Launch pad for private railway construction

Illustration using AI technology - Made by: TAN DAT

According to experts, if assigned the right role, private corporations and enterprises can completely create miracles in the railway sector similar to what they have done in urban development, automobiles, energy...

Choose a business with enough potential and hand over the entire project

The open spirit of assigning the private sector to implement major projects, including the North-South high-speed railway, was emphasized by Prime Minister Pham Minh Chinh at a discussion with the business community on May 31, aiming to effectively implement Resolution 68 of the Politburo on private economic development.

The Prime Minister emphasized that it is necessary to clearly separate the conditions and standards of investors and the conditions and standards of contractors.

Investors only need financial potential to invest in any field that is effective and profitable, so no experience is required.

"It is possible to stipulate that casino investors must have 2 billion USD to invest in casinos in Vietnam, but do not require them to have experience in this field. Because they can organize their business, hire experienced contractors, and hire someone to manage it is their business. This is the administrative procedure bottleneck that needs to be resolved," the Prime Minister stated.

Associate Professor Dr. Tran Dinh Thien, member of the Prime Minister's Policy Advisory Council, said the Prime Minister has made a very clear point of view on how to implement a large project, a modern project, different from before. For a long time, project contracts have not made a clear distinction, just stating in the contract the required number of years of experience... leading to difficulties in implementation, sometimes one job requires many contractors.

"We have to change our approach. For large projects, we will have to organize by assigning a business as the investor throughout. The assigned investor must have financial capacity and proven, trustworthy management capacity. The investor's task is to gather good contractors and consultants and execute the project in the best way," said Associate Professor, Dr. Tran Dinh Thien.

We must change our approach. For large projects such as the North-South railway, we must assign a business to be the overall investor. The investor must have proven and trustworthy financial and management capacity. The investor is responsible for assembling good contractors and consultants and implementing the project in the best possible way.

Assoc.Prof.Dr.Tran Dinh Thien

Now you can "choose the right person to trust"

According to experts, Resolution 68 of the Politburo, Resolution 198 of the National Assembly and the Government's Action Program all clearly demonstrate a consistent viewpoint: placing trust in the private economic sector. This has opened up a new space for private enterprises to participate in key areas, including high-speed railways.

The registration for the North-South high-speed railway shows one thing very clearly: when opportunities open up, domestic enterprises immediately demonstrate their proactive spirit and ability to respond.

This is a positive signal because it both creates healthy competition and proves that there are capable businesses ready to take on the role of large-scale projects when the country needs them.

Associate Professor, Dr. Tran Dinh Thien said that many private enterprises have made strong breakthroughs, showing the ability to succeed in many aspects: finance, management and technology; from automobile manufacturing, high technology, to tunneling through mountains, reclaiming land, building smart cities... In particular, they are not only contractors, but enterprises also take on the role of investors - managing and leading the entire project.

"We must place trust, give opportunities and create strong conditions for domestic enterprises to gradually form corporations that are competitive globally. This is not just about implementing a few large projects, but also about changing management thinking, moving to a new development model in which the State plays a role in creating, supervising and ensuring the necessary conditions for all resources to be used most effectively," said Associate Professor, Dr. Tran Dinh Thien.

Mr. Thien also noted that giving trust does not mean "outsourcing" or allowing cronyism to dominate. The selection of enterprises must be based on the principle of transparency, real capacity and project efficiency as the ultimate goal. It must ensure that the best people are selected, with sufficient management capacity and responsibility to complete the task.

People have gradually become accustomed to using the Ben Thanh - Suoi Tien metro line - Photo: QUANG DINH

Private investment: "a matter of survival"

Front page of Tuoi Tre daily newspaper on June 7

Associate Professor, Dr. Bui Tat Thang (former director of the Institute of Development Strategy - Ministry of Planning and Investment, chairman of the Vietnam - ASEAN Economic Cooperation Development Association) said that the drastic instructions, strategic and correct orientations in the current period aim to remove difficulties and barriers, creating motivation to promote the development of the private sector to become the pillar of the economy.

Mr. Thang also recalled that when Governor General Paul Doumer visited Indochina, he was followed by a number of private enterprises. They were the ones who created the large-scale railway and road system in Indochina. Historically, Europe developed thanks to the joint-stock system, not the state budget. That shows that the private sector can absolutely play a pioneering role in building transport infrastructure, if there is a suitable mechanism.

Private sector participation is essential to ending the lack of competition that persists in some sectors to this day. However, it is important to select the right investors and ensure that they deliver on their commitments.

"To do so, it is necessary to establish contractual mechanisms according to international standards between the State and private enterprises. If this time we choose a capable private investor and successfully implement the railway project, this will be a major breakthrough, not only in practice but also in terms of awareness. Personally, I expect and look forward to the success of this breakthrough," Mr. Thang affirmed.

According to Dr. Pham Viet Thuan - Director of the Ho Chi Minh City Institute of Natural Resources and Environment Economics, new policy mechanisms are being built and completed, paving the way for the development of high-speed railways and urban railways in Vietnam. In particular, attracting private investment in key national projects according to Resolution 68 is considered a vital policy in the period of deep economic integration.

The number of national railway projects and urban railway lines requires a huge amount of capital, so mobilizing private resources to participate is inevitable to reduce the burden on the state budget.

The Politburo’s Resolution also affirmed the important role of private enterprises in accompanying the State in developing urban railways, and that only private participation can solve key national projects. This is an open, strategic mindset for Vietnam’s economic development in the 2025-2035 period.

"With private investment, the State only needs to focus on managing policies and progress, without directly constructing or operating. We must boldly assign the private sector to do things quickly and early, without hesitation or worry. If we hesitate, projects will continue to be behind schedule and the dream of a modern transport network will remain far away," Mr. Thuan emphasized.

Resolution 68: Private sector to carry out important national projects

Resolution 68 of the Politburo on private economic development clearly states the tasks and solutions to form and rapidly develop large and medium-sized enterprises and private economic groups of regional and global stature.

In particular, it is required to expand the participation of private enterprises in important national projects; the State proactively has policies for ordering, limited bidding or designated bidding or has preferential policies to encourage the private economic sector to participate with the State in strategic fields, key and important national scientific research projects and tasks (such as high-speed railways, urban railways, spearhead industries, energy infrastructure, digital infrastructure, green transportation, defense and security industry, etc.), urgent and pressing tasks.

There are solutions to promote private enterprises to invest in expanding and developing the provision of high-quality healthcare and education services, and developing cultural and entertainment industries.

* National Assembly Delegate PHAM VAN HOA (Dong Thap):

The auto industry is a case in point.

Prime Minister Pham Minh Chinh's policy that investors with sufficient financial resources and profits can invest in all fields is very suitable to open the door for corporations and private enterprises with sufficient capacity to participate in investing in the construction of key projects, including the North-South high-speed railway project.

Instead of focusing too much on the factor of "railway construction experience", we should focus on the decisive criteria: financial potential, project management capacity, ability to mobilize domestic and foreign resources and commitment to timely and quality implementation.

In fact, there are business groups with economic potential and high determination that have successfully implemented projects and tasks that no one else in the country has done and has done successfully. This is a typical proof of the Prime Minister's statement. Because when there is economic potential and good management capacity, investors will choose good contractors to implement the project.

A typical example of this is the automotive industry that Vingroup has implemented with the VinFast car brand. From having never produced a car, VinFast cars have now dominated the domestic market, pioneered the transition to electric cars with advanced technology and exported to many countries.

This reality shows that if there are policies to encourage transparency and equality, it is completely possible to feel secure in letting the private sector play a larger role in key national projects. This is the time when the State needs to trust in the internal strength of Vietnamese enterprises, while promoting the effectiveness of public-private partnerships for the goal of sustainable national development.

Many countries invite private sector to build infrastructure

In the context of limited public budgets while the need for infrastructure development is increasing, many countries are proactively encouraging the private sector to participate in investing in key projects - especially in the railway and transport sectors.

Instead of just stopping at a general call, governments of many countries are gradually adjusting legal policies, financial mechanisms and risk allocation to create more favorable conditions for private enterprises to participate.

* In the United States: The Brightline rail line in Florida is a notable example of the ability to mobilize private resources. Although it is fully privately owned and operated, the Brightline high-speed rail line is mainly notable for its flexible investment approach, such as reusing existing infrastructure, while exploiting financial instruments such as tax-free bonds to reduce capital costs and shorten implementation time.

According to City Journal on January 29, although the project has not achieved short-term financial efficiency, its rapid implementation and continuous expansion show the growing role of the private sector in complex infrastructure projects. Instead of relying solely on the public budget, this model shows the ability to effectively supplement social resources to develop key transport infrastructure.

* In China: The first private high-speed railway named Hang-Shao-Dai connecting three cities in Zhejiang province, Hangzhou-Shaoxing-Daizhou, with Fuxing Group playing the leading role in terms of investment capital (51%) is an institutional turning point.

China.com reported that the Zhejiang government has issued a policy to support the project as a public project, with a private enterprise responsible for investing, operating and bearing the financial risks of the route.

As a result, after more than 1,400 days of construction through complex terrain, the route went into operation on schedule, serving nearly 40 million passengers in the first two years and contributing significantly to the region's GDP.

* In India: The government is testing the mixed installment payment model (HAM) to attract private investment in the Mumbai - Ahmedabad high-speed rail project, which is over 500km long.

With support from international businesses and modern signaling technology, India is not only aiming for traffic growth but also aiming for urban development, emission reduction and improving the lives of surrounding areas - Metro Rail Daily reported on May 12.

International experience shows that attracting the private sector to invest in key transport projects is a consistent orientation of many countries to effectively mobilize social resources for infrastructure development.

In addition to calling for capital contributions, countries also perfect the legal framework, stabilize support mechanisms and ensure reasonable risk allocation, creating conditions for private enterprises to confidently invest long-term and make substantial contributions to the goal of national infrastructure development.

DUC PHU - TIEN LONG - LIEN AN

Tuoitre.vn

Source: https://tuoitre.vn/be-phong-de-tu-nhan-lam-duong-sat-20250607082241141.htm