The project is iconic and strategically significant.

The North-South high-speed railway line is a symbolic project with strategic significance, and is of particular importance in terms of economics, politics , and society.

Developing sustainable and modern transportation methods.

Over the past period, the Central Committee of the Communist Party of Vietnam and the Politburo have issued numerous conclusions regarding the investment policy for the high-speed railway project on the North-South axis. Specifically, at the 10th Plenum of the 13th Central Committee, the principle of investing in the entire line, with a speed of 350 km/h, was unanimously agreed upon. Relevant agencies were tasked with completing the necessary documentation to submit to the 15th National Assembly at its 8th session for consideration and approval of the policy, along with specific mechanisms and policies to mobilize resources and streamline investment procedures.

Minister of Transport Nguyen Van Thang presents the proposal on the investment policy for the high-speed railway project on the North-South axis - Photo: National Assembly

Presenting the Report on the investment policy for the North-South high-speed railway project at the 8th Session of the 15th National Assembly, Minister of Transport Nguyen Van Thang stated that, in implementation of Resolution No. 55-NQ/TW dated September 20, 2024, of the 10th Central Committee of the 13th Party Congress; Conclusion No. 1049/KL-UBTVQH15 dated November 8, 2024, of the Standing Committee of the National Assembly on the investment policy for the North-South high-speed railway project; and the preliminary verification report of the National Assembly's Economic Committee, the Government has directed the Ministry of Transport to incorporate and finalize the pre-feasibility study report and has submitted a report to the National Assembly on the decision regarding the investment policy for the North-South high-speed railway project.

According to Minister Nguyen Van Thang, the project's pre-feasibility study report assessed the domestic and international context and the development of railway infrastructure. It also clearly stated the reasons why the North-South high-speed railway line was not approved by the National Assembly in 2010, due to concerns about speed, operating methods, and investment resources, given the low size of the economy at the time (GDP was $147 billion) and high public debt (56.6% of GDP).

"With the ever-increasing demand for transportation, the size of the economy in 2023 reached $430 billion, nearly three times that of 2010; public debt is at a low level of about 37% of GDP; and with construction expected to begin in 2027, the size of the economy is estimated to reach $564 billion, so resources for investment are no longer a major obstacle," the Minister emphasized.

Based on political, practical, and scientific foundations, as well as the domestic and international context, the project's pre-feasibility study report analyzed and clarified the necessity of investment with five reasons: realizing the Party's policies and orientations; implementing resolutions and conclusions of the Politburo and plans approved by competent authorities to create an important foundation for Vietnam to become a developed, high-income country; strengthening regional connectivity and growth poles, creating a ripple effect and opening up new economic development spaces; restructuring urban areas, population distribution, and economic restructuring; and increasing the competitiveness of the economy.

Simultaneously, it is necessary to ensure transportation needs on the North-South corridor, meeting the requirements of socio-economic development; restructure the transportation market share to suit the advantages of each mode; create a foundation and impetus for the development of the railway industry and supporting industries; develop sustainable, modern, and environmentally friendly transportation methods, contributing to reducing traffic accidents, environmental pollution, responding to climate change, and contributing to ensuring national defense and security.

The head of the Ministry of Transport affirmed that the investment project is in line with the policies, strategies, and socio-economic development plans approved by the Party, the National Assembly, and the Government; and is consistent with the national master plan, the railway network development plan, and the plans of relevant sectors, regions, and localities.

The high-speed railway line starts in Hanoi (Ngoc Hoi station) and ends in Ho Chi Minh City (Thu Thiem station), passing through 20 provinces and cities; the total length of the line is approximately 1,541 km. The new line will be a double-track, 1,435 mm gauge, electrified railway with a design speed of 350 km/h and a load capacity of 22.5 tons per axle; it will transport passengers, meet dual-use requirements for national defense and security, and can transport goods when needed.

The railway runs on rails, using distributed propulsion technology for passenger trains and centralized propulsion for freight trains; the signaling system is equivalent to the systems currently used in developed countries that operate high-speed rail.

The preliminary total land requirement for the project is approximately 10,827 hectares, with about 120,836 people to be resettled; the preliminary total investment is approximately VND 1,713,548 billion (approximately USD 67.34 billion).

The state budget is expected to allocate funds in medium-term public investment plans to complete the project by 2035, with funding allocated over approximately 12 years (from 2025 to 2037), averaging about US$5.6 billion per year, equivalent to about 1.3% of GDP in 2023 and about 1.0% of GDP in 2027 (the project commencement date). The implementation process will mobilize diverse legal sources of funding.

Regarding the implementation schedule, the project aims to complete the preparation and approval of the feasibility study and design in 2025-2026; commence construction in 2027; and strive for the basic completion of the entire route by 2035.

Opening up new avenues for economic development.

Evaluating the project's effectiveness, Minister Nguyen Van Thang affirmed that the high-speed railway line on the North-South axis is a symbolic project with strategic significance, especially important in terms of economics, politics, society, national defense, security, and international integration.

The National Assembly heard a presentation on the investment policy for the high-speed railway project on the North-South axis.

Investing in a high-speed railway line along the North-South axis will bring significant benefits to the economy, such as creating a foundation and impetus for national development in the new era, enhancing national competitiveness; meeting transportation needs, and restructuring transportation in a way that maximizes the advantages of each mode.

Furthermore, it opens up new economic development opportunities and resources through the efficient exploitation of land; the development of the construction and building materials industries; the development of tourism, services, and urban areas; the reduction of environmental pollution; the reduction of traffic accidents; the creation of millions of jobs; and, during the construction period, is estimated to contribute approximately 0.97 percentage points per year to the country's average GDP growth.

In terms of financial efficiency, preliminary calculations show that, during the first four years of operation, the state needs to partially support the infrastructure maintenance costs using economic development funds, similar to the current national railway system; the payback period is approximately 33.61 years.

Regarding the effectiveness in ensuring national defense and security: The high-speed railway creates an additional vertical axis for operational mobility in case of emergencies, meeting the requirements of the new situation. Furthermore, with mitigation measures, the project ensures compliance with the Law on Environmental Protection.

To ensure a sufficient workforce for the railway sector in general, and the North-South high-speed railway in particular, the Government has directed the implementation of a railway human resource development plan. Specifically, for the high-speed railway, the plan proposes a human resource training program with three training types and four levels of qualification for five different entities.

Furthermore, to ensure the project's objectives and requirements are met and to suit Vietnam's conditions, the Government proposes mobilizing maximum domestic and foreign resources to implement the project. On the other hand, to ensure the project's completion and maximize investment efficiency, the Government will direct relevant agencies to perform their duties and responsibilities during the subsequent implementation phases.

"To successfully implement and complete the entire project as planned, the project proposes 19 special policies under the authority of the National Assembly and 5 special policies under the authority of the Government," Minister Nguyen Van Thang stated.

According to Vu Hong Thanh, Chairman of the National Assembly's Economic Committee, in accordance with the assignment from the National Assembly Standing Committee, the Economic Committee was tasked with overseeing the review of the investment policy for the North-South high-speed railway project. Following legally mandated procedures, the Standing Committee of the Economic Committee held meetings with several experts, scientists, and associations on the matter, coordinated with relevant agencies to organize a survey team for the project, and held a plenary session to review the investment policy.

"The project meets the criteria for a nationally important project under the authority of the National Assembly to decide on investment policies and basically satisfies the requirements for documentation as stipulated in the Law on Public Investment," Mr. Vu Hong Thanh assessed, adding that the Economic Committee agrees on the necessity of investing in the project based on the political and legal grounds and reasons stated in Submission No. 767/TTr-CP.

Regarding the scope, scale of investment, and preliminary design plan, the project is fundamentally consistent with the Railway Network Planning for the period 2021-2030, with a vision to 2050; therefore, the Economic Committee generally agrees with the Government's proposal. However, it is requested that during the feasibility study phase, the Government direct relevant agencies to thoroughly review and select the optimal option for connecting the high-speed railway line with the national railway network, urban railways, other transport systems, and with regional and international railway networks.

Minister of Transport Nguyen Van Thang affirmed: The goal of investing in and building the high-speed railway is to meet transportation needs, contribute to restructuring the transportation market share on the North-South corridor in an optimal and sustainable way, create a foundation and driving force for socio-economic development, and ensure national defense and security.

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Source: https://congthuong.vn/bai-1-cong-trinh-co-tinh-bieu-tuong-y-nghia-chien-luoc-359513.html