A train of the Vietnam Railways Corporation (Photo: VNA) VNRA Deputy General Director TranThien Canh said the East Japan Railway Company (JREast), a leading railway operator in Japan, has sent a document to the MoTshowing its interest in a project on upgrading the Hanoi - Hai Phong rail routeand a railway project linking with the Hai Phong international gateway port.
In June 2022, a JREast delegation had the first working session with the MoT and the VietnamRailways Corporation and made a fact-finding trip of the Hanoi - Hai Phong railroute.
At a recent meeting with the MoT,Spanish Ambassador to Vietnam Pilar Méndez Jiménez said her country, home tothe world’s second longest express railway system, wishes to cooperate with theministry in developing the railway system, including high speed rail (HSR).
Talking to MoT officials at anothermeeting, a World Bank representative also voiced interest and willingness towork with Vietnam to invest in the North - South express railway project.
The MoT noted the share of railtransport has been shrinking and for many years, there haven’t been any newrail routes taking shape.
The strategy for socio-economicdevelopment for 2021 - 2030, adopted at the 13th National Party Congress,requested due attention be paid to rail transport development, some sections ofthe North - South high-speed railway projects carried out, and the construction ofurban railways in Hanoi and Ho Chi Minh City sped up.
The railway sector’s capital demand by2030 is estimated at about 240 trillion VND (10.2 billion USD), including over46.3 trillion VND for upgrading existing routes, 112.3 trillion VND forbuilding the high-speed railway, and over 80 trillion VND for developing new normalrail routes.
Despite many investors’ interest inthose projects, some experts pointed out that numerous difficulties arehampering the attraction of private and foreign investment.
Transport expert Nguyen Xuan Thuyheld that with clear and transparent mechanisms, it is completely possible toattract private investment, and only when private capital is mobilised effectivelycan demand for railway infrastructure development be met.
The Vietnam Railway Authority saidthe biggest barrier to private investment attraction is that infrastructureprojects in this field require huge capital while their profit is low. Meanwhile,specialised agencies have yet to issue guidance for the implementation of supportmechanisms for investors.
State agencies, railway businesses,and investors are expecting improvements in railway infrastructure development followingthe Politburo’s issuance of Conclusion No 49-KL/TW on February 28, 2023 onorientations for the development of rail transport in Vietnam by 2030, with avision to 2045.
Minister of Transport Nguyen VanThang said to develop the railway network for 2021 - 2030, with a vision to2050, the ministry has proposed increasing medium-term public investment and prioritisingmajor railway projects to enhance transport connectivity and reduce logisticscosts during 2021 - 2025./.
VNA
