The draft Law on Railways (amended) recently submitted to the Government has institutionalized breakthrough policies and mechanisms to mobilize all resources for investment in developing railway infrastructure.
Businesses "waiting" for the mechanism
For the past few months, Dr. Yap Kwong Weng, CEO of Vietnam SuperPortTM, has been busy implementing logistics infrastructure development investment projects, including the connecting railway project.
There needs to be a mechanism to attract investment capital for railway infrastructure (In photo: Nhon - Hanoi Railway Station urban railway). Photo: Ta Hai.
Vietnam SuperPortTM is an 83-hectare multimodal logistics port in Vinh Phuc. This port is positioned as a key transit hub along the Lao Cai - Hanoi - Hai Phong - Quang Ninh railway route.
"Developing the logistics industry associated with connecting transport infrastructure, especially railway infrastructure, will contribute to improving national logistics capacity as well as enhancing Vietnam's integration into the global supply chain," Dr. Yap affirmed.
Mr. Yap also said that although investing in railway infrastructure has a high initial investment rate and the payback period may be long, this is a sustainable strategy.
However, Mr. Yap Kwong Weng also admitted that there are still many barriers, especially investment incentive policies. According to him, incentive policies such as tax exemptions, loan support, and simplified investment procedures need to be more flexible and consistent so that businesses can access them easily.
Sharing the same view, Ms. Nguyen Thi Thu Thao, Head of Public Relations and Shareholder Relations, Gemadept Joint Stock Company, said that connecting railways with seaports has been mentioned for many years and has always been the desire of those working in logistics.
Having a railway to the port helps improve operational efficiency and creates a competitive advantage for port and logistics businesses. Therefore, the State needs to have a guiding policy and create conditions to maximize resources from economic sectors, focusing on synchronous investment in transport infrastructure in key economic zones.
Concretize breakthrough policies
Mr. Duong Hong Anh, Deputy Director of the Vietnam Railway Authority, said that the current Railway Law has provisions on mobilizing resources for investment in developing and exploiting railway infrastructure. However, these policies have hardly been implemented in practice.
In the draft Law on Railways (amended) recently submitted to the Government, the Ministry of Transport has legalized policies into specific, breakthrough regulations to create a legal corridor for railway development.
Specifically, the draft has amended and supplemented regulations to maximize the mobilization of resources for railway infrastructure development, in which the State budget plays a leading role; encouraging all organizations and individuals to participate in investing in railway infrastructure development through many forms of contracts (BT, BOT, BTO, BLT, BTL...).
Regarding the mobilization of local resources, the draft Law allows localities to use their budgets to participate in compensation, resettlement support, and investment in the construction of some national railway infrastructure items.
Supplementing regulations on exploiting land funds in the vicinity of railway stations (TOD model) to maximize resources for developing railway infrastructure and specifying the responsibilities of entities in implementation.
Notably, the provincial People's Committee is allowed to adjust the function of using land in the vicinity of railway stations to exploit land funds and added value from land.
The Provincial People's Council decides to use the local budget to implement an independent public investment project to carry out compensation, support, and resettlement according to the planning of the area surrounding the railway station to create a land fund for auction for urban development.
Revenue from land exploitation in the vicinity of local railway stations will be fully paid into the provincial local budget.
The Government shall specify the ratio of revenue from land exploitation in the vicinity of national railway stations to the central budget and provincial-level local budgets.
Attracting private capital, reducing budget burden
Another notable point, according to Mr. Duong Hong Anh, is that the draft Law on Railways (amended) supplements regulations on leasing and transferring for a limited time the right to exploit railway infrastructure assets invested by the State.
According to experts, this regulation will help increase private participation in the railway industry, improve the quality of exploitation, reduce financial pressure on the State and ensure control over public assets.
In fact, the limited-term concession form helps the State not lose control over important infrastructure. After the exploitation period expires, the State can re-evaluate the effectiveness and adjust policies or find new partners.
In particular, the State can still intervene if the operating enterprise fails to meet quality requirements or violates the contract. This is an effective solution for the sustainable development of Vietnam's railway industry.
Not only businesses but also localities are looking forward to the legalization of mechanisms and policies for investment in railway infrastructure to attract investors.
A representative of the Hue City Department of Transport said that according to the plan, there will be a branch railway connecting to Chan May - Lang Co Economic Zone, forming a railway station and TOD model according to the station areas in Phu My and Chan May. Therefore, there needs to be mechanisms to mobilize non-budgetary investment resources to implement these plans.
Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong also said that by 2035, the city will strive to complete 7 metro lines (355km), and by 2045, 10 lines (510km). That is not to mention the research and implementation of extending metro line No. 1 to Dong Nai and Binh Duong provinces.
"To implement this, Ho Chi Minh City really hopes to have regulations on TOD development as well as the implementation and management of revenue sources in metro and railway areas...", Mr. Cuong said.
Source: https://www.baogiaothong.vn/co-che-dot-pha-hut-von-dau-tu-ha-tang-duong-sat-192250227223306976.htm
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