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

3-4 Years of Preparation, Condensed to 6 Months

At the Ministry of Transport’s monthly task deployment conference for November and key tasks 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.

“The year 2025 holds special significance as the final year to accomplish the goals set by the 13th National Party Congress. It is crucial to commission nearly 1,000 kilometers of expressways and prepare for the investment in several large-scale projects with very tight deadlines (high-speed railway projects and the China-connecting railway line) amidst impending changes in organizational structure and personnel,” said Mr. Thin.

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

The Planning and Investment Department instructs investors/project management units to formulate detailed monthly and quarterly disbursement plans, identify critical paths for disbursement for each project, and report to the Ministry before January 31, 2025, to serve as a basis for management and performance evaluation.

Regarding the North-South high-speed railway, the Railway Project Management Board should promptly initiate tasks related to selecting consulting contractors for the feasibility study report. The Institute of Strategy and Transportation Development is tasked with finalizing the proposal for developing railway human resources and the railway industry development proposal.

The Lao Cai-Hanoi-Haiphong railway line, with a total investment of approximately USD 8.37 billion, typically requires 3-4 years for investment preparation. However, the Central Committee and the Prime Minister have directed that the project be commenced in 2025, presenting an enormous challenge.

Therefore, the Planning and Investment Department requests that the Railway Project Management Board submit the pre-feasibility study report to the Ministry in December 2024 to gather feedback from relevant agencies. They should also coordinate in implementing procedures for establishing the State Appraisal Council and complete the appraisal of the pre-feasibility study report before February 28, 2025. Furthermore, they need 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 the May 2025 session.

The Vietnam Railway Authority, in collaboration with the Railway Project Management Board, should refine the proposal for the investment policy of the project and submit it to the Ministry in December 2024 to gather feedback from relevant agencies. They should strive 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, slightly lower than the same period last year (75% in 2023). Up to this point, the Ministry has maintained a higher disbursement rate than the national average (60.4%).

To accomplish 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 approximately VND 23,000 billion in the remaining two months.

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

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 further concentrate their efforts on fulfilling the tasks for December and the beginning of 2025.

“We must dedicate not only our days but also our nights to this project. In addition to promptly finalizing the procedures for selecting consultants for the feasibility study report, it is necessary to consider enhancing 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 should also learn from the experiences of developed countries with robust high-speed railway systems regarding management and implementation methods. We can explore establishing a chief engineer or architect position to oversee the entire project,” Minister Minh directed.

The Minister also instructed the specialized management agencies to actively collaborate with investors and contractors to find solutions for shortening the time required for soil consolidation at the Can Tho – Ca Mau section of the project. While expediting progress, it is imperative to maintain quality. He also emphasized addressing land clearance challenges in several projects, including Bien Hoa – Vung Tau and Khanh Hoa – Buon Ma Thuot.

“Regarding the Long Thanh International Airport project, as the progress of Component 3 and Component 4 does not meet the requirements, the Minister suggested establishing a task force to coordinate and resolve difficulties. The Vice Minister in charge should regularly inspect and supervise the progress, with the spirit of resolving any issues that can be addressed on-site. We strive to complete the entire project synchronously by December 31, 2025,” the Minister instructed.

The Minister also reminded the units to actively coordinate with relevant agencies and investors to initiate critical connectivity infrastructure projects promptly, such as the expansion of the Ho Chi Minh City – Long Thanh expressway section, the Trung Luong – My Thuan expressway under the PPP model, and projects with slow progress like Hanoi – Yen Vien – Pha Lai – Cai Lan.

Emphasizing the need to commence the Lao Cai – Hanoi – Haiphong railway project in 2025 as directed, Minister Tran Hong Minh requested that the relevant unit 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 project’s implementation.

For projects in the investment preparation phase, the Ministry of Transport is determined to expedite the procedures, ensuring the timely commencement of projects as planned and the disbursement of allocated capital, especially for projects utilizing surplus revenue from 2022 with urgent timelines and substantial capital allocations for 2024, such as Cam Ly Bridge, tunnels on National Highway 1 (Railway Project Management Board), the Cho Moi-Bac Kan expressway (Project Management Unit 2), and the connection between Noi Bai-Lao Cai expressway and Tuyen Quang-Phu Tho (Phu Tho Department of Transport).

Additionally, the Ministry of Transport is proceeding with investment preparation for other vital projects and coordinating to address issues with projects that have been halted or delayed to prevent waste.