Diversify and maximize resource mobilization
The 2017 Railway Law was passed by the 14th National Assembly on June 16, 2017, and took effect from July 1, 2018. This is the highest legal document regulating all railway transport activities from planning to investment, construction, business, and ensuring railway traffic safety.
Looking back on the journey of half a decade of implementing this Law, Deputy Minister of Transport Nguyen Danh Huy affirmed that the 2017 Railway Law has created an important legal framework for the management, investment, exploitation of infrastructure and railway transport business in the direction of clearly distinguishing between state management and business, encouraging economic sectors to participate in investing in developing infrastructure and railway transport business, ensuring healthy and equal competition among economic sectors, etc.
Deputy Minister of Transport Nguyen Danh Huy also frankly stated that after 5 years of implementation, the law shows that there are still some inappropriate contents, the implementation has encountered many difficulties and obstacles, and has not met development requirements, especially regulations on urban railways and high-speed railways; there is no breakthrough policy mechanism to mobilize resources suitable for a highly specialized sector such as railways; there are still shortcomings in the management, exploitation, maintenance and business of railway infrastructure; it is necessary to strengthen decentralization and delegation of authority in railway management and investment, etc.
“This is also one of the reasons why the market share of railway transport is decreasing, preferential policies for railway development are almost not implemented; non-budgetary capital sources cannot be mobilized for railway development investment; railway industry and human resources are underdeveloped, application of science and technology is limited, management, operation and management models are still backward,” said Deputy Minister Nguyen Danh Huy.
Regarding opinions on shortcomings and problems in this Law, Minister of Transport Nguyen Van Thang said that to study and consider the proposal to amend the 2017 Railway Law, it is necessary to base on 5 issues.
First of all, the amendment of the 2017 Railway Law must be consistent with the Constitution and the Party and State's policies on railway development. In particular, it must closely follow Conclusion No. 49 of the Politburo. Next, the amendment of the law must ensure compatibility with international treaties on railways to which Vietnam is a member.
Along with that, it is necessary to inherit the advantages of the 2017 Railway Law; supplement and replace inappropriate contents; strengthen decentralization and delegation of authority in railway operations; selectively absorb railway development experiences of countries around the world suitable to Vietnam's conditions.
In particular, Minister of Transport Nguyen Van Thang emphasized that the amendment and supplement must be done in order to diversify resources, mobilize maximum resources from land funds in investment in developing railway infrastructure, industry, and railway transport exploitation; the state budget plays a leading role; promote the attraction of economic sectors to participate in railway investment and business. At the same time, it is necessary to apply modern science and technology, especially the achievements of the 4th industrial revolution in the construction, management, and exploitation of railway infrastructure to limit environmental pollution and save energy.
After 5 years of implementation, what direction should be corrected?
Regarding the direction of research to amend and supplement a number of provisions of the 2017 Railway Law, Minister of Transport Nguyen Van Thang said that the railway development policy needs to supplement a number of provisions on policies, incentives, and support for the development of railway infrastructure, railway transport, and railway industry.
Regarding railway infrastructure, the urban development model is oriented towards transport connectivity (TOD); decentralization of State management tasks on investment in construction, management, maintenance, and exploitation of national and regional railway infrastructure, etc.
Regarding industry and railway vehicles, it is necessary to study and amend regulations and policies on supporting capital for investment in infrastructure, technological innovation, and development of railway mechanical products; develop an ordering mechanism for a number of large-scale domestic corporations and enterprises with sufficient capacity to perform strategic tasks, leading the industrialization and modernization process; localize, joint venture, and association between domestic enterprises and foreign enterprises when investing in railway development.
For urban railways, it is necessary to supplement regulations on management of urban railway infrastructure assets; decentralize authority to provincial People's Committees to manage urban railway safety, assess and certify system safety; supplement specific mechanisms and policies on training and developing human resources to serve urban railway development.
In addition, high-speed railways need to supplement specific regulations on investment, construction, management, maintenance, operation, exploitation, etc. At the same time, regulations on coordination processes in planning, construction standards; policy mechanisms to ensure financial resources and attract and encourage entities to participate in investment, construction, and business development in this field.
Recently, Minister Nguyen Van Thang has directed the agencies and units of the Ministry of Transport to maximally absorb and explain the comments of ministries, branches, localities, organizations, experts, as well as the comments of organizations and individuals on the media and press to complete the draft Summary Report of the Railway Law, as a basis for making a proposal to develop the Railway Law (amended) to submit to competent authorities according to the provisions of the Law on Promulgation of Legal Documents.
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