National Assembly finalizes investment in North-South high-speed railway, striving to complete by 2035

The resolution was passed on the afternoon of November 30 with 443/454 delegates present in favor; 7 people disagreed; 4 people did not vote.

The project has a total length of 1,541 km, starting at Ngoc Hoi station (Hanoi), ending at Thu Thiem station (Ho Chi Minh City), passing through 20 provinces and cities including Hanoi, Ha Nam, Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Dong Nai, Ho Chi Minh City.

The entire line is newly invested with a double gauge of 1,435 mm, a design speed of 350 km/h, a load capacity of 22.5 tons/axle; 23 passenger stations, 5 freight stations; passenger transport, meeting dual-use requirements for national defense and security, and can transport goods when necessary. The project is applied in the form of public investment, with a preliminary total investment of 1,713 trillion VND (67 billion USD) from the budget in medium-term public investment periods and other legal capital.

The National Assembly requested a feasibility study report to be prepared from 2025, striving to basically complete the project by 2035. Preliminary estimates show that the total land use demand of the project is about 10,800 hectares; an estimated 120,836 people need to be resettled.

The National Assembly Standing Committee said the Government has calculated the huge direct and indirect economic benefits, but did not include them in the project's revenue and financial efficiency. The revenue calculated for capital recovery mainly comes from transportation and commercial exploitation revenues to balance the costs of operating and maintaining vehicles, maintaining infrastructure, and paying infrastructure fees to the State.

Prime Minister issued bonds to raise capital for the project

The project applies many special mechanisms, in which the Prime Minister is allowed to issue government bonds to supplement the annual budget and investment plan for the project in case the budget does not meet the progress; mobilize official development capital ODA, foreign preferential loans without having to prepare a proposal; apply according to the regulations of foreign donors in case Vietnamese law does not have regulations or other regulations.

The Prime Minister is also allowed to use increased revenue, annual savings from the central budget and other sources for the project; adjust the medium-term and annual public investment plans of the central budget between ministries, central agencies and localities to allocate capital for the project. The project does not have to assess the ability to balance capital according to the Law on Public Investment.

The National Assembly allows the provincial People's Committee to establish and adjust zoning plans and detailed plans for the vicinity of railway stations to determine the location, boundaries, and area of ​​land to be recovered. In the vicinity, 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 compensate, support, and resettle according to the planning of the area surrounding the railway station to create a land fund for auction for urban development according to regulations. The proceeds from exploiting the land fund in the vicinity of the high-speed railway station, after deducting costs, the locality is allowed to keep 50% and pay 50% to the central budget.

Provinces are also allowed to adjust mining reserves, extend mining periods, and increase the capacity of mineral mines for commercial construction materials according to project needs without having to go through procedures to adjust provincial planning, without having to establish projects, without having to appraise and approve environmental impact assessment reports. This regulation applies to licensed mineral mines that are in operation, still in exploitation period or have expired but still have reserves and have not closed the mine.

For mineral mines included in the construction materials survey dossier for the project but not yet granted an exploitation license, the provincial level can adjust and supplement the geological and mineral management plan in the provincial planning without having to go through the procedure to adjust the provincial planning.

The Resolution allows organizations and individuals exploiting minerals for projects to not have to go through the procedures for granting mining licenses for mines included in the construction materials survey dossier for the project; not having to prepare mineral exploitation investment projects and environmental impact assessment reports but making commitments to protect the environment.

For mines that have exhausted their reserves, the investor proposes that the provincial People's Committee add new mines to the construction material survey dossier for the project.

Government selects enterprises to receive technology transfer

According to the resolution, organizations and individuals presiding over scientific and technological activities serving the project are allowed to decide on limited bidding, designated bidding, and placing orders to select contractors to provide services and goods. Enterprises are entitled to incentives as high-tech enterprises during the period of performing scientific and technological tasks serving the project. Scientific and technological tasks serving the project are also exempted from income tax. Organizations and individuals participating in training high-tech human resources for the project are entitled to high-tech incentives.

The National Assembly allows the Government to prescribe criteria for selecting organizations, state-owned enterprises assigned tasks or other Vietnamese enterprises to place orders for the provision of railway industrial services and goods; research, application, and technology transfer.

The Prime Minister decides on the list of railway industrial services and goods assigned to state-owned organizations and enterprises or ordered to Vietnamese organizations and enterprises.

The general contractor and contractors must give priority to using products, goods and services that can be provided domestically. For international bidding packages, the bidding documents must include a commitment to technology transfer and human resource training for Vietnamese partners to master management, operation, exploitation and maintenance; and gradually master the technology. The authority with investment decision-making authority may decide to divide the project into component projects and sub-projects.

During the period when the National Assembly is not in session, the National Assembly Standing Committee will decide to adjust the project investment policy, except in cases of increasing the total investment.