Brian Jeffrey
The proposed revision of the Railway Law aims to establish frameworks that will motivate private entities and individuals to invest in railway infrastructure through diverse contractual arrangements, indicating a movement towards a more varied and decentralized evolution of Vietnam’s railway network.
On May 27, Minister of Construction Tran Hong Minh, acting on behalf of the Prime Minister, shared the Government’s suggestions for the revisited Railway Law, which features several innovative policies intended to enhance railway development.
Diverse funding sources and public-private collaboration
The proposed law is designed to harness local and private investment by permitting a variety of contract models for railway infrastructure, including BT (Build-Transfer), BOT (Build-Operate-Transfer), BTO, BLT (Build-Lease-Transfer), and BTL (Build-Transfer-Lease).
“Local authorities can utilize their budgets for land clearance, resettlement assistance, and various parts of the national railway system’s infrastructure,” explained Minister Minh.
The draft law also outlines the specific roles of various parties involved in constructing both the national and local railway systems.
“These legal guidelines lay the foundation for infrastructure investment, including projects that combine usage such as dual-purpose rail-road bridges like Lach Huyen and Can Tho 2,” the minister added.
Encouraging private management via leasing and operational rights
The bill seeks to broaden the range of enterprises in railway management by proposing mechanisms for time-limited leases and the transfer of rights for managing state-funded railway assets. Approaches like “public oversight – private operation,” “public funding – private management,” and “private capital – public usage” are promoted.
The draft also aims to update the registration process for railway vehicles, adapting inspections to different railway types and simplifying the administrative procedures related to evaluation and certification, all while adhering to global standards.
Development of industry and training of workforce.
The law proposes identifying certain railway products as high-tech, qualifying them for priority support. This initiative is intended to attract investment, strengthen the railway industrial base, and nurture related industries.
Decentralization and simplification of authority
A significant advancement in the draft law is the substantial decentralization of authority to local government entities. Responsibilities that were previously under the jurisdiction of the Prime Minister will now be delegated to the Minister of Construction and local authorities. This includes approving plans for railway stations and routes, alongside setting service life standards for railway vehicles.
More specifically, local governments will take charge of 10 administrative processes, which encompass:
Approving and licensing level crossings for local and specialized railways
Issuing certificates for railway vehicle registration
Granting licenses to train drivers for local and specialized services
The Minister of Construction will now be responsible for detailed regulations regarding the lifespan of railway vehicles, a duty that was formerly designated to the government under the 2017 Railway Law.
Regulation and financial assistance for social-purpose rail transport
Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology, and Environment, expressed support for the breadth and relevance of the draft law. However, he called for more precise definitions concerning urban rail, high-speed rail, and specialized railway systems, along with regulations on railway business operations and management of land adjacent to train stations.
He also suggested that the Government pursue higher-level approvals for specific frameworks related to railway land development to guarantee consistency with legal requirements and alignment with Party and State policies.
Regarding financial backing for railway services aimed at public welfare or specialized tasks, Huy stressed the importance of clarifying cost calculation standards, reimbursement procedures, and ensuring transparency in funding mechanisms.
The Vinh
