On May 27^th, the National Assembly heard the proposal and the appraisal report on the draft amended Railway Law.

The Minister of Construction presented the proposal to the National Assembly.

On behalf of the Government to present the proposal, Minister Tran Hong Minh stated that the development of the amended Railway Law aims to further institutionalize the Party’s and State’s policies on developing a modern, synchronized, sustainable railway system with clear priorities and focus.

The draft of the law will resolve the institutional shortcomings and motivate the railway to develop and promote the competitiveness of railway transportation. The draft concentrates on 5 major issues which are breakthroughs in establishing a legal framework for railway development.

Regarding investment in the development of railway facilities, the law added provisions to mobilize the resources of localities and other economic sectors. This also encourages every organisations and individuals to contribute to the railway facilities development through several contract form (BOT, BT, BTO, BLT, BTL…) and the provision of exploiting the land in stations’ areas.

The draft law also includes provisions allowing local governments to use their own budgets to participate in land clearance, compensation, resettlement support, and the construction of certain components of national railway infrastructure.

To accelerate project implementation and improve investment efficiency in railway works, the draft law adds a provision allowing the use of a front-end engineering design (FEED) in place of the basic design in feasibility study reports.

For urban railway lines that are part of approved master plans, the draft law allows provincial People’s Committees to immediately initiate project preparation, appraisal, and investment decisions without going through the procedures for preparing and approving investment policies as currently required by law.

Minister of Construction Trần Hồng Minh emphasized: "This provision is a breakthrough solution to remove procedural bottlenecks in urban railway investment at the local level. It helps realize the Politburo’s Conclusion No. 49 on accelerating investment and completing the urban railway network in Hanoi and Ho Chi Minh City by 2035".

Regarding railway industry development and human resource training, the draft law includes a requirement that for international bidding packages in railway or railway-related industrial projects, foreign contractors must commit to technology transfer and workforce training for Vietnamese partners, enabling them to master operations, management, maintenance, and gradually take control of core technologies.

Contractors and investors involved in railway infrastructure projects, as well as in the procurement or manufacturing of locomotives and carriages, must prioritize the use of domestically produced goods, services, and materials. This aims to maximize investment resources for developing the domestic railway industry and build a sufficiently large market to support supporting industries.

The draft also includes regulations on the list of railway industrial goods and services to be assigned or procured; and criteria for selecting state-owned or Vietnamese enterprises for such assignments or contracts.

Additionally, it encourages the research, application, and transfer of technology, along with special policies for organizations and individuals engaging in science and technology activities to support the development of the railway industry.

"Given the high capital demand of railway industry development, this provision ensures market stability for pioneering enterprises investing in domestic railway industry growth. It also institutionalizes the Politburo’s directives on breakthroughs in science, technology, innovation, and national digital transformation," Minister Minh said.

The Minister also noted that this amendment eliminates four administrative procedures, revises implementation authority for ten others to facilitate streamlined processes, and retains six procedures that remain relevant.

The draft law also grants broader autonomy to local governments in railway infrastructure investment and management. Several powers previously held by the Government and the Prime Minister are proposed to be transferred to the Minister of Construction and local authorities.