Welcome special mechanisms and incentives for railway investment.

If approved by the National Assembly, the special mechanisms and policies, particularly regarding railway infrastructure investment, will create a rapid impetus in the implementation of major national and urban railway projects with a total capital of over 5.5 trillion VND.

Ho Chi Minh City's Metro Line 1, connecting Ben Thanh and Suoi Tien, has been operational since the end of 2024. Photo: Duc Thanh

"Contracting out 10" railway projects

"We are urgently receiving and responding to the Ministry of Justice 's assessment of the draft Resolution of the National Assembly on piloting some specific and special mechanisms and policies for investment and development of the railway system so that we can submit it to the Government this week," a leader of the Ministry of Construction said.

Currently, the process of finalizing the draft Resolution, considered a "contract-based" approach in the field of railway infrastructure development – ​​a mode of transport that plays a key role in socio-economic development, regional connectivity, and promoting international integration – is nearing its end.

In Official Letter No. 3034/BXD-PC sent to relevant agencies and units in the middle of this week, the Ministry of Construction requested the Legal Department to explain and clarify the inherited content; and the content that has been amended and supplemented compared to the mechanisms and policies in the resolutions on railways passed by the National Assembly. The Planning and Finance Department was assigned to review policies on mobilizing and allocating investment capital; and to coordinate with the Vietnam Railway Authority to research and develop policies on mobilizing investment from the private sector and investment through public-private partnerships (PPP).

Specifically, the Vietnam Railway Authority is tasked with researching the institutionalization of Resolution No. 68-NQ/TW of the Politburo on the development of the private economy to build policies for mobilizing investment from the private sector and investing through the PPP method for railway projects; and reviewing and clarifying the compatibility of policies on industrial development and technology transfer in the Draft Resolution with international treaties to which Vietnam is a signatory.

Previously, at the end of April 2025, the Ministry of Construction sent a letter to the Ministry of Justice requesting the Ministry to appraise the Draft Resolution of the National Assembly on piloting a number of specific and special mechanisms and policies for investment and development of the railway system according to the simplified procedures stipulated in Articles 50 and 51 of the Law on Promulgation of Legal Documents (2025).

According to Mr. Nguyen Danh Huy, Deputy Minister of Construction, the practical experience of investing in and constructing national and urban railway projects in recent years shows that there are still many difficulties and obstacles, focusing on key issues such as: mobilizing resources; investment procedures; implementing planning; land clearance; human resource training, technology transfer, and railway industry development…

In order to fundamentally resolve the aforementioned difficulties and obstacles, the Government has submitted and the National Assembly has issued two resolutions on the investment policy for high-speed railways on the North-South axis and the Lao Cai - Hanoi - Hai Phong railway; and a resolution on piloting some specific and special mechanisms and policies to develop the urban railway network system in Hanoi and Ho Chi Minh City.

In addition, to accelerate the implementation of planned railway projects (Hanoi - Dong Dang, Hai Phong - Ha Long - Mong Cai, Ho Chi Minh City - Can Tho, Bien Hoa - Vung Tau, Thu Thiem - Long Thanh, Suoi Tien - Thu Dau Mot, etc.), it is necessary to have specific, special, and superior mechanisms and policies similar to those already approved by the National Assembly for railway projects.

Recently, the Ministry of Construction was assigned the task of researching and developing a plan on special mechanisms and policies for investing in the construction of two railway lines: Hanoi - Dong Dang and Hai Phong - Ha Long - Mong Cai.

The investment in constructing new railway lines is considered difficult by competent authorities; some projects are identified as unprecedented, and the Government has been tasked with continuing to propose adjustments and additions to specific and special mechanisms and policies.

In practice, the implementation of these projects over the past period has revealed a number of issues that require further refinement of these mechanisms and policies in order to achieve the required goals and timelines.

"Based on the aforementioned political, legal, and practical foundations, the development and promulgation of specific and special mechanisms and policies applicable to the investment and construction of railway projects is essential and urgent to remove institutional bottlenecks and realize the goal of completing the national railway network and urban railways according to the plan," a leader of the Ministry of Construction stated.

Special mechanisms for mobilizing resources

According to calculations by the Ministry of Construction, the estimated cost for implementing the National Assembly's Resolution on piloting a number of special mechanisms and policies for investing in the development of the railway system is 5,504,893 billion VND. Of this amount, approximately 2,257,041 billion VND is allocated for investment and implementation of national railway projects; and approximately 3,247,852 billion VND is allocated for investment and implementation of urban railway projects in Hanoi and Ho Chi Minh City.

This is also the reason why the agency in charge of drafting the Resolution paid special attention to mobilizing resources and allocating capital.

Specifically, the draft resolution stipulates that the Prime Minister shall decide on the use of diverse sources of capital such as issuing government bonds, official development assistance, preferential foreign loans, and increased revenue and expenditure savings… for investment in railway development projects.

The draft also stipulates the development and exploitation of land resources and the added value from land in the vicinity of national railway stations, and the development of transport-oriented urban areas (TOD) for urban railways to generate additional investment capital for railway development.

At the same time, the Draft also includes provisions to simplify procedures when using preferential foreign loans, and procedures related to adjusting planning when developing urban areas according to the TOD model. In areas developing urban areas according to the TOD model, provincial People's Committees are allowed to decide on technical indicators and land use indicators to optimize land use efficiency.

Regarding the development and exploitation of land resources and the added value from land in the vicinity of national railway stations, provincial People's Committees will be authorized to decide on economic-technical indicators and land use planning indicators that differ from those stipulated in the national technical standards on urban and rural planning, but must ensure that technical and social infrastructure systems are met; and may adjust the land use functions of areas in the vicinity of railway stations to exploit land resources and the added value from the land.

Regarding the revenue generated from land exploitation in the vicinity of railway stations, after deducting related costs as stipulated by law, the provincial-level locality is allowed to retain 50% and remit 50% to the central budget to balance the state budget for investment in the project.

Regarding industrial development and technology transfer, the Draft Resolution proposes allowing the Government to regulate the assignment of tasks, orders, and selection criteria for organizations and enterprises assigned tasks and orders to provide railway industrial services and goods; and to research, apply, and receive technology transfers.

General contractors and subcontractors must prioritize the use of products, goods, and services that can be produced and supplied domestically. For international bidding packages, general contractors and subcontractors must commit to transferring technology and training human resources for Vietnamese partners to master management, operation, and maintenance.

Regarding the potential participation of construction companies in railway infrastructure projects, including the North-South High-Speed ​​Railway Project, Mr. Nguyen Quang Huy, General Director of Deo Ca Infrastructure Investment Joint Stock Company, believes that, with their current capabilities, some large domestic contractors can undertake the infrastructure construction as independent contractors or as main contractors in a consortium with foreign companies.

It is known that recently, some domestic contractors have organized study tours to learn about the practical training process for railway and metro engineering in advanced countries such as France, the United States, China, and Japan... with the aim of "importing" programs and experts.

"Despite the high demands regarding geometric factors, curve radii, and accuracy, Deo Ca Infrastructure Investment Joint Stock Company believes that domestic contractors will be able to successfully undertake the construction of bridges and tunnels for the high-speed railway and urban railway lines," Mr. Nguyen Quang Huy affirmed.

Source: https://baodautu.vn/don-co-che-dac-thu-dac-biet-cho-dau-tu-duong-sat-d280534.html