Decree 319 paves the way for Vietnam's railway industry.

The government issued Decree 319, which for the first time set criteria for selecting Vietnamese enterprises to transfer technology for railway projects. Previously, many enterprises had already expressed their readiness to participate in high-speed railway projects, thereby increasing the localization rate.

New mechanisms for developing the railway industry.

The Government has just issued Decree 319/2025/ND-CP dated December 12, 2025, detailing the content, order, procedures, and authority for implementing special mechanisms and policies on the development of science and technology, research, application, and technology transfer for key national projects and important projects in the railway sector, in accordance with resolutions of the National Assembly.

Regarding the criteria for selecting Vietnamese organizations and enterprises to be assigned tasks or commissioned to receive technology transfer for railway projects, the decree clearly stipulates criteria related to workshops, financial capacity, personnel, commitment to mastering the technology, etc.

Accordingly, organizations and businesses must be established in accordance with Vietnamese law; have clear functions and responsibilities (for organizations) or have registered business lines and operating licenses (for businesses) that are consistent with the technology field being transferred.

The government has set out a series of criteria for selecting Vietnamese organizations and businesses to be assigned tasks or commissioned to receive technology transfer for railway projects. (Illustrative image.)

In addition, organizations and businesses must have factory facilities and infrastructure that meet the requirements for receiving and installing machinery, equipment, and technological lines. They must also have the financial capacity or ability to raise capital to cover the costs of technology transfer; and possess a team of experts, technical staff, and workers with sufficient capacity to manage, research, operate, and master the transferred technology.

Organizations and businesses must have a plan to mobilize resources to meet the requirements for technology transfer; commit to completing the transfer, mastering, and operating the technology; and have experience in international cooperation on technology transfer. At the same time, the value of the technology transfer must not exceed the budget of the railway project approved by the competent authority.

Specifically, the organization or business must not be in the process of dissolution or have its business registration certificate revoked; and must not be insolvent as defined by bankruptcy law.

The decree states that the railway project investor shall determine the specific requirements for the criteria stipulated above, ensuring they are consistent with the type of technology transferred to serve the railway project.

The opportunity arose for the development of the railway manufacturing industry.

In fact, many Vietnamese businesses have been proactively preparing their capabilities to participate more deeply in future railway projects. Several large enterprises have established cooperation with international partners to receive advanced technology transfer, aiming to localize the production of locomotives and carriages for urban and high-speed railways in Vietnam.

Simultaneously, investment plans for the construction of a railway industrial complex, including a production area, a closed-loop test track system, and a large-scale maintenance and repair center, are also being studied and implemented. The goal is not just assembly and processing, but to gradually develop complete production capabilities and master core technologies in the railway sector.

In terms of materials, domestic enterprises have invested in projects to produce rail steel and specialized steel products for high-speed and urban railways, which commenced on December 19th. When these projects become operational, Vietnam can gradually reduce its dependence on importing strategic materials, which are currently mainly purchased from abroad.

In addition, many Vietnamese businesses have expressed their willingness to participate in high-tech areas such as signaling and control, as well as infrastructure items from foundations to under-rail structures. These are important prerequisites for domestic businesses to gradually participate more fully in the railway industry value chain, instead of just playing the role of subcontractors as before.

The Government's issuance of Decree 319, with its detailed criteria for selecting Vietnamese enterprises to receive railway technology, marks a strategic turning point in Vietnam's infrastructure development thinking: a shift from importing to partial localization, ultimately leading to mastery.

Speaking with PV.VietNamNet , Ms. Nguyen Minh Thao, Deputy Head of the Enterprise Development and Business Environment Department (Institute of Economic and Financial Strategy and Policy), said that this Decree is a step in line with the trend and has special significance in creating a foundation for the development of the domestic railway industry. Previously, large-scale public investment projects often had to go through many procedural steps, while domestic enterprises faced a clear disadvantage when competing with foreign contractors. This resulted in the private sector mainly participating in the role of subcontractors or outsourcing.

With this new approach, the State is changing the way the private sector participates, creating conditions for domestic enterprises to directly participate in large-scale projects. Through this, private enterprises have the opportunity to accumulate capacity, participate more deeply in the value chain, gradually master technology, and enhance competitiveness, instead of only performing low value-added stages.

According to Ms. Thao, clearly defining the criteria in the Decree not only ensures transparency but also clearly demonstrates the State's "commissioning" orientation to form enterprises large enough and capable of undertaking key projects. Without this mechanism, domestic enterprises would find it very difficult to participate as main actors, and would only play a supporting role.

"This new approach not only promotes the development of the private economy but also concretizes resolutions on encouraging businesses to innovate technology and apply specific solutions to large-scale projects. More importantly, it opens up opportunities for domestic private enterprises to compete equally with state-owned enterprises and FDI enterprises, creating a ripple effect for the entire railway industry in the long term," Ms. Nguyen Minh Thao shared.

Minister of Construction Tran Hong Minh, acting on behalf of the Prime Minister, presented to the National Assembly a proposal to supplement mechanisms and policies applicable to the North-South high-speed railway project.

Source: https://vietnamnet.vn/nghi-dinh-319-dan-duong-cho-nganh-cong-nghiep-duong-sat-viet-nam-2472548.html