Lao Cai - Hanoi - Hai Phong railway project creates about 90,000 jobs

As planned, this afternoon, February 10, the National Assembly Standing Committee will give its opinion on the investment policy of the Lao Cai - Hanoi - Hai Phong railway project.

Previously, the Government submitted a proposal to the National Assembly to consider and approve the investment policy for the Lao Cai - Hanoi - Hai Phong railway construction investment project.

According to the Ministry of Transport - the agency assigned to build and implement the project, this project aims to build a new, modern, synchronous railway line to meet the domestic and international transportation needs between Vietnam and China.

The railway will create an important driving force for rapid and sustainable socio-economic development. The project will promote advantages on the Lao Cai - Hanoi - Hai Phong economic corridor, ensuring effective connection of the domestic and international railway network; associated with ensuring national defense, security and international integration...

The project starts at the rail connection point across the border between the new Lao Cai station and Ha Khau Bac station (China), and ends at Lach Huyen wharf area (Hai Phong); passing through 9 provinces and cities.

The main line is about 390.9 km long and the 3 branch lines are about 27.9 km long. The project has a preliminary total investment of about 203,231 billion VND, equivalent to about 8,369 billion USD.

According to schedule, the project will be submitted to the National Assembly for investment approval in February 2025, start construction at the end of 2025 and complete construction in 2030.

According to the Ministry of Transport, based on traffic survey data, updated spatial development orientation, socio-economic development, and transport infrastructure development of the region, by 2050, the total transport demand on the corridor will be about 397.1 million tons of goods and 334.2 million passengers.

To restructure the transportation market share, reduce logistics costs to ensure sustainable development, based on the role and advantages of each mode of transportation, railway transportation needs to handle about 25.6 million tons of goods and 18.6 million passengers.

However, the existing railway line only meets the needs of about 4.1 million tons of goods and 3.8 million passengers, serving some goods, industrial materials, and short-distance tourists.

“Therefore, it is necessary to invest in a new railway line to meet the increasing transport demand on the corridor,” the Ministry of Transport informed.

In particular, according to the Ministry of Transport, the project creates a construction market, creating the premise for developing the railway industry and supporting industries.

Specifically, the project investment creates a construction market worth about 4.56 billion USD, estimated to create about 90,000 jobs during construction and about 2,500 permanent jobs during operation and exploitation. If the high-speed rail system is included, the urban railway will create a construction market of about 98.3 billion USD and millions of jobs.

According to the Ministry of Transport, similar to the North-South high-speed railway project approved by the National Assembly, the Lao Cai-Hanoi-Hai Phong railway project is large-scale and uses new technology for the first time in Vietnam. To successfully implement and complete the project on schedule, it is necessary to apply specific and special policies.

Specifically, the Ministry of Transport proposed to allow the application of 15/19 specific mechanisms and policies under the authority of the National Assembly and add 4 policies.

In particular, the Ministry of Transport proposed that contractors prioritize the use of domestic products. The reason is that, according to the Ministry of Transport's assessment, domestic railway enterprises are capable of receiving technology transfer for management, maintenance, operation, and exploitation. Some domestic enterprises have available facilities and factories capable of participating in the global value chain to supply industrial products, gradually receiving localization and mastering modern technology.

Experience from countries with developed railway industry shows that in order to receive and master technology, there must be a mechanism such as contractors giving priority to using products, goods and services that can be produced and supplied domestically.

For international bidding packages, the bidding documents must include commitments from the general contractor and foreign contractors on technology transfer and human resource training for Vietnamese partners to master management and operation work, and gradually master technology.