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Proposal for localities to keep 50% of revenue from land exploitation along national railway lines

The government proposed allowing localities to retain 50% of revenue from exploiting land along the national railway after deducting costs, with the remainder paid to the central budget.

Báo Hải DươngBáo Hải Dương16/06/2025

The State creates conditions for businesses to participate in railway investment.
Minister of Construction Tran Hong Minh presented the draft Law on Railways, morning of June 16.

On the morning of June 16, presenting the draft Law on Railways (amended) to the National Assembly , Minister of Construction Tran Hong Minh said that with local railways, provinces and cities are allowed to retain 100% of revenue from land exploitation in areas developed according to the public transport orientation (TOD).

The bill also proposes to empower provincial People’s Committees to organize the establishment, appraisal, approval, and adjustment of urban development area planning along national railway lines. For local railways, provincial authorities are authorized to approve route plans, project locations, master plans, and TOD area planning to determine the area and boundaries of land to be recovered.

The National Assembly's Committee on Science , Technology and Environment agreed with the urban development orientation with public transport as the center. However, the examining agency proposed clarifying the limits of local authority when adjusting the planning, and adding regulations on independent and transparent monitoring mechanisms.

Many incentive mechanisms to attract investment in railways

The Government also proposed a series of incentive and preferential mechanisms to develop railways and the railway industry. The State will create conditions for domestic and foreign enterprises to invest in projects connecting railways with other forms of transport; developing supporting industries; researching and transferring technology; training and developing human resources for the railway industry.

The state budget will prioritize capital allocation for the development, upgrading, and maintenance of national and local railway infrastructure and investment in the railway industry. Localities with railway lines passing through will also have their resources mobilized to the maximum to participate in compensation, resettlement support, and investment in some project items.

Railway infrastructure business and human resource training in this sector will be classified as an investment incentive industry. Organizations and enterprises operating in this sector will be exempted or have their land use fees and land rents reduced; will be able to borrow investment credit from the State or receive a Government guarantee when borrowing capital; and will receive partial support for investment capital from the State budget or preferential credit capital, especially when deployed in difficult areas.

In addition, enterprises investing in and developing railway industry and railway infrastructure will also receive corporate income tax incentives. Domestic organizations and individuals participating in railway projects will be exempted from import tax on machinery, equipment, spare parts, railway vehicles, specialized materials... if they cannot be produced domestically or do not meet the project's standard requirements.

The Committee on Science, Technology and Environment said it "basically agrees" with the preferential policies and specific mechanisms in the draft law, provided that these proposals have sufficient political basis.

HA (according to Vietnamnet)

Source: https://baohaiduong.vn/de-xuat-dia-phuong-giu-50-nguon-thu-tu-khai-thac-quy-dat-doc-tuyen-duong-sat-quoc-gia-414191.html


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