Commencing the Laos Cai-Hanoi-Haiphong Railway Project in 2025

Compressing a 3-4 Year Project Preparation into 6 Months

At the Ministry of Transport’s monthly task deployment conference and key task briefing for December 2024, Mr. Luu Quang Thin, Deputy Director of the Planning and Investment Department, shared that based on the needs registered by investors/project management units, the Ministry has formulated a public investment plan for 2025 with a capital requirement of approximately VND 89,211 billion.

Mr. Thin emphasized, “2025 is of particular importance as it marks the final year of implementing the goals set by the 13th National Party Congress. We aim to put into operation nearly 1,000 kilometers of expressways and prepare for investing in several large-scale projects, including the high-speed railway and the railway connecting to China, within a very tight timeframe. This will be amidst changes in organizational structure and leadership.”

To accomplish the disbursement target for 2025, the Planning and Investment Department is working closely with investors and project management units to advise the Minister on allocating the 2025 plan for these projects before December 31, 2024.

The Department has instructed investors and project management units to formulate detailed monthly and quarterly disbursement plans, identifying critical paths for disbursement for each project. They are to report to the Ministry by January 31, 2025, providing a basis for management and performance evaluation.

Regarding the North-South high-speed railway, the Railway Project Management Board is expediting tasks related to selecting consulting contractors for the feasibility study report. Meanwhile, the Transport Development and Strategy Institute is finalizing the proposal for developing railway human resources and the railway industry.

The Laos-Hanoi-Hai Phong railway, with a total investment of about USD 8.37 billion, typically requires 3-4 years for investment preparation. However, the Central Committee and the Prime Minister have directed that construction must commence in 2025, presenting a significant challenge.

Thus, the Planning and Investment Department has requested that the Railway Project Management Board submit the pre-feasibility study report to the Ministry in December 2024 for feedback from relevant agencies. They are also coordinating procedures for establishing a State Appraisal Council, aiming to complete the appraisal of the pre-feasibility study report before February 28, 2025. The goal is to finalize the dossier for the Government to submit to the National Assembly before March 31, 2025, and for the National Assembly to approve the investment policy at its May 2025 session.

The Vietnam Railway Authority, in collaboration with the Railway Project Management Board, is working to perfect the investment proposal dossier for the project and send it to the Ministry in December 2024 for feedback from relevant agencies. They are striving to report to the Politburo in March 2025.

Planning to Disburse VND 87,000 Billion in 2025

According to the Planning and Investment Department’s report, as of the end of November 2024, the Ministry of Transport has disbursed approximately VND 52,750 billion, achieving 70% of the assigned plan. This is lower than the same period last year (75% disbursement in 2023). However, the Ministry is still maintaining a higher rate than the national average of 60.4%.

To meet the disbursement target of the allocated capital as directed by the Government and the Prime Minister (a minimum of 95%), the Ministry needs to disburse about VND 23,000 billion in the remaining two months.

Mr. Luu Quang Thin acknowledged, “This is a significant challenge and requires the dedication and determination of investors and project management units, along with close supervision and monitoring from the Ministry’s agencies.”

At the conference, Minister of Transport Tran Hong Minh instructed that regarding the North-South high-speed railway, which has been approved in principle by the National Assembly, this project entails a substantial workload and a large number of sub-projects. The Minister requested that units must focus even more on executing tasks in December 2024 and early 2025.

“We must work not only during the day but also at night. In addition to promptly finalizing the procedures for selecting consultants for the feasibility study, we should also consider strengthening the resources and capabilities of the project management unit following the upcoming merger and streamlining of the Ministry’s apparatus. To ensure progress and quality, we can learn from the experiences of developed countries with strong high-speed railway systems regarding management and implementation methods. We can explore establishing a chief engineer or chief architect position,” Minister Minh directed.

The head of the transport sector instructed the specialized management agencies to work closely with investors and contractors to find solutions to shorten the time for soil loading at the Can Tho – Ca Mau section of the project. He emphasized that shortening the schedule must go hand in hand with ensuring quality. He also urged addressing obstacles in site clearance for projects such as Bien Hoa – Vung Tau and Khanh Hoa – Buon Ma Thuot.

Regarding the Long Thanh International Airport project, the Minister assessed that the progress of component projects 3 and 4 has not met requirements. He suggested establishing a task force to coordinate and resolve difficulties. The Vice Minister in charge should regularly inspect and urge progress, with the spirit of resolving issues on the spot. The Minister emphasized the goal of completing the entire project synchronously by December 31, 2025.

The Minister also reminded units to actively coordinate with relevant agencies and investors to expedite important connecting infrastructure projects, such as the expansion of the Ho Chi Minh City – Long Thanh expressway section and the Trung Luong – My Thuan expressway under the PPP format. He also mentioned projects that have stopped or slowed down, such as Hanoi – Yen Vien – Pha Lai – Cai Lan.

Emphasizing the need to commence the Laos-Hanoi-Hai Phong railway in 2025 as directed, Minister Tran Hong Minh requested that relevant units clarify the contents related to the investment in this project. This will serve as a basis for the Ministry’s leadership to work with partners and promote the implementation process.

For projects in the investment preparation phase, the Ministry is determined to expedite procedures to start construction as planned and disburse the allocated capital, especially for projects using surplus revenue from 2022 with urgent timelines and substantial capital allocations for 2024. These include the Cam Ly Bridge and Tunnel on National Highway 1 (Railway Project Management Board), the Cho Moi-Bac Kan Expressway (Project Management Unit 2), and the connecting road between Noi Bai-Lao Cai Expressway and Tuyen Quang-Phu Tho (Phu Tho Department of Transport).

Additionally, the Ministry is proceeding with investment preparation for other critical projects and coordinating to address issues with projects that have stopped or slowed down to prevent waste.