Brian Jeffrey
Decentralization and Infrastructure Development
Local authorities should have more autonomy in managing resources, enabling them to fund essential projects. A crucial aspect of urban connectivity lies in effectively linking urban railways with high-speed rail networks.
Funding Structure Changes
Initially, the government planned to execute the railway project as a Public-Private Partnership (PPP), with a funding ratio of 70% from the state and 30% from private entities. However, it has now transitioned to a fully state-funded initiative due to low financial viability, which discourages private investment.
Despite full state funding, various contractors, including major local companies like Hoa Phat, VinFast, Thaco, and Deo Ca, as well as international technology partners, will be engaged in the project.
While railways themselves may not be lucrative for private investment, there is significant financial potential in manufacturing equipment, constructing rail lines, and servicing, which offers lucrative opportunities amounting to billions of dollars to private firms.
Additionally, the construction of stations can either be developed through the PPP model or entirely privatized, presenting attractive prospects worth up to $22 billion, indicating that the railway initiative will see public funding paired with private management.
Timeliness of the Project Submission
Proposing this project at a late stage could hinder progress, especially considering its importance to the national economy. Vietnam’s discussions regarding the North-South railway started in 2006, with a formal proposal to the National Assembly in 2010, despite prevalent skepticism about its feasibility at that time.
With fourteen years passed, any further delays would be imprudent.
Party Chief To Lam highlighted successful high-speed rail developments in other nations, and Minister of Planning and Investment Nguyen Chi Dung has advocated for an increase in speed targets from 250 km/h to 350 km/h.
Communication and Public Engagement
Effective communication should not shy away from outlining both opportunities and obstacles. For years, the focus has been predominantly on promoting the project and favorable conditions to garner public support, but it’s crucial to acknowledge the significant challenges that exist.
Thus, the National Assembly is called to develop comprehensive mechanisms and policies, outline responsibilities, and identify key strategies for successful project execution.
Moreover, the National Assembly’s resolution should emphasize anti-corruption measures and communication strategies while avoiding overly detailed technical stipulations. Detailed provisions can be defined by the Prime Minister and the government upon approving the feasibility study.
The Importance of Public Support
Moral support from the public is vital; without it, the project may struggle to succeed. Therefore, raising awareness, fostering patriotism, and cultivating national pride should be prioritized to secure widespread community backing across different societal sectors for effective project implementation.
