The Ministry of Transport has been assigned to draft a resolution featuring six special policy groups aimed at optimizing land use and granting Hanoi and Ho Chi Minh City greater autonomy in urban railway development.

At the ninth extraordinary session of the 15th National Assembly, lawmakers will review a pilot resolution introducing specific mechanisms and policies to accelerate the expansion of urban railway systems in Vietnam’s two largest cities.

The Ministry of Transport, in collaboration with relevant ministries and agencies, has been tasked with drafting this resolution.

A ministry representative stated that the draft resolution establishes six key policy groups designed to address critical issues in funding, project execution, land development, technology transfer, construction materials, and city-specific regulations.

1. Mobilizing capital for investment

Efforts will focus on securing diverse financial sources to develop an extensive urban railway network, ensuring flexible allocation of funds from the central and local budgets, official development assistance (ODA), concessional loans, and other lawful resources.

Both cities have proposed that, during project planning and implementation, the Prime Minister be authorized to balance and allocate mid-term and annual public investment budgets.

The proposed financial ceiling for Hanoi is approximately 215.35 trillion VND ($8.61 billion), while Ho Chi Minh City’s cap is set at 209.5 trillion VND ($8.38 billion) for the 2026-2030 and 2031-2035 investment cycles.

2. Streamlining investment procedures

The resolution seeks to shorten project timelines by accelerating the preparatory phase, decentralizing project appraisal and approval authority, addressing obstacles related to cost norms and construction pricing, expediting contractor selection processes, and creating a streamlined financial mechanism for payment disbursement.

3. Transit-Oriented Development (TOD) model

A key urban planning strategy will be the implementation of the TOD model, which integrates land use and transport planning to maximize the efficient use of land surrounding metro stations. This approach aims to enhance investment efficiency and improve urban railway sustainability.

4. Developing railway industry, technology transfer, and workforce training

The resolution will include specific regulations on selecting applicable technical standards and guidelines for urban railway projects. It also emphasizes research and technological advancement, human resource training, and industrial development to support long-term railway expansion.

5. Construction materials and waste disposal sites

Efforts will be made to simplify procedures and decentralize authority to ensure a steady supply of construction materials and designated disposal sites, enabling timely completion of urban railway projects.

6. Special policies tailored for Ho Chi Minh City

Ho Chi Minh City will receive similar regulatory benefits as Hanoi under the Capital Law, particularly concerning revenue collection within TOD zones, debt issuance options, and public debt limits.

Additionally, regulations on investor selection, environmental impact assessment approvals, and administrative decentralization will be aligned between the two cities to create a balanced policy framework for urban railway development.

Deputy Minister of Transport Bui Danh Huy stated that the proposed policies have undergone comprehensive impact assessments and are expected to deliver significant benefits.

Greater autonomy for local governments

Bui Xuan Cuong, former head of the Ho Chi Minh City Urban Railway Management Board and current Vice Chairman of the municipal People’s Committee, emphasized that metro projects often face constraints from both international contractual obligations and domestic legal requirements. These limitations have resulted in slow decision-making and delays.

Cuong argued that granting local authorities greater autonomy would improve project management efficiency and allow key stakeholders to take a more active role in execution.

However, he stressed that such autonomy must be accompanied by tailored special policies to ensure successful implementation.

N. Huyen