Hanoi (VNA) - The North-South express railway project will create a significant opportunity for Vietnam's mechanical and construction industries to advance in technology.
With an estimated investment of 67.3 billion USD, the project opens up enormous opportunities for railway mechanical businesses and construction contractors, helping them master industrial construction.
Deputy Minister of Transport Nguyen Danh Huy highlights that the high-speed rail project will create a construction market valued at nearly 34 billion USD, and the overall railway system, including urban railways, will generate a market worth 75.6 billion USD.
It will also require equipment and vehicles worth 34.1 billion USD and create millions of jobs. The project will help Vietnam's mechanical industry take a major leap forward in mastering production and technology for railway systems.
The Ministry of Transport has proposed technology transfer as a mandatory requirement in the project. By 2045, the aim is to localise railway construction, assembly, and gradually increase domestic production of parts and components for high-speed trains and urban railways.
The ministry's pre-feasibility study recommends policies to support railway industry development. These include providing land and tax incentives, supporting investment and imports, and ensuring that contractors commit to technology transfer. Furthermore, domestic products and services should be maximised in the project.
Dang Sy Manh, Chairman of the Vietnam Railways (VNR), noted that developing the railway industry is essential not only for the North-South project but also for others such as the urban rail systems in Ho Chi Minh City and Hanoi. These two systems are planned to be implemented by 2035. The VNR has achieved about 70-80% self-sufficiency in assembling and manufacturing equipment domestically. However, for specialised products, particularly long-lasting items, imports remain necessary.
The VNR has been working closely with foreign partners from leading industrial railway countries, learning and seeking joint ventures with Vietnamese railway businesses.
For the high-speed rail project, the VNR has requested the Government to provide preferential policies, such as loans, land, and corporate taxes. It also proposed placing government orders with the VNR during the early stages of the project to help assess the market and build partnerships with foreign and domestic companies.
With the urgent need to invest in the North-South express railway, domestic companies are exploring ways to contribute to the project’s infrastructure. Over recent years, major corporations have participated in large-scale transport projects, such as the North-South expressway, investing in advanced machinery and equipment for tunneling and bridge construction.
Deputy Minister Huy mentioned that Vietnam already has a capable workforce for constructing transport infrastructure, citing examples such as the My Thuan 2 cable-stayed bridge, which was fully designed and constructed by Vietnamese engineers. Leading companies like Son Hai, Song Da, and Deo Ca have mastered tunnel construction.
Ngo Truong Nam, CEO of Deo Ca Group, emphasised that after 2025, the workforce and machinery from companies working on the expressway will need new projects.
He urged the Government to create opportunities for these enterprises to participate in the North-South express rail project. Nam proposed dividing the project into two components: domestic firms could handle infrastructure like bridges, roads, and tunnels, while international partnerships could focus on technical aspects such as locomotives, cars, and signaling systems.
This approach would ensure the continued engagement of local businesses in major infrastructure projects and boost the development of Vietnam’s railway industry and supporting industries, he said./.
