New Railway Act: Important changes for rail transport!

New Railway Act: Important changes for rail transport!

In a recent session of the National Assembly, Construction Minister Tran Hong Minh reported on the revised draft of the Railway Law. The draft was adapted to incorporate specific provisions for investments in railway construction that emerged from the National Assembly's draft resolutions. This is a key step in promoting railway infrastructure in Vietnam, as four policies have already been included in the draft law. The new regulations are scheduled to come into force from July 1, 2025, while the remaining provisions will take effect from January 1, 2026.

The revised draft law contains a total of four chapters and 60 articles. In the process, 20 articles of the original draft resolution were legalized and 33 articles were revised to meet current requirements. Of particular note, the scope of specific policies has been limited to major national rail projects, allowing for targeted investment in infrastructure. In addition, new regulations on independent supervision and state administration will be included in the draft.

Important changes and measures

During the revision of the draft law, some provisions were deleted. For example, three guidelines on landfills, building materials and forest conversion should no longer be part of the law. For this purpose, two new guidelines for capital allocation and mobilization have been introduced. A total of 19 articles were deleted because their regulation falls under the responsibility of the government and the minister.

The technical revision of the draft law aims to clarify the effectiveness and transitional provisions. This process was supported by the Chairman of the Committee on Science, Technology and Environment, Le Quang Huy, who stressed the need for a thorough review and addition of the specific mechanisms and policies. The draft will now be proposed for immediate adoption at the ninth session of the National Assembly.

Additional mechanisms for urban development

An important step in promoting urban development is supporting an urban development mechanism (TOD model) that is intended to optimize the use of land funds around train stations. These measures are intended to promote infrastructure efficiency while strengthening local authority to make planning and monitoring more structured.

In a broader context, the Railway Act lies in the context of federal German legislation, which is also subject to strict regulations. According to the provisions of the Basic Law, the federal railways are run as commercial enterprises under private law. Railway traffic administration is the responsibility of the federal government, and important laws such as the General Railway Act (AEG) and the Federal Railway Traffic Administration Act (BEVVG) regulate key aspects such as safe operational management and the maintenance of the infrastructure.

This comprehensive legal framework, which is also available on the website EBA presented illustrate the close connection between national planning and legal regulation in the area of ​​railway infrastructure. The current amendment to the Vietnamese Railway Law also offers a perspective on modern investment mechanisms that should be in line with international standards.