Choosing high-speed railway investors: Open, no secrets

The group with 70 employees also wants to be invested.

On November 27, at the Government Headquarters, Deputy Prime Minister Nguyen Hoa Binh chaired a meeting with leaders of ministries, branches and enterprises on the high-speed railway project on the North-South axis.

Deputy Prime Minister Nguyen Hoa Binh said that the North-South high-speed railway has three investment methods: public investment, public-private partnership (PPP) investment and private investment. According to Mr. Binh, the requirement is to choose the optimal investment form that is most beneficial for the country.

Deputy Prime Minister Nguyen Hoa Binh speaks at the meeting. Photo: VGP.

The Deputy Prime Minister emphasized that the review must be fair, objective, transparent, public, "without any hidden agenda" and the exchange must be frank and open. At the same time, he welcomed and appreciated the goodwill of businesses that want to contribute to the country's development in the new era.

There are businesses at this meeting that work very seriously, their reports are very carefully prepared, but there are also businesses whose reports are sketchy, their ideas are not clear; there are businesses with only 70 employees, total capital of about 2,000-3,000 billion VND, which cannot meet the requirements of the project," said Deputy Prime Minister Nguyen Hoa Binh.

Mr. Nguyen Nam Thieu - Chairman of the Board of Directors of Discovery Group Joint Stock Company - expressed his goodwill and desire to cooperate in investing in the project according to the capital recovery business plan. When asked about the scale of human resources, investment capital and project implementation capacity, Mr. Thieu said that the Group currently has about 70 employees and a total capital of about 2,000 - 3,000 billion VND.

Mr. Nguyen Hoang Tue - Deputy General Director of Truong Hai Group Joint Stock Company - expressed his goodwill to participate in the project in the form of investment and business (according to the Investment Law). Regarding capital, the investor will be responsible for 20% of the investment capital, 80% will be mobilized and borrowed; in addition to its own capital and financial resources, Truong Hai Group will establish companies to mobilize investment capital from domestic and international enterprises and corporations to implement the project.

Mr. Nguyen Hoang Tue affirmed strong commitments to ensuring personnel work, progress, project quality, and disbursement on schedule; ensuring items must be transferred to the state for management on schedule; ensuring issues of quality, technology, etc.

Urgently propose investment methods

Representatives of Vinspeed High-Speed Railway Investment and Development Joint Stock Company wish to invest in the project in the form of business investment, with a total estimated investment of over 61 billion USD (excluding site clearance costs), with a project construction period of 5 years.

Deputy Prime Minister chaired the meeting on November 27. Photo: VGP.

Proposing to borrow 80% of the project investment capital and repay within 30 years, Vinspeed affirmed its commitments: Strictly comply with legal regulations, especially procedures and regulations in borrowing capital; ensure investment in modern technology and equipment, strengthen cooperation with partners in increasing the localization rate of the railway industry...

Based on the available documents and information provided by enterprises, the Deputy Prime Minister requested the Ministry of Construction to preside over and coordinate with the Ministry of Finance, the State Bank of Vietnam and relevant agencies to urgently complete the report proposing investment methods and accompanying policy mechanisms, and submit it to the Government for consideration and comments. According to the Deputy Prime Minister, this will be an important basis for the Government to discuss and evaluate before reporting to competent authorities for consideration and decision.

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