Private sector is ready to contribute to building a national railway system

Enterprises are ready

Returning from the Asia Pacific Rail 2025 Exhibition, the largest regional event in the railway sector (taking place from May 28-29 in Bangkok, Thailand), the leader of Vinh Hung Company said: "Vietnamese private enterprises are confident enough to participate in Vietnam's railway projects in the coming time".

Mr. Tran Duc Tien - Chairman of the Board of Directors of Vinh Hung Company - said: "At Asia Pacific Rail 2025, we impressed with products bearing the "Make in Vietnam" mark such as bridge bearings, expansion joints, noise-proof walls... But what we are interested in is introducing the ability to participate in railway projects in the region of Vietnamese enterprises".

Vinh Hung is one of many Vietnamese private enterprises that want to contribute to railway projects in Vietnam. However, at the present time, that contribution is not in line with the potential. For example, this company has also won a few small bid packages at the Ha Dong - Cat Linh elevated railway project in Hanoi or Ben Thanh - Suoi Tien in Ho Chi Minh City. Surprisingly, this enterprise is participating more deeply in projects abroad. For example, providing bridge bearings, station bearings, rubber bearings, formwork boards, checkpoints, and shock absorbers for the Malolos - Clark railway project (Philippines) with a total investment of 6.1 billion USD will be completed this year.

In the context of Vietnam promoting the development of transport infrastructure, especially strategic railway lines, private enterprises want to be more facilitated to access domestic markets, absorb technology, and connect internationally. Thereby, not only serving the domestic market but also bringing Vietnamese products far, contributing to positioning the national brand in the global value chain - Mr. Tran Duc Tien said.

Waiting for breakthrough decisions

The Ministry of Construction has just assigned the Project Management Boards (BQLDA) to prepare a pre-feasibility study report for 6 railway projects implemented in the period of 2025 - 2027.

The Management Board said that these 6 projects are all important national railway projects, including two new projects assigned to research and investment, including the Hanoi - Dong Dang route and the Hai Phong - Ha Long - Mong Cai route.

The remaining routes include the Hanoi - Dong Dang railway project with the starting point in Hanoi, the end point in Dong Dang (Lang Son), with a length of about 156km. The route is designed single, electrified, 1,435mm, a maximum speed of 160km/h, exploiting a mixture of passenger ships and cargo ships. The total estimated investment is about 6 billion USD. Hai Phong - Ha Long - Mong Cai route has a length of 187km, total investment is expected to 7 billion USD. The remaining 4 railway projects include: Ho Chi Minh City - Can Tho; Bien Hoa - Vung Tau; Vung Ang - Mu Giu and the eastern belt of Hanoi. In particular, it is worth noting that the Ho Chi Minh City - Can Tho Railway Project has a length of about 175km, the total preliminary investment is about 9 billion USD.

For private enterprises to participate more deeply in these projects, there needs to be new mechanisms, in accordance with the spirit of Resolution 68, Resolution 159 of the National Assembly and the direction of the Government.

According to the plan, on June 12, at the 9th session, the XV National Assembly, the Minister of Construction and authorization of the Prime Minister presented the draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies, especially to invest in developing the railway system. On June 17, this content will continue to be discussed in the hall and is expected to approve the National Assembly's resolution on piloting a number of specific mechanisms and policies, especially to invest in developing the railway system.

Many new points in the draft Resolution on piloting a number of specific mechanisms and policies, especially to invest in the development of the railway system. For the selection of contractors, investors, and investment decision-making authorities, the application of the form of bidding designation for the selection of consulting, non-consulting, goods, construction and installation contractors, EPC, EC, EP, hand-to-hand keys, and investors is decided.

Notably, organizations and individuals participating in scientific and technological activities serving the project are subject to policies such as: Deciding on limited bidding, appointing bids, placing orders to select contractors to provide services and goods; enterprises enjoying incentives such as high-tech enterprises according to the provisions of law on high technology during the implementation of scientific and technological tasks serving the project; exemption of corporate income tax, exemption of personal income tax from performing scientific and technological tasks serving the project.

In particular, in the course of implementation, the heads of agencies, units, cadres, civil servants and officials participating in the project are considered to eliminate, exempt and reduce liability in accordance with the Party's regulations and the provisions of the law in the following cases: Acts are determined by the competent authority to dare to think, dare to do, dare to take responsibility for the common interest; must obey the decisions of the superiors and have reported to the decision maker before the compliance; To implement the proposal on innovation, creativity and solutions to accelerate the implementation of the project authorized by the competent authority and in accordance with the policy of the competent authority, the motivation is clear, for the common interest.

Enterprises, especially private enterprises, expect new decisions to confidently participate in the country's billion-dollar projects.