Proposed high-speed railway project has no specific mechanism

In Official Dispatch No. 01/2025/VSP dated May 6, Vinspeed Company proposed that the investment capital for the high-speed railway project on the North-South axis be self-arranged capital of 20% of the total investment from its own resources and other legally mobilized sources, and 80% of the total investment be borrowed from the State.

According to the State Bank, Article 136 of the Law on Credit Institutions 2024 stipulates the credit limit, the total outstanding credit balance of a credit institution for a customer, a customer and a related person of that customer. The State Bank has conducted a review and found that in the case of borrowing capital from domestic credit institutions, Vinspeed is identified as a related person of Vingroup Corporation.

Vinspeed is responsible for arranging 20% ​​of the project's total investment capital of about 12.27 billion USD. Photo: VGP.

Accordingly, the total outstanding credit balance of Vingroup Corporation and related parties (including outstanding credit balance for Vinspeed projects) at credit institutions must comply with the above regulations.

According to Official Dispatch No. 01/2025/VSP, there is not enough information for the State Bank to review and evaluate the proposed policy of the total outstanding loan balance of the project not being included in the total outstanding loan balance of Vingroup Corporation according to the provisions of the Law on Credit Institutions as stated by the Ministry of Finance .

In case the implementation of the high-speed railway project on the North-South axis requires special mechanisms and policies different from current legal regulations, the competent authority must consider and decide to issue a mechanism for implementation.

Previously, the Government Office issued a notice of the conclusion of Deputy Prime Minister Tran Hong Ha at a meeting on the investment proposal for the high-speed railway project on the North-South axis of Vinspeed High-Speed ​​Railway Investment and Development Joint Stock Company.

Accordingly, for the specific proposal of the high-speed railway project on the North-South axis, the Ministry of Construction shall preside over the synthesis based on the proposals and comments of ministries and agencies including Finance, Agriculture & Environment, Justice, State Bank of Vietnam; report to the Government Standing Committee, the Government Party Committee Standing Committee for consideration before submitting to competent authorities for consideration of the policy of converting the investment form, the policy mechanisms, and specific characteristics applied specifically to implement the project.

The State Bank of Vietnam is responsible for reviewing, evaluating and providing comments on the policy of the total outstanding loan balance of the project not being included in the total outstanding loans of Vingroup Corporation according to the provisions of the Law on Credit Institutions.

The Deputy Prime Minister requested Vinspeed to properly implement its commitments on the proposed contents; research and have a plan to build a railway industrial system, playing a leading role in developing the railway industrial chain in case it is decided by competent authorities.

According to Vinspeed's proposal, this company will invest in the North-South high-speed railway project, with an investment capital of about VND1,562 trillion (equivalent to about USD61.35 billion), excluding compensation costs, relocation support, and resettlement for site clearance.

Vinspeed is responsible for arranging 20% ​​of the total investment capital of the project, equivalent to VND312,330 billion (about USD12.27 billion). For the remaining 80% (excluding compensation costs, relocation support, and resettlement for site clearance), Vinspeed proposes to borrow state capital without interest within 35 years from the date of disbursement.

Ngoc Mai

Source: https://tienphong.vn/du-an-duong-sat-toc-do-cao-khong-de-xuat-co-che-dac-thu-post1744541.tpo