Maximizing resources for the Railway thanks to new policy boost

VTV.vn - The 2025 Railway Law with many breakthrough mechanisms opens the way to attract private investment, creating a boost to help the railway industry accelerate, becoming a pillar of modern transport infrastructure.

Unblocking capital sources, promoting public-private cooperation

A representative of the Vietnam Railway Authority said that the agency is coordinating with relevant units to develop documents guiding the implementation of the 2025 Railway Law, including a detailed decree and circulars on management, exploitation of transport, infrastructure, and technical standards.

The document guiding the implementation of the 2025 Railway Law is under construction.

"The 2025 Railway Law was issued to replace the 2017 Law with many breakthrough mechanisms and policies, creating a favorable legal corridor to mobilize resources, shorten investment procedures, increase transparency, promote the application of science and technology, technology transfer and human resource training. In particular, the Law clearly demonstrates the viewpoint that the state budget plays a leading role, prioritizing the allocation of resources for railway development; at the same time, encouraging economic sectors to participate in investment, business and development of the railway industry," said a representative of the Railway Department.

The Ministry of Transport is directing the development and completion of sub-law documents to synchronize the effect with the Railway Law 2025 from January 1, 2026.

According to the representative of the Railway Department, Article 5 of the Law clearly stipulates the State's preferential policies: prioritizing budget allocation for development, upgrading, and maintenance of national and local railway infrastructure; developing the railway industry, and training human resources to ensure that railway transport plays a leading role in the national transport system.

The law also allows for maximum mobilization of non-state resources, development and exploitation of land funds in the vicinity of stations to create additional investment capital, and allows localities to decide on technical indicators and land use in the transport-oriented development (TOD) area.

The State encourages organizations and individuals to invest in railway projects with non-budgetary capital, with incentives such as the State covering all compensation, support, and resettlement costs; shortening investment procedures; encouraging scientific research, technology application, and human resource training.

Paving the way for railways to accelerate

The Railway Law 2025 has institutionalized the Party's resolutions on private economic development and strategic infrastructure, especially Resolution 68, expanding opportunities for investors to participate in this field.

The new regulations of the Railway Law 2025 open up opportunities to mobilize maximum resources, especially from the private economic sector, to participate in investment in developing the railway system.

The law specifically regulates investment in railway projects using non-state capital, encouraging public-private partnerships (PPP) or direct investment. The State guarantees compensation and resettlement costs, and this amount is not included in the State capital portion when implementing PPP projects.

In addition, organizations and individuals doing railway business also enjoy incentives such as exemption or reduction of land use fees and land rent; borrowing investment credit capital from the State; receiving government guarantees on loans; and subsidizing public passenger transport by urban railway.

"With the provisions of the 2025 Railway Law, investors can fully participate in investing in the construction of national, local or specialized railway systems in accordance with approved planning," emphasized a representative of the Railway Department.

"Stimulus" to attract private investment

Mr. Hoang Van Trieu, an expert from the Railway Technology Research and Development Institute (TRDI), commented: "The Railway Law 2025 and policies to mobilize non-state resources have become a strong push, attracting private enterprises to invest in developing railway infrastructure."

Less than half a year after its promulgation, many large corporations have proactively proposed to invest in national, urban, and inter-regional railway lines. Notable are VinSpeech, Thaco, and the Mekolor - Great USA Alliance with the North-South high-speed railway project.

VinSpeech proposed the Ho Chi Minh City - Can Gio route with a speed of 350 km/h; Vingroup proposed the Hanoi - Quang Ninh route; Thaco studied the Thu Thiem - Long Thanh route; Becamex proposed the Ho Chi Minh City - Can Tho and Bau Bang - Cai Mep routes; most recently, CT Group wants to invest in the Ho Chi Minh City - Can Tho - Ca Mau route. All are aiming for an electrified, high-speed, modern-technology railway model.

According to Mr. Trieu, the national railway planning until 2050 is expected to have 18 new lines with a total length of more than 3,900 km. In addition, localities are also building large-scale urban railway networks:

• Hanoi has 14 main routes and extended routes;
• Ho Chi Minh City has 12 main routes;
• Da Nang develops 2 MRT lines and 11 LRT and Tramway lines;
• Can Tho has 3 MRT and Tramway lines in the city.
  

"These networks open up a large market for businesses to invest in infrastructure, vehicles, transportation, equipment manufacturing, and the railway industry. The State needs to soon concretize policies in detailed documents so that they can be implemented in practice, thereby attracting investment and turning policies into actions," Mr. Trieu emphasized.

Source: https://vtv.vn/toi-da-nguon-luc-cho-duong-sat-nho-cu-hich-chinh-sach-moi-10025101710295865.htm