Revolution in rail transport: New law promotes private investment!

Revolution in rail transport: New law promotes private investment!

In a crucial step to boost railway development, Construction Minister Tran Hong Minh has highlighted the need for a comprehensive change in the law. These measures are intended not only to strengthen mobility in Vietnam, but also to establish the state budget as a key resource for mobilizing investments for railway infrastructure. The minister emphasizes that all economic sectors must be included in development to ensure effective infrastructure. The government is proposing regulations for investment in the railway sector, which should also mobilize local resources to achieve the ambitious goals. Vietnam.vn reports that various contract forms such as BT, BOT, BTO, BLT and BTL are being promoted to ensure broad participation in these investment projects.

Another important element in this process is the possibility for communities to use their budgets for compensation, resettlement assistance and investments in the construction projects. In addition, clear responsibilities should be established for companies that invest in the railway sector. The proposed design also envisages the application of an overall technical design (FEED design) instead of the basic design to further increase the efficiency of the projects.

New governance structures

Particularly noteworthy is the decision that the provincial people's committees will be able to decide directly on investments in light rail projects in the future, without having to go through complex investment policies. This decentralization is expected to accelerate the investment process and enable the completion of the light rail network in Hanoi and Ho Chi Minh City by 2035. In order to promote efficiency between railway lines and other modes of transport, new guidelines for the management and use of railway infrastructure will also be introduced.

The development of the railway industry is considered strategically important, particularly with regard to national security. However, there is currently a lack of concrete regulations in the current draft law, which requires a comprehensive review of these proposals. The chairman of the Committee on Science, Technology and Environment, Le Quang Huy, therefore calls for a careful assessment of the impact of any change in the law.

EU legal framework for railway infrastructure

The proposed measures in the area of ​​railway infrastructure are also in line with the provisions of the EU Directive, which emphasizes the independence and impartiality of infrastructure managers. Article 7a of this directive requires Member States to ensure that infrastructure managers are independent in terms of organization and decision-making. This means that railway companies are not allowed to exercise decisive influence over these infrastructure managers. The mobility of people in essential functions must not lead to conflicts of interest, which is a further step towards transparency and efficiency. Eur-lex.europa.eu emphasizes that traffic management and maintenance planning must be both transparent and non-discriminatory.

Another aspect of this legal framework is financial transparency and the need for coordination mechanisms between infrastructure managers and railway companies to ensure seamless operation and effective use of infrastructure. These measures are crucial to develop a unified European railway network and exchange best practices. The Member States are also organized in a network to exchange the best strategies for improving infrastructure.

In summary, the new legislative proposals and European guidelines aim to strengthen rail transport as a strategic means of transport in Vietnam, taking into account both local and international standards.