Proposal to invest 17,509 billion VND to build a railway industrial complex in Hanoi

Illustration photo.

Vietnam Railway Corporation has just submitted a document to the Ministry of Construction regarding the allocation of investment funds for the Project "Construction of Railway Industrial Complex".

In order to promptly provide industrial products for new railway construction projects, urban railways, existing railways and high-speed railways, Vietnam Railways Corporation proposed that the Ministry of Construction report to the Prime Minister to assign Vietnam Railways Corporation - a 100% state-owned enterprise as the managing unit to implement the investment project "Construction of Railway Industrial Complex" with 100% capital in the form of public investment.

Vietnam Railways Corporation also requested competent authorities to arrange funding sources to carry out preparation steps and implement the Project in accordance with the provisions of law.

It is known that the Railway Industrial Complex aims to assemble domestically and gradually localize vehicles for national railways and urban railways; domestically produce and gradually localize hardware and software components for information, signals and power supply systems; master all operations and maintenance work and gradually produce some components and spare parts for high-speed railways.

The railway industrial complex is the place to receive technology transfer, invest in machinery and equipment and produce locomotives and carriages for national railways with speeds of less than 200 km/h, and purchase designs and manufacture 8 for urban railways; build functional subdivisions to carry out major repairs for all railway equipment.

According to the proposal, the investment project "Construction of Railway Industrial Complex" has an area of about 250 hectares; the implementation location is located in the area of 2 communes Chuyen My and Ung Hoa in Hanoi City.

Vietnam Railways Corporation will implement the Project in the direction of building and operating the Railway Industrial Complex with public investment capital; coordinate with domestic and foreign enterprises to build a railway industrial ecosystem and product supply chain for the Railway Industrial Complex.

The preliminary total investment of the Project is 17,509 billion VND; of which phase I is 7,411 billion VND; phase II is 10,098 billion VND.

If approved by competent authorities, Vietnam Railways Corporation plans to implement the Project within 3 years, specifically investment preparation and legal procedures: 9-12 months; technical design - construction permit - bidding: 6-9 months; construction of technical infrastructure (Phase 1): 18 months; installation of machinery and equipment: 8 months; completion and operation: 3 months.

The Project is estimated to generate expected revenue from 2030 to 2050 of VND 228,102 billion; the payback period is approximately 16 years.

“When formed, the complex will create a railway industrial ecosystem, a product supply chain for new railway projects, urban roads, existing railways, high-speed railways; creating a driving force to lead the domestic railway industry to develop rapidly and sustainably, promoting the development of supporting industries and materials industries to meet increasing demand,” said Mr. Hoang Gia Khanh - General Director of Vietnam Railways Corporation.

Source: https://baodautu.vn/de-xuat-dau-tu-17509-ty-dong-xay-dung-to-hop-cong-nghiep-duong-sat-tai-ha-noi-d358908.html