The train model of the HCM City – Cần Thơ railway. Photo: tinnhanhchungkhoan.vn) Hanoi (VNS/VNA) - Private investors are expected to begain interest in railway infrastructure development projects that have so farnot had significant success in raising private capital.
The CT Group recently proposed that the Prime Minister approve investment of 9.98billion USD to build a high-speed railway linking HCM City and the MekongDelta’s Can Tho city. The railway line will stretch 174km and have 12 stations,passing through HCM City, Binh Duong, Long An, Tien Giang and Vinh Longprovinces, and Can Tho city. It will be invested under the public-privatepartnership (PPP) form.
The CT Group is not the first private investor interested in railwayinfrastructure projects. In early 2018, Korea’s Lotte E&C applied forinvestment research in a project to upgrade the Yen Vien - Lao Cai railway andbuild another railway connecting Lao Cai - Ha Khau under the PPP method.
In March 2023, East Japan Railway Company also sent a document to the leadersof the Ministry of Transport expressing interest in a project to upgrade Hanoi-Hai Phong railway.
However, none of the above projects have made any progress on the ground,despite receiving active support from the Ministry of Transport.
In fact, unlike seaports, roads and aviation, investment in railwayinfrastructure in the form of PPP is always slow and receives little attentionfrom private investors.
The biggest barrier in luring private investment in railway infrastructuredevelopment is that projects in this field need very large investment capitaland offer low profits, leading to long payback periods.
In addition, incentive and support mechanisms for private investors have notyet been guided by competent agencies for implementation. Currently, there isstill no specific guidance on the railway development mechanism according tothe transit-oriented development (TOD) model, which integrates urban railwayprojects into real estate projects.
As the Politburo issued Conclusion 49-KL/TW, dated February 28, 2023,orientating the development of Việt Nam's railway transport to 2030 with avision to 2045, experts suggested that management authorities need to boldlypropose breakthrough legal mechanisms that are higher than normal legalregulations to solve the problem of resources for railway infrastructuredevelopment. In which, the top priority is to build specific mechanisms andpolicies to promote resources from the people and encourage investors toparticipate in TOD projects./.
The CT Group recently proposed that the Prime Minister approve investment of 9.98billion USD to build a high-speed railway linking HCM City and the MekongDelta’s Can Tho city. The railway line will stretch 174km and have 12 stations,passing through HCM City, Binh Duong, Long An, Tien Giang and Vinh Longprovinces, and Can Tho city. It will be invested under the public-privatepartnership (PPP) form.
The CT Group is not the first private investor interested in railwayinfrastructure projects. In early 2018, Korea’s Lotte E&C applied forinvestment research in a project to upgrade the Yen Vien - Lao Cai railway andbuild another railway connecting Lao Cai - Ha Khau under the PPP method.
In March 2023, East Japan Railway Company also sent a document to the leadersof the Ministry of Transport expressing interest in a project to upgrade Hanoi-Hai Phong railway.
However, none of the above projects have made any progress on the ground,despite receiving active support from the Ministry of Transport.
In fact, unlike seaports, roads and aviation, investment in railwayinfrastructure in the form of PPP is always slow and receives little attentionfrom private investors.
The biggest barrier in luring private investment in railway infrastructuredevelopment is that projects in this field need very large investment capitaland offer low profits, leading to long payback periods.
In addition, incentive and support mechanisms for private investors have notyet been guided by competent agencies for implementation. Currently, there isstill no specific guidance on the railway development mechanism according tothe transit-oriented development (TOD) model, which integrates urban railwayprojects into real estate projects.
As the Politburo issued Conclusion 49-KL/TW, dated February 28, 2023,orientating the development of Việt Nam's railway transport to 2030 with avision to 2045, experts suggested that management authorities need to boldlypropose breakthrough legal mechanisms that are higher than normal legalregulations to solve the problem of resources for railway infrastructuredevelopment. In which, the top priority is to build specific mechanisms andpolicies to promote resources from the people and encourage investors toparticipate in TOD projects./.
VNA
