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Local News
13 February 2025

Vietnam Launches Urgent Plans For Urban Rail Network Expansion

New policies proposed to accelerate development and address bureaucratic hurdles for Vietnam's urban rail systems.

The Vietnamese government is aggressively pushing to develop urban rail networks, with proposals aimed at addressing administrative bottlenecks and accelerating implementation, particularly in Hanoi and Ho Chi Minh City. Minister of Transport Tran Hong Minh presented these plans during the National Assembly meeting on February 13, where he emphasized the urgent need for special policies to streamline investments and facilitate construction.

At the recent National Assembly session, Minister Minh outlined the framework for the proposed resolution which, according to him, is necessary to clear existing legal hurdles and meet the growing urban transport demand. He described urban rail transit as the backbone of public transport, integral to the country’s modern and sustainable urban development.

To expedite the project timelines, the government is advocating for the National Assembly to approve resolutions through expedited procedures, with tentative plans to finalize major proposals by February 2025. The proposed resolution includes six core policy clusters, focusing on mobilizing investment resources and simplifying operational procedures for the implementation of urban rail projects.

Among the proposed policies is the principle of advancing funding arrangements. The government suggests empowering the Prime Minister to allocate mid-term public investment plans and utilize existing budgetary savings more flexibly. According to the Minister, capital requirements should no longer necessitate project proposals under certain conditions, and local authorities should play an active role in organizing funding.

Specifically addressing Ho Chi Minh City, the proposals are poised to allow for extensive discretion over local infrastructure investments. The resolution aims to eliminate the requirement for preliminary project assessments, enabling immediate transitions to investment approvals.

Minister Minh articulated the need for differentiation between investment handling processes for urban rail initiatives and other civil construction undertakings, emphasizing the urgency of urban rail development due to its unique characteristics. The proposed resolution sets forth provisions for urban planning using the Transit-Oriented Development (TOD) model, which focuses on optimizing land use along public transport lines.

This model aims at increasing land availability and capturing additional land value directly linked to transit systems. Municipal authorities need to quickly adapt zoning laws to facilitate effective land-use changes, as outlined by the Minister during the session.

Echoing Minister Minh's sentiments, Vu Hong Thanh, head of the National Assembly’s Economic Committee, expressed their support for the detailed frameworks established by the resolution. He stated these measures are grounded on previously approved special policies related to urban zoning and infrastructure investments, reflecting operational needs and existing legal frameworks.

Nonetheless, during debates, concerns were raised about potential overlaps within the proposed rules and the practicalities of rent and land usage policies within the TOD framework. The Committee emphasized the necessity for regulations to be clear and mutually reinforcing to prevent future legal complications.

Specifically, the National Assembly members pointed out the lack of transparency and public participation, particularly concerning the tendering processes outlined for urban infrastructure development. They encouraged the government to reconsider some of the more flexible provisions for procurement, stressing the necessity for competitive bidding to safeguard public interests. This concern resonates particularly within the broader aims of the TOD model, which also seeks to align community investments with environmental sustainability.

The next steps for the Vietnamese government include developing comprehensive outlines of the TOD framework and how these regulations would affect future urban planning initiatives. This also involves clarification of transitional provisions for projects already underway, ensuring valid legal support for these urban rail initiatives.

Overall, Vietnam’s revitalized approach to urban rail network development reflects not only infrastructure ambitions but also broader socio-economic transformations targeting sustainable urban growth. Observers anticipate the quick passage of these resolutions as pivotal for the modernization of public transport systems across key cities.