Minister of Construction Tran Hong Minh has outlined the key factors behind the increased investment for the Lao Cai-Hanoi-Hai Phong railway project, including site clearance costs, exchange-rate changes and higher material costs.
On August 12, the 16th National Assembly discussed adjustments to the investment policy for the Lao Cai-Hanoi-Hai Phong railway project.
Minister of Construction Tran Hong Minh speaks at a session of the 16th National Assembly.
Speaking at the end of the session, Minister of Construction Tran Hong Minh said the Government had detailed both objective and subjective reasons for the proposed adjustments in its submission to the National Assembly.
According to the minister, new requirements stemming from the Party’s policies on economic growth, restructuring and digital transformation have led to changes in national planning and the railway network.
Another factor was that studies conducted by domestic consultants and the project owner had not fully assessed all relevant elements during the project’s initial research stage.
Site clearance and rising input costs also contributed to the increase in total investment. Costs in several localities, including Hanoi and Hai Phong, rose significantly, while mechanisms and policies related to site clearance added approximately VND 34 trillion to the project’s costs.
The project has also been affected by exchange-rate adjustments and changes in the costs of rolling stock and materials.
Minister Tran Hong Minh said the Government had analyzed and explained the factors behind the change in total investment in the dossier submitted to the National Assembly.
For issues raised by lawmakers that could not be fully addressed due to limited speaking time, the Ministry of Construction will continue reviewing their comments and provide further explanations at subsequent working sessions.