to serve as a one-stop provider of advanced life service
businesses.
The following are life service businesses it is considering operating.
 Standalone smart card commuter pass system for buses
 Standalone loyalty point card system in the commercial field
 In-home monitoring system for residents and employee monitoring system for business owners in the
security business
2) Concept Design and Use of Facilities that Reflect it
a) Envisioned Business Expansion
Tokyu Corporation envisions starting with currently feasible services in each of the three businesses and
subsequently expanding into a business of integrated electronic money smart cards.
3-16
Figure 3-19: Envisioned Expansion of Life Service Business
b) Business Concept Chart (Envisioned Services)
The following describes the concepts of the three businesses envisioned in this survey.
i) Advanced Life Service Business Based on and Linked with Electronic Money Smart Cards
In the first stage, the smart card commuter pass service and loyalty point card program will each be
operated on a standalone basis in the bus business and in commerce business, respectively, in Binh Duong
New City. At this stage, there are some local supermarkets issuing their own loyalty point cards in Ho Chi
Minh City, but there is no system in which such cards are distributed on a large scale.
Figure 3-20: Concept of Advanced Life Service Business at First Stage
Binh Duong New City
～2017
IC
Commuter
Pass
Ho CniMing City
Point card
3-17
ii) Advanced Life Service Business Envisioned at Present
Expectations are that smart card tickets based on FeliCa technology will be introduced at the time of
inauguration of Ho Chi Minh City Metro Line 1. This is the technology on which Japan’s PASMO and
Suica smart cards are based and means that a foundation will be created for introduction of similar
electronic money. Becamex Tokyu will advertise the convenience and comfort of contactless culture with
smart cards through standalone operations at the first stage and aims to introduce electronic money when
Ho Chi Minh City Metro Line 1 comes into service.
Figure 3-21: Concept of Advanced Life Service Business at Second Stage
Binh Duong New City
～2017
IC
Commuter
Pass
Ho CniMing City
Point card
Integrate
2018～
Integrated
IC Card
Integrated
IC Card
Commuter Pass/Point card
＋
Electric money
Mutual use
Commuter Pass/Point card
＋
Electric money
c) Business Scheme Diagram
As a joint venture set up by Tokyu Corporation and Becamex IDC, Becamex Tokyu will serve as an operator
of the businesses.
Figure 3-22: Diagram of Business Operation Scheme in Binh Duong New City
BECAMEX IDC
Tokyu Coporation
Joint Company
BECAMEX TOKYU
Commercial
buildings
Point
card
Office
buildings
Executing body
Residential
Security
Bus service
Other urban
facilities,
infrastructure
IC Pass
Binh Duong New City
3-18
3) Details of Proposed Project
As mentioned earlier, this project comprises three different businesses.
The following gives detailed descriptions of the advanced life service businesses currently envisioned.
a) Standalone Smart Card Commuter Pass System for Buses
Table 3-23: Overview of Standalone Smart Card Commuter Pass System Operations for Buses
Item
No. of buses
Launch to Year 1
Year 2
Years 3-4
Years 5-6
Years 7-10
Approx. 10
Approx. 15
Approx. 20
Approx. 30
Approx. 35
No. of cards
issued
Approx. 3,500
Approx.
Approx.
Approx.
Approx.
6,000
9,000
11,000
15,000
No. of drivers
& crew
members
Equipment, etc.
Approx. 50
Approx. 70
Approx.
Approx.
Approx. 170
100
140
Terminals: Bus-mounted terminals (in same quantity as number of buses),
renewal stations, terminals for inspectors, etc.
Hardware: Issuing stations, bus depots, servers, etc.
b) Standalone Loyalty Point Card System in the Commercial Field
Table 3-24: Overview of Standalone Loyalty Point Card System Operations in the Commercial Field
Item
No. of stores
No. of cards issued
From May 2014
2
Approx. 4,500 m
Approx. 15
Approx. 10,000
From December 2015
Approx. 3,000 m2
Approx. 15
Approx. 10,000
2
Approx. 10
Approx. 7,000
From January 2016
Total store floor area
Approx. 3,500 m
2
From September 2017
Approx. 30,000 m
Approx. 5
Approx. 2,000
From March 2020
Approx. 23,000 m2
Approx. 10
Approx. 6,000
2
Approx. 55
Approx. 35,000
Total
Approx. 64,000 m
3-19
c) In-Home Monitoring System for Residents and Employee Monitoring System for Business Owners in the
Security Business
Table 3-25: Overview of Operations of In-Home Monitoring System for Residents and Employee Monitoring
System for Business Owners in Security Business
Year
No. of houses (cumulative total)
No. of security system subscriptions
2014
Approx. 1,000
Approx. 300
2015
Approx. 2,000
Approx. 600
2023
Approx. 52,000
Approx. 16,000
4) Problems with Adoption of Technologies and Systems Proposed, and Respective Solutions
a) Life Service Businesses
Some of the technologies used in this project are in practical application on a commercial basis as life
services we already operate in Japan. The following specifies problems with implementation in Binh Duong
New City.
i) Conflict and Security Problems
As mentioned above, our business is already in operation in Binh Duong Province since we are aware that
there are no problems with the business environment in the province.
ii) Other Problems Regarding the Project
None
iii) Problems with Competitive Projects
None
iv) Site Acquisition Problem
As mentioned above, we have already acquired a 110-ha site for business.
b) ICT Environment Improvement
A survey on construction of an ICT environment requisite to life service businesses has recognized the three
following issues to be addressed for implementation of advanced life service businesses.
○ Line Speed in International Connections
Our international connection speed tests conducted at several locations revealed that the connections to Japan,
etc. were particularly slow and poor in quality. For taking some measures to redress this result, it is necessary to
3-20
make requests to and coordination with the Binh Duong Department of Information and Communications, the
head offices of VNPT and Viettel, and other relevant institutions. It is generally said that Vietnam has a problem
with international Internet connection bandwidth. If a fundamental solution is sought, it is necessary to envision
a large-scale project not confined to within Binh Duong Province. In addition, at the time of submitting a
request for improvement, it will be necessary to present more detailed survey results. It is thought that we will
have to conduct a detailed study on the future direction through continued surveys.
○Quality of Last Mile Lines
We also examined domestic connections and found them of poor quality with low connection speeds. This
survey did not identify the cause of the results since it was not intended to address the situation as an individual
issue. The points are whether the system for troubleshooting in the event of a failure has been prepared in
technical and service terms and whether the service is properly operated, such as in quality improvement
activities needed following trouble. To improve these situations, it is advisable to strive to continually improve
quality through guidance and consulting by experienced experts.
Costs of broadly around 200 million JPY are estimated for the current survey, construction for improvement
and other expenses, if a project on quality improvement is conducted in the last mile lines sections targeting
around 200 Japanese businesses involved in industrial complexes in Binh Duong Province.
○VNTT Operations
VNTT has room for improvement in service operations. Currently serving a small number of customers and
with limited years of operation, it is presumed to have yet to see any major problem, but we think that Tokyu
Corporation, as a service operator, must implement quality control in anticipation of future expansion. To
address this problem, we will recommend that it seek advice and consulting based on experience and
knowledge in worldwide-level services. At the least, it is considered significant to undergo minimal auditing
performed by outside parties on a regular basis to have the motivation to improve services.
These findings may be illustrated as follows.
3-21
Figure 3-26: Schematic of ICT Environment Improvement Survey Results
The discovery of these facts and issues was a result of proactive information disclosure from the Vietnam side
in the survey with the help of the Ministry of Economy, Trade and Industry.
3-22
Chapter 4 Evaluation of Environmental and Social Impacts
(1) Current Situation Analysis of Environmental and Social Aspects
This project is intended to achieve advanced life services (buses, commerce and security) in Binh Duong New
City, which is being developed in Binh Duong Province, Vietnam.
First, in terms of the development project of Binh Duong New City itself, the development business entity,
Becamex IDC, received environmental impact assessment (EIA) approval from Binh Duong People's Committee
on 14 February 2011 in accordance with the provisions of environmental and social consideration-related laws and
regulations of Vietnam as described later (Table 4-1). The new government building of Binh Duong Province,
commercial facilities, living accommodations and other features in the new city are being constructed based on
the following comprehensive approval.
Table 4-1: EIA in Binh Duong New City
Item
Content
Report title
Approval for Environmental Impact Assessment Report of the
Modern Urban Zone Infrastructure Investment and Construction
Project; project area: 709,6068 ha at Phu My ward, Dinh Hoa
ward, Phú Tan Ward, Thu Dau Mot Town, Binh Duong Province
of Becamex IDC CORP.
Date of publication
14 February 2011
Issuing organization
Becamex IDC
Approval authority
Binh Duong People's Committee
The business scope of this project is as follows: (1) introduction of a standalone smart card commuter pass system
for buses, (2) introduction of a standalone loyalty point card system in the commercial field and (3) introduction
of an in-home monitoring system for residents and employee monitoring system for business owners in the
security business. Their impact on the environment and society are shown in Table 4-2.
Table 4-2: Impact on the environment and social aspects of advanced life services (expectations)
Category
Buses
Positive impact
Environmental improvement due to
Negative impact
None expected
modal shift from motorcycles to buses
Commerce
None expected
None expected
Security
None expected
None expected
As mentioned previously, the necessary ICT environment for the above life services is not likely to
involve any improvements to the communication environment that would require environmental or social
factors to be taken into consideration.
4-1
(2) Environmental Improvement Effect Associated with Implementation of
the Project
Introduction of a standalone smart card commuter pass system for buses, one of this project’s objectives, is
intended to be utilized to acquire and analyze passengers’ historical data of using the bus services and to
understand the progress of the modal shift from motorcycles, which are the most common form of transportation
for citizens in Vietnam, to buses, as well as to consider and plan measures to promote a further modal shift.
Therefore, the introduction of the system is positioned as one of the means of modal shift promotion in Vietnam.
The number of motorcycles owned by citizens in Vietnam is rapidly increasing with the increase in national
income due to economic growth, and the resulting worsening of environmental pollution has become a serious
issue. It is expected that the modal shift will help improve this issue.
(3) Impact on Environmental and Social Aspects Associated with
Implementation of the Project
Under the current situation described above, the development business entity, Becamex IDC, has received EIA
approval for the Binh Duong New City development project from Binh Duong People's Committee. No negative
impact on environmental and social aspects is expected regarding the implementation of advanced life services,
the business objective of this project.
(4) Overview of Environmental and Social Consideration-related Laws and
Regulations of the Partner Country and Required Measures to Comply
with Them
The environmental and social consideration-related laws and regulations that pertain to the development of the
new city are described herein.
The relevant laws of Vietnam are based on the new Environmental Protection Law, which came into effect in July
2006. This law also includes the EIA. New construction projects, including those in the city districts, centralized
residential districts and industrial complexes, are defined as the businesses subject to the EIA in Article 18,
Section 1 of the Law (Table 4-3).
4-2
Table 4-3: EIA-related laws and regulations of Vietnam
Overview
Covered

Important national projects
business

Businesses that use part of the land of nature reserves, national parks, historical and
cultural ruins, natural heritage or registered scenic areas, or businesses that can negatively
affect them

Businesses that are at risk for adversely affecting water resources, watersheds, coastal
areas and ecosystem protection districts

Infrastructure construction projects in economic zones, industrial complexes, high-tech
complexes, export processing zones and cottage industry villages

New construction projects in city districts and centralized residential districts

Businesses that develop or use large-scale groundwater or natural resources

Other businesses with significant adverse impact on the environment
(Environmental Protection Law, Article 18, Section 1)
Timing

At the same time that the business feasibility study report is submitted (Environmental
Protection Law, Article 19, Section 2)

Investment, construction and development permits are approved and issued only after
approval of the environmental impact assessment report (Environmental Protection Law,
Article 22, Section 4)
Contents
1. Detailed description of the business
2. Evaluation of the environmental state, environmental susceptibility and environmental
capacity
3. Environmental impact, evaluation of affected environmental components and
socioeconomic elements and risk of accident
4. Mitigation measures and prevention and corrective measures of environmental accidents
5. Commitment to environmental protection measures in the construction and operation
process of the business
6. Environmental management and audit plan
7. Budget for environmental protection
8. Pros and cons by a commune or representatives of a resident community of the project area
9. Source of numerical and other data evaluated (Environmental Protection Law, Article 20)
Review and
approval
1. Businesses that the parliament, government or prime minister decided or provide approval
for, and businesses across multiple industrial fields or provincial agencies
2. Businesses other than those in 1 over which the central government or other ministries
have approval authority
→Including the project approval authority, environment specialized agencies and experts in
the provincial agency of the project area
3. Businesses over which peoples’ committee at the provincial level has the approval
authority
→Including the provincial peoples’ committee and environment specialized agencies and
4-3
experts at the provincial level
(Environmental Protection Law, Article 21, Sections 1 to 3)
Organization
The organization for approval and organization responsible for establishing a review board
for approval
according to the three classifications mentioned in the column of review and approval
and
Approval must be reviewed and decided within 15 working days from the date of receipt.
organization
1. Ministry of Natural Resources and Environment
responsible for
2. Central government and other ministries
establishing the
3. Each provincial peoples’ committee (Environmental Protection Law, Article 21, Section 7)
review board
Review
authority
(Environmental Protection Law, Article 22, Sections 1 and 3)
1. Businesses over which the prime minister, government or parliament has the approval and
decision-making authority, and businesses across multiple industrial fields or provincial
agencies: Within 45 days of the date of receipt of the documents
2. Others: Within 30 working days of the date of receipt of the documents (Ordinance on the
Enforcement of the Environmental Protection Act, Decree No. 80/2006/ND-CP Article 12)
Source: Created by the Study Team in reference to JICA report
(5) Matters to Be Implemented by the Country (Project Developer and
Other Relevant Organizations) to Realize the Project
The project developer must prepare the EIA report, apply it and receive an approval in accordance with the
procedure flow shown in Figure 4-4 below. As mentioned above, Becamex IDC has already completed the
approval process on the EIA regarding this project, so no additional procedures are expected to be required.
4-4
Figure 4-4: Procedure flow on EIA report of Vietnam
Source: Created by the Study Team in reference to JICA report
4-5
4-6
Chapter 5 Financial and Economic Evaluation
(1) Estimates of Total Project Costs
Based on the conditions described in the previous chapters, the financial and economic viability are examined
herein.
The projects to be evaluated are as follows: 1) Introduction of a standalone smartcard commuter pass system for
buses, 2) Introduction of a standalone loyalty point card system in the commercial field and 3) Introduction of an
in-home monitoring system for residents and employee monitoring system for business owners in the security
business.
1) Introduction of standalone smartcard commuter pass system for buses
Once the equipment needed to issue and read smartcard commuter passes has been procured in Japan, it will be
shipped to Vietnam and installed as part of the relevant system. Table 5-1 outlines terms for the integration of
individual project costs. Integrated costs are then outlined in Table 5-2.
Table 5-1: Prerequisites for Integration of the Project cost
Equipment
Unit cost: Quoted by Japanese card company
Volume: Based on Tokyu Corporation’s bus business plan
procurement costs
Smartcard
procurement costs
Volume: Based on Tokyu Corporation’s bus business plan
Induction training
Quoted by Japanese card company
costs
Shipping costs
Estimated by study team
Installation costs
Maintenance costs
Table 5-2: Result of Integration of Project Cost
2013
L
Equipment
IC Card
Educational
Expenses
T ransportation
Installation
O&M
T otal
T otal(F)
2014
0
0
F
35.76
0.88
0
0
60.72
0
60.72
L
2015
F
L
2016
0
0
0
0
0
0
F
3.6
1.46
2.25
0
0
0
0.1
0
0
38.99
39.29
0
0
80.77
80.77
0
0
0.3
0.3
0.7
0
0
87.22
87.22
L
2017
0
0
F
5.28
2.14
0
0
0
0
0.3
5.36
5.79
0
0
94.66
94.66
L
2018
F
L
2019
0
0
0
0
0
0
F
6.96
2.82
0
0
0
0
0
0
0.3
7.72
8.19
0
0
102
102
0
0
0.3
0.3
0.8
0
0
109.4
109.4
L
2020
F
L
2021
0
0
0
0
0
0
F
8.64
3.5
0
0
0
0
0
0
0.3
10.08
10.62
0
0
116.8
116.8
0
0
0.3
0.3
0.88
0
0
124.6
124.6
L
2022
F
L
2023
F
L
F
T otal Cost
L
F
0 60.24
0
10.8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2.25
0
0
0.3
12.44
13.06
0
0
133.1
133.1
0
0
0.3
0.3
0.96
0
0
142
142
0
0
0.3
0.3
1
0
0
151.6
151.6
0
0
0.3
0.3
1.05
0
60.72
1142
1203
0.1
0
3
76.39
82.33
(Units: L: Million VND; F: Million JPY (JPY = 202.4 VND))
5-1
2) Introduction of standalone loyalty point card system in the commercial field
Once the equipment needed to read loyalty point cards has been procured in Japan, it will be shipped to
Vietnam and installed as part of the relevant system. Table 5-3 outlines terms for the integration of individual
project costs. Integrated costs are then outlined in Table 5-4.
Table 5-3: Prerequisites for Integration of Project Cost
Equipment
Volume: Based on Tokyu Corporation’s commercial facility
procurement costs
business plan
Smartcard
Volume: Based on Tokyu Corporation’s commercial facility
procurement costs
Shipping costs
business plan
Installation costs
Maintenance costs
2013
L
Equipment
IC Card
T ransportation
Installation
O&M
T otal
T otal(F)
0
0
0
60.72
0
60.72
2014
F
8.5
0
0.1
0
0
8.6
8.9
L
0
0
0
0
80.77
80.77
2015
F
4.2
2.5
0
0
0.3
7
7.4
L
0
0
0
0
87.22
87.22
2016
F
4.2
2.5
0
0
0.3
7
7.43
L
0
0
0
0
94.66
94.66
2017
F
L
3
1.79
0
0
0.3
5.09
5.56
0
0
0
0
102
102
2018
F
0.9
0.54
0
0
0.3
1.74
2.24
2019
L
F
0
0
0
0
109.4
109.4
2020
L
0
0
0
0
0.3
0.3
0.84
F
0
0
0
0
116.8
116.8
L
0
0
0
0
0.3
0.3
0.88
0
0
0
0
124.6
124.6
2021
F
2.4
1.43
0
0
0.3
4.13
4.75
L
0
0
0
0
133.1
133.1
2022
F
L
0
0
0
0
0.3
0.3
0.96
0
0
0
0
142
142
2023
F
L
0
0
0
0
0.3
0.3
1
F
0
0
0
0
151.6
151.6
0
0
0
0
0.3
0.3
1.05
T otal Cost
L
F
0
23.2
0
8.76
0
0.1
60.72
0
1142
3
1203 35.06
41
3) Introduction of in-home monitoring system for residents and employee monitoring system for business
owners in the security business
Once the equipment has been procured in Japan, it will be shipped to Vietnam and installed as part of the
relevant system. Table 5-5 outlines terms for the integration of individual project costs. Integrated costs are then
outlined in Table 5-6.
Table 5-5 Integration terms for project costs
Quoted by Japanese security company
Equipment
procurement costs
Maintenance costs
Quoted by Japanese security company
2013
L
Equipment
O&M
T otal
T otal(F)
0
0
0
2014
F
100
0
100
100
L
2015
F
0
0
0
L
0
78
78
78
2016
F
0
0
0
L
0
78
78
78
2017
F
0
0
0
L
0
78
78
78
2018
F
0
0
0
L
0
78
78
78
2019
F
0
0
0
L
0
78
78
78
2020
F
0
0
0
L
0
78
78
78
2021
F
0
0
0
L
0
78
78
78
2022
F
0
0
0
L
0
78
78
78
2023
F
0
0
0
L
0
78
78
78
F
0
0
0
0
78
78
78
T otal Cost
L
F
0
100
0
780
0
880
880
5-2
(2) Summary of Results of the Preliminary Financial and Economic
Analysis
1) Project implementation system
The following projects are supposed to be implemented and funding organized by Becamex Tokyu, as the
developer in Binh Duong New City: (a) introduction of a standalone smartcard commuter pass system for buses,
(b) introduction of a standalone loyalty point card system in the commercial field and (c) introduction of an
business.
2) Summary of financial analysis results
a) Introduction of standalone smartcard commuter pass system for buses
 Prerequisites for analysis
The benefits to the operator from the introduction of a standalone smartcard system will be analyzed in
terms of the reduction in staff labor costs. In Vietnam, two staff generally operate a bus service: a driver
and a fare collector. With the introduction of a smartcard commuter pass system it is expected that a fare
collector will not be required. The reduction of the labor cost for one employee is considered as a company
benefit.
Table 5-7: Prerequisites for financial analysis
Project period
Project cost
Staff labor cost
(Reduction)
10 years
See the integration of the project cost shown in (1) above
Unit cost: Wages calculated per person, based on the statutory
minimum wage for 2012 multiplied by the wage growth rate for
every fiscal year
Volume: Number of ticket collectors required each year, based on Tokyu Corporation’s
bus business plan
Wage growth rate
Based on IMF inflation rate (projected)
Based on 2018 figures from 2018 onwards (no projections
published as yet)
Depreciation period
Working capital
Liquidation/residual
value
Corporation tax
Discount rate
5 years (determined arbitrarily within statutory life span)
There will be no change in working capital
There will be no liquidation/residual value at the end of the project
period
Not applicable (no revenue from this project on its own)
9.00%, Vietnamese 10-year government bond yields, is used
(ADB public data / the rate of 18 Dec, 2013).
5-3
 Summary of analysis results
Table 5-8 Results of financial analysis
Cash flow
See Table 5-9
FIRR
14.51%
(financial internal rate of return)
NPV (net present value)
3.228 billion VND (≒15.9 million JPY)
5-4
Table 5-9 Cash flow in relation to the introduction of a standalone smartcard commuter pass system on bus services
Effect (A)
System costs
Training costs
System operating costs (labor costs)
System shipping costs
System installation costs
System maintenance costs
Card costs (FelicaLiteS)
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year
2014
Unit
Start date
2015
2016
2017
2018
2019
2020
2021
2022
2023
Thousand
VND
-
797,784
1,225,884
1,906,092
2,053,644
2,867,364
3,061,116
4,025,940
4,297,260
4,586,940
4,897,020
-
797,784
1,225,884
1,906,092
2,053,644
2,867,364
3,061,116
4,025,940
4,297,260
4,586,940
4,897,020
7,951,284
141,492
1,171,743
1,656,959
162,708
2,149,460
177,480
2,642,500
193,776
202,752
212,340
7,237,824
455,400
0
0
80,772
0
0
60,720
0
728,640
0
87,216
0
0
60,720
295,167
1,068,672
0
94,656
0
0
60,720
432,911
0
0
101,988
0
0
60,720
0
1,408,704
0
109,380
0
0
60,720
570,656
0
0
116,760
0
0
60,720
0
1,748,736
0
124,644
0
0
60,720
708,400
0
0
133,056
0
0
60,720
0
0
0
142,032
0
0
60,720
0
0
0
151,620
0
0
60,720
0
Reduction in labor costs (conductors)
Cost price (B)
1st year
Thousand
VND
〃
〃
〃
〃
〃
-
Depreciation costs (C)
〃
-
0
1,447,565
1,593,293
1,807,027
1,807,027
2,088,768
641,203
845,222
631,488
631,488
Gross profit (D) *D=A-(B+C)
〃
-
656,292
(1,393,423)
(1,344,160)
83,909
(1,089,123)
794,868
742,237
3,258,262
3,752,700
4,053,192
-
0
1,447,565
1,593,293
1,807,027
1,807,027
2,088,768
641,203
845,222
631,488
631,488
〃
0
656,292
54,141
249,133
1,890,936
717,904
2,883,636
1,383,440
4,103,484
4,384,188
4,684,680
〃
(7,951,284)
0
0
0
0
0
0
0
0
0
0
〃
(7,951,284)
656,292
54,141
249,133
1,890,936
717,904
2,883,636
1,383,440
4,103,484
4,384,188
4,684,680
Corporation tax
Working capital
5-5
Depreciation adjustment costs (E)
Operating cash flow (F) * F=D+E
Investment cash flow (G)
Free cash flow (H) * H=F+G
20,240
60,720
177,100
〃
Thousand
VND
Thousand
VND
b) Introduction of standalone loyalty point card system in the commercial field
The benefits to the operator from the introduction of a standalone loyalty point card system will be
analyzed in terms of the increase in rental income due to increased sales from businesses using the
commercial facilities. Introducing a loyalty point card system will enable the operator to accurately
monitor sales from tenanted stores and collect rent fairly in line with sales. Consumer purchase histories
collected by the operator can also be used by tenanted stores for marketing activities. This will enable
them to increase their individual sales, which in turn can be expected to increase rental income for the
operator.
Project period
10 years
Project cost
Increase in rental income Unit cost: 10% of rental income per square meter, based on
Tokyu Corporation’s business plan
Volume: Area of commercial facility (square meters),
based on Tokyu Corporation’s business plan
5 years (determined arbitrarily within statutory life span)
Depreciation period
Working capital
There will be no liquidation/residual value at the end of
value
the project period
Corporate Tax
Based on the tax regulation (22% before up to 31
Dec, 2015 and 20 % after 1 Jan, 2016)
*See JETRO website
Discount rate
9.00%, Vietnamese 10-year government bond yields, is
used (ADB public data / the rate of 18 Dec, 2013).
Cash flow
See Table 5-12
FIRR
13.60%
1.350 billion VND
(≒ 6.7 million JPY)
5-6
Table 5-12 Cash flow in relation to the introduction of a standalone loyalty point card system in the commercial sector
Sales (A)
System costs
System operating costs (labor costs)
System shipping costs
System installation costs
Card costs (FelicaLiteS)
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
491,273
1,055,711
1,842,290
1,833,701
2,696,517
2,869,080
2,869,080
2,869,080
491,273
1,055,711
1,842,290
1,833,701
2,696,517
2,869,080
2,869,080
2,869,080
1,504,016
1,124,005
453,297
170,100
177,480
960,267
193,776
202,752
212,340
850,080
87,216
0
0
60,720
506,000
607,200
94,656
0
0
60,720
361,429
182,160
101,988
0
0
60,720
108,429
0
109,380
0
0
60,720
0
0
116,760
0
0
60,720
0
485,760
124,644
0
0
60,720
289,143
0
133,056
0
0
60,720
0
0
142,032
0
0
60,720
0
0
151,620
0
0
60,720
0
Start date
Thousand
VND
-
113,984
250,698
-
113,984
250,698
1,801,360
1,497,572
1,720,400
850,080
80,772
0
0
60,720
506,000
Increase in rent
Cost of sales (B)
1st year
Unit
Thousand
VND
〃
〃
〃
〃
20,240
60,720
-
〃
-
230,736
400,752
522,192
558,624
558,624
327,888
255,024
133,584
97,152
97,152
〃
-
(1,614,324)
(1,654,070)
(1,154,924)
43,790
1,113,566
1,328,333
1,481,226
2,541,720
2,569,176
2,559,588
FALSE
FALSE
FALSE
8,758
222,713
265,667
296,245
508,344
513,835
511,918
Corporation tax (E)
Working capital
Depreciation adjustment costs (F)
5-7
Operating cash flow (G) * G=D-E+F
Investment cash flow (H)
Free cash flow (I) * I=G+H
〃
Thousand
VND
Thousand
VND
-
230,736
400,752
522,192
558,624
558,624
327,888
255,024
133,584
97,152
97,152
〃
0
(1,383,588)
(1,253,318)
(632,732)
593,656
1,449,477
1,390,554
1,440,005
2,166,960
2,152,493
2,144,822
〃
(1,801,360)
0
0
0
0
0
0
0
0
0
0
〃
(1,801,360)
(1,383,588)
(1,253,318)
(632,732)
593,656
1,449,477
1,390,554
1,440,005
2,166,960
2,152,493
2,144,822
c) Introduction of in-home monitoring system for residents and employee monitoring system for business
owners in the security business
Each household’s usage fee for the in-home monitoring system for residents and employee monitoring
system for business owners in the security business will go to the business’ income.
Project period
10 years
Project cost
Determined arbitrarily by Tokyu Corporation
System usage fee
Number of households
Based on the assumption that systems will be installed in
using the system
30% of all homes built in Binh Duong New City
(estimated based on Tokyu Corporation’s housing business
plan)
10 years (determined arbitrarily within statutory life
Depreciation period
span)
Working capital
There will be no liquidation/residual value at the end of
value
the project period
Corporate Tax
As required by law (standard rate of tax: 25% up to 2013,
falling to 22% from January 1, 2014, and 20% from
January 1, 2016)
*See JETRO website
Discount rate
9.00% (based on yield on Vietnamese 10-year bonds (data
published by ADB on December 18, 2013))
Cash flow
See Table 5-15
FIRR
14.89%
26.612 billion VND (≒131.5million JPY)
3) Review of the economic analysis
The following qualitative organizing will be conducted in regards to social benefits that can be expected by
implementing each project: (1) introduction of a standalone smartcard commuter pass system for buses, (2)
introduction of a standalone loyalty point card system in the commercial field and (3) introduction of an
business.
5-8
Table 5-15 Cash flow in relation to the introduction of home monitoring systems in the security
Sales (A)
System costs
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Unit
Start date
Thousand
VND
-
3,060,288
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
241,762,752
-
3,060,288
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
12,241,152
241,762,752
20,240,000
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
15,787,200
20,240,000
-
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
0
15,787,200
Income from usage fees
Cost of sales (B)
1st year
Thousand
VND
〃
〃
〃
〃
〃
-
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
〃
-
(14,750,912)
(5,570,048)
(5,570,048)
(5,570,048)
(5,570,048)
(5,570,048)
(5,570,048)
(5,570,048)
(5,570,048)
223,951,552
FALSE
FALSE
FALSE
FALSE
FALSE
FALSE
FALSE
FALSE
FALSE
44,790,310
Corporation tax (E)
Working capital
5-9
Depreciation adjustment costs (F)
Operating cash flow (G) * G=D-E+F
Investment cash flow (H)
Free cash flow (I) * I=G+H
〃
Thousand
VND
Thousand
VND
〃
-
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
2,024,000
0
(12,726,912)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
181,185,242
0
0
0
0
0
0
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
(3,546,048)
181,185,242
〃
(20,240,000)
0
〃
(20,240,000)
(12,726,912)
0
(3,546,048)
0
(3,546,048)
0
(3,546,048)
Table 5-16: Expected social benefits by implementing each project
User benefits
 Improved convenience by enabling passengers to be
without small change and to smoothly get on and off
Social benefits
smartcard commuter pass system
 Smoother getting on and off the bus will enable stoppage
for buses
time to reduce and contribute to alleviation of traffic
congestion
 Contribution to environmental improvement through
promoting the modal shift
User benefits

loyalty point card system in the
commercial field
Economic benefit from receiving loyalty point
Social benefits

Encouraging people to purchase products will boost
consumer spending, which will contribute to regional
economic growth
User benefits
Introduction of in-home
monitoring system for residents
and employee monitoring system
for business owners in the
security business
 Economic benefits from improvements in services from
housekeepers, employees, etc.
Social benefits
 Improved security
 Realization of disciplinary work environment
5-10
Chapter 6 Planned Project Schedule
As mentioned in Chapter 3, we assume operation of the project as shown in the figure below, concerning: (1)
introduction of a standalone smart card commuter pass system for buses, (2) introduction of a standalone loyalty
point card system in the commercial field and (3) introduction of an in-home monitoring system for residents and
employee monitoring system for business owners in the security business.
Figure 6-1. Envisioned Expansion of Life Service Business
Table 6-2 below shows the implementation schedule of the project. The schedule does not include a schedule
related to environmental and social considerations because, as described in Chapter 4, the project does not include
any item that will have a serious impact on those aspects.
6-1
Table 6-2. Project Implementation Schedule (draft)
Fiscal 2013
1
1. Introduction of smart
card commuter passes
system design and
specifications
(2) Tendering
2
3
Fiscal 2014
4
5
6
7
8
9
10
Fiscal 2015
11
12
1
2
3
4
5
Start of bus services
2. Trial of loyalty point
card system
(2) Tendering
Opening of small-scale commercial facility
3. Introduction of employee
monitoring system
(2) Tendering
Introduction of employee monitoring
system
Source:Created by the Study Team
6-2
6
Chapter 7 Ability of Local Organizations to Implement the
Project
(1) Profiles of Organizations Involved in the Project
The following organizations are involved in the implementation of the project.
Table 7-1: Organizations involved in the project
Organization
Becamex IDC
Jurisdiction and authority
A development corporation in Binh Duong Province, Becamex
IDC, promotes urban development of the province. It is the joint
venture partner of Tokyu Corporation.
Becamex Tokyu
Joint venture company with Becamex IDC and a provider of
advanced life services
(2) Ability of Organizations Related to Implementation of the Project
Becamex Tokyu, one of the organizations involved in the implementation of project items, is an organization
engaged in the advanced life service business. It was established jointly by Tokyu Corporation and Becamex IDC
for the development of Binh Duong New City. Therefore, its ability to implement the project will be best
described by details of Becamex IDC as its parent company, which are as follows.
1) History
Becamex IDC is a limited company wholly funded by the government of Binh Duong Province. For more than
35 years since its establishment in 1976, the company has been highly regarded for its superior track record and
high brand power in the field of infrastructure development, including industrial parks, residential areas, urban
areas and transportation systems.
It has remained highly competitive by diversifying its businesses through its 28 subsidiaries. The subsidiaries
work in a wide variety of fields, including securities, finance, insurance, banking, construction, trading, real
estate, service, telecommunications, information technology, concrete production, construction material, mining,
pharmacies, medical care and education.
2) Corporate profile

Total statutory capital: 5,500 billion VND (approx. 30 billion JPY)

Total business capital: More than 10 trillion VND (more than approx. 500 billion JPY)

Number of employees: 3,922 (management: 230; foreign experts: 30; engineers: 90)
7-1
3) Major achievements, etc.

Development of industrial infrastructure: Becamex IDC has succeeded in developing advanced
international industrial parks and industrial districts. More than 95% of the industrial parks have been
filled with total investment capital of about $6.3 billion, creating jobs for 150,000 people.

Development of transportation infrastructure: Build-operate-transfer (BOT) projects such as the National
Highway 13 between Ho Chi Minh City and Binh Duong Province and the expressway between My Phuoc
and Tan Van have contributed to the economic development. They have also improved the goods
circulation between Binh Duong and the entire area of the Southern Key Economic Zone as well as the
Highland area.

Urbanization: Large-scale project in progress:
 Becamex City Center: Becamex City Center is the first modern and model urban center in Binh Duong
Province. The project occupies an area of 6 ha with fully equipped facilities such as commercial houses,
high-class condominiums, offices for lease, hotels, restaurants and supermarkets. It is the economic,
political and social center of Binh Duong New City.
 Ecolakes Project in the My Phuoc Industrial Park: This is a jointly operated project between Becamex
IDC and the Setia Group, a major developer in Malaysia. This project is a typical model offering high
standards for new living in a modern residential area designed to harmonize with nature and the
environment.
 Binh Duong New City: This has been built on an area of about 1,000 ha in the Binh Duong
Industry-Service-Urban Complex. This new city will be the political and administrative center of Binh
Duong Province, with the peoples’ committee and the peoples’ council of the province located within it.
It will be ready to serve more than 125,000 residents and provide workplaces for more than 400,000
people.

Medical and educational development:
 My Phuoc General Hospital: A general hospital with 500 beds and a site area of about 2 ha
 Eastern International General Hospital: A project for building a general hospital with 1,000 beds and a
site area of approximately 12 ha.
 Eastern International University: A university constructed on an area of about 26 ha, which will accept
about 24,000 students every year (plan)
7-2
Chapter 8 Technical Advantages
of Japanese Companies
(1) Presumable Form of Participation of Japanese Companies (in
investment, supply of materials and equipment, operation and management
of facilities, etc.)
We will engage in the businesses mentioned in the preceding chapters: (1) introduction of a standalone smart card
commuter pass system for buses, (2) introduction of a standalone loyalty point card system in the commercial
field and (3) introduction of an in-home monitoring system for residents and employee monitoring system for
business owners in the security business. It is assumed that Becamex Tokyu will engage in investment,
procurement of materials and equipment, and operation and management for all these businesses.
Having carried out a survey into improvements to the communication environment in Binh Duong Province,
which will be a prerequisite for all three projects, results indicate that there is room for improvement with regard
to how services are operated by local communications carrier VNTT. The next step will be to look into Japanese
companies providing operational training and consulting services, based on their expertise and experience of
providing services on a global level.
1) Form of Investment
It is assumed that funding for the three projects will be organized by Becamex Tokyu, a joint venture between
Tokyu Corporation and BECAMEX IDC.
Becamex Tokyu will be launching a shuttle bus service linking Thu Dau Mot City, in the central part of Binh
Duong Province, and Binh Duong New City in 2014. Commercial facilities due to open in 2014 meanwhile are
considering introducing smart cards as loyalty point cards. Construction is currently underway on Ho Chi Minh
City Metro Line 1, which will serve as an urban transport link between Ho Chi Minh City and Suoi Tien in
Binh Duong Province. The line will be mainly used by people living in Binh Duong Province and commuters to
Binh Duong New City. It will therefore be crucial to use the same standards between smart cards for services in
Binh Duong Province and on Metro Line 1, in the interests of convenience and increasing passenger numbers.
As urban rail links in Vietnam have been built with assistance from various different countries, there is a lack of
standardization in terms of smart card standards on different lines. FeliCa is nonetheless being considered as the
standard for smart cards on Metro Line 1. Becamex Tokyu will also take into account compatibility with IC
card standards on Metro Line 1 when introducing smart card bus commuter passes and loyalty point cards in the
future. This project should ideally be included as part of public-private initiatives aimed at promoting smart
cards, so that it is eligible to receive financial assistance from the Japanese government. In terms of specifics,
materials and equipment for activities such as installing smart card commuter pass systems could be provided
as part of a JICA technical cooperation project, with technical transfer and other such matters then handled by
the Department of Transport and other government agencies in Vietnam.
8-1
The Project to Promote Private-Sector Technologies for Socioeconomic Development in Developing Countries,
a JICA public-private partnership scheme, could also be used to provide training and consulting services to help
VNTT improve operations.
2) Supply of Materials and Equipment
We are considering procuring the materials and equipment for project implementation in Japan and exporting
them to Binh Duong Province in Vietnam. The following specifies the materials and equipment that need to be
procured.
Figure8-1 Materials and equipment required for a standalone smart card commuter pass system for buses
Material or equipment
Description
to be introduced
Contactless smart cards
Smart cards equipped with built-in antennas to send and
receive data with the use of radio waves from external
terminals
Bus-mounted terminals
Communication terminals to be installed in buses
Terminals for depots
Terminals to be installed at bus renewal stations (depots)
that retrieve data on incoming and outgoing passengers
from bus-mounted terminals
Terminals for inspectors
Portable terminals that independently retrieve data on
incoming and outgoing passengers from each bus
Systems for issuing
Systems placed at each depot for entering data on incoming
stations
and outgoing passengers on individual buses and other data
Depot system
A main system that collects data from systems at individual
renewal stations
Figure8-2 Materials and equipment required for a standalone loyalty point card system
Description
to be introduced
Contactless smart cards Smart cards equipped with built-in antennas to send and
receive data using radio waves from external terminals
Terminals for stores
Terminals installed in stores for reading data stored in
smart cards
Communication
Dedicated communication equipment with LAN support
equipment
Head office
Associates the ID of a card with personal information to
management software
manage and analyze the amounts of purchases made by
the holder, points earned, the history of purchases using
points owned and the history of use of points
8-2
Figure8-3 Materials and equipment required for monitoring systems
Description
to be introduced
Portable terminal
Portable devices capable of checking home security
while the user is out
Security Camera
Security camera systems capable of recording images
System
using fixed camera with built-in infrared projectors
Home Camera System
Home camera systems capable of detecting movement in
the home using built-in motion sensors
Management System
Software capable of managing communication of
security data received from the security camera system or
home camera system between the user’s home and the
portable terminal
3) Operation and Management of Facilities
Facilities will be operated and managed by Becamex Tokyu, as outlined in the diagram below.
Figure8-4 Diagram of Business Operation Scheme in Binh Duong New City
BECAMEX IDC
Tokyu Coporation
Joint Company
BECAMEX TOKYU
Commercial
buildings
Point
card
Office
buildings
Executing body
Residential
Security
Bus service
Other urban
facilities,
infrastructure
IC Pass
Binh Duong New City
8-3
(2) Technical, Economic and Other Advantages of Japanese Companies in
Implementation of the Project
1) Technical Advantage
We adopt PASMO and Suica transit fare smart cards for our own Tokyu Bus services. We will be able to
capitalize on this experience for introduction of transit fare smart cards to Binh Duong Province. With respect
to loyalty point cards we also have a record of results in introduction and operation since we issue and operate
our TOP& point card. This card is associated with PASMO and Suica and can also function as a transit fare
smart card. In the security business, we have a subsidiary of Tokyu Security Co., Ltd. to offer a building
monitoring system and many other security services.
Figure 8-5 TOKYU services in Japan (Image)
Source: Created by the Study team
As mentioned above, the technologies used in this project are some of those in practical application on a
commercial basis as living services that we already operate in Japan. We have an extensive track record and
abundant experience in offering similar services in Binh Duong Province.
Given that it is important to increase smart card users in the three businesses mentioned above, we are striving
to adopt the same smart card standards for Metro Line 1 to ensure interchangeability. We are exploring the
possibility of introducing Sony’s FeliCa card standard, which uses Japanese technology, to Metro Line 1.
Although its market share is high in Japan, FeliCa lags behind NXP Semiconductors based in the Netherlands,
which owns the MIFARE technology, and behind US-based Motorola in the global market. Their technologies
fall under what is known as Type A and Type B standards. However, FeliCa is superior to their technologies in
8-4
terms of response speed, storage capacity and security features. It excels particularly when it is used at
automatic ticket gates, building entry gates, cash registers, etc. where high-speed processing is required. FeliCa
is widely used in the Asia region with its high population density, and it is a technology that easily achieves the
level of lifestyles realized in Japanese cities. Adopted in Japan for PASMO and Suica transit fare smart cards
and Edy electronic money, FeliCa contributes to greater convenience in people’s lives.
We are considering integrated smart cards covering transport, electronic money and security services to achieve
the Japanese standard of living in Binh Duong Province, and FeliCa is suited to achieve it.
2) Economic Advantage
Since this project is financed by Becamex Tokyu’s own funds, it is unnecessary to study the economic
advantage. In the interests of coordination with Metro Line 1 however, one option would be to consider using
funds from the Japanese government in order to upgrade the project.
(3) Actions Requisite to Helping Japanese Companies Gain More Orders
1) Strengthening of Support in Collaboration Between Public and Private Sectors
Although these three projects will be carried out on a standalone basis, it will nonetheless be important to
proceed in collaboration between the public and private sectors.
For example, Becamex Tokyu will be launching a bus service linking Thu Dau Mot City, in the central part of
Binh Duong Province, and Binh Duong New City in 2014, and will be issuing smart cards at the same time. If
materials and equipment, including buses themselves and onboard smart card readers, and technical expertise
were to be provided through financial assistance from the Japanese government, in order to reinforce this
process, it would be possible to distribute smart cards to more bus passengers and coordinate effectively with
Metro Line 1 in the future.
2) Building of Partnerships with Local Relevant Organizations
In connection with smart card introduction to Binh Duong Province, it is vital to strengthen ties with Becamex
IDC, which takes the leadership role in development in the province. Relationships will also need to be
established with local banks, which will be responsible for issuing smart cards. It will be necessary to gather
information on an ongoing basis, making the most of the network with Binh Duong Department of Information
and Communications, with which Tokyu Corporation has already built up a good relationship through past ICT
surveys.
In addition to building relationships with associated private companies, it will also be necessary to approach the
Vietnamese government and the Binh Duong Province authorities, in an effort to build partnerships with public
institutions. This project originally intended to conduct a deeper survey on the ICT environment that we have
independently studied, but after the Japanese government adopted it, the understanding and provision of
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information from Binh Duong Province authorities were improved in terms of quality and it became easier to
build ties. Strengthening of collaborative relations between the Japanese government and the Vietnamese
counterpart or Binh Duong Province authorities and lobbying activities concerned with this project will be key
factors to implementation of the project.
8-6

Study on the ICT Application for Advanced Lifestyle Services in Binh

Transcription

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