At the 9th extraordinary session, the 15th National Assembly will consider a resolution to pilot a number of specific mechanisms and policies to develop the urban railway system in Hanoi and Ho Chi Minh City. The Ministry of Transport is assigned to preside over and coordinate with relevant ministries and agencies to draft this resolution.

A representative of the Ministry of Transport said that the draft resolution standardizes 6 groups of specific and special mechanisms and policies with specific goals:

Policy Group 1 on capital mobilization: Focus on capital mobilization to invest in urban railway network system. Be flexible in allocating capital from central and local budgets, ODA capital, preferential loans, ensuring project implementation progress, and performing some investment preparation tasks in advance.

The two cities proposed a solution: During the investment preparation and implementation of investment projects, the Prime Minister is allowed to decide to balance and arrange the medium-term public investment plan, annually supplementing the central budget with a target for the local budget, not exceeding VND 215,350 trillion (about USD 8.61 billion) for Hanoi and not exceeding VND 209,500 trillion (about USD 8.38 billion) for Ho Chi Minh City in the medium-term public investment plans for the periods 2026-2030 and 2031-2035.

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The Ministry of Transport has proposed six specific mechanisms for urban railway development in Hanoi and Ho Chi Minh City. Photo: T. Dung

Policy group 2 on investment implementation procedures and processes : Shorten project implementation progress from the project preparation stage; decentralize and delegate authority in project appraisal and approval; remove obstacles in construction norms and unit prices; shorten the time for organizing contractor selection; create a mechanism for payment capital sources.

Policy group 3 on TOD model development: Applying planning solutions to develop urban areas associated with urban railway traffic, effectively exploiting land funds around stations, and improving the efficiency of investment in urban railway development.

Policy Group 4 on railway industry development, technology transfer and training: Regulations on specific contents on selection and application of standards and norms for urban railway lines; development of science, technology and training for human resource development; industrial development and technology transfer.

Policy group 5 on construction materials and waste dumps : Reduce procedures, implement decentralization, ensure adequate and timely supply of construction materials and waste dumps to serve urban railway projects and urban railway projects following the TOD model.

Policy Group 6 on policies specifically applied to Ho Chi Minh City: Regulations on contents similar to those in the Capital Law for Ho Chi Minh City on revenues in the TOD area; loan forms and total outstanding loans. And applying standards and criteria for selecting investors for TOD projects; decentralization and delegation of authority to appraise and approve environmental impact assessment reports, in order to create similar mechanisms and policies between Hanoi and Ho Chi Minh City on priority for urban railways.

According to Deputy Minister of Transport Bui Danh Huy, the above policies have been fully assessed for impact and the benefits they bring have been determined.

More proactive local

With practical experience, Mr. Bui Xuan Cuong, former Head of the Urban Railway Management Board, now Vice Chairman of the Ho Chi Minh City People's Committee, said that the metro implementation process is both bound by international standards and contracts and must comply with Vietnamese law. The initiative and authority of the investor is very low, leading to many passive problems.

Therefore, Mr. Cuong believes that if given authority, the city will be more proactive, and at the same time increase the role of the subjects directly involved in the project. However, for the locality to decide and do it, there needs to be specific accompanying policies.