Specific financial mechanism proposed for Vietnam Railways

A draft decree for Vietnam Railways aims to decentralise operations, streamline processes and unlock resources while maintaining transparency and state oversight, according to source material. The proposed mechanisms include special arrangements for railway industrial complex projects, management and maintenance of national railway infrastructure, construction of commercial and office buildings at stations, and investment credit incentives for the railway sector.

The investment preparation process for the railway industrial complex project involves consultation with domestic and foreign contractors, with VNR allowed to select the most suitable partners without bias. VNR will lead the execution of railway industrial services and goods, with its own capital invested enterprises tasked with carrying out repairs, renovations, upgrades, and functional enhancements on railway assets.

The draft also stipulates that VNR shall manage the construction of commercial service buildings and office spaces within railway stations. The Ministry of Finance proposes adding investment projects for the production, assembly, and procurement of railway locomotives, carriages, specialised vehicles, and machinery for railway infrastructure maintenance to the list of investment credit loan projects.

The draft is currently open for public comment on the Ministry of Finance's online portal. With the approval of the 2026-2030 restructuring plan, Vietnam Railways is set to transform into a group model, driving industry growth and attracting more investment. Vietnamese Deputy Minister of Construction Nguyen Tuong Van met with a French business delegation on May 7 to discuss railway investment opportunities, and new regulations are expected to simplify administrative procedures to support business and investment activities in the railway sector.