HÀ NỘI During the 8th session, the 15th National Assembly will discuss the investment proposal for the North-South high-speed railway project. Speaking with Giao Thông (Transport) newspaper, many National Assembly members expressed strong support, while also offering additional insights and suggestions regarding certain aspects of the project’s implementation.

Trần Hoàng Ngân, Member of the Economic Committee from Hồ Chí Minh City delegation. Photo baogiaothong.vn

Trần Hoàng Ngân (Member of the Economic Committee, Hồ Chí Minh City delegation): The right time to invest

This is not the first time we have presented the North-South high-speed railway project. People have long dreamed of the possibility of having 'breakfast in Hồ Chí Minh City and work in Hà Nội in the afternoon'. Previously, we hesitated due to financial constraints. Now, we have the resources and a strong foundation and the project enjoys considerable public support from citizens and voters.

Regarding funding, we needn’t worry, as public debt (approximately 37 per cent of GDP) is well within safe limits, allowing us to mobilise substantial resources for this investment.

My primary concern is safety, which should take precedence over economic efficiency. We need to build a high-speed rail system with the highest safety standards, even if it incurs higher costs. Moreover, our country frequently faces natural disasters like storms and floods, which must be factored into planning.

Connecting regions will stimulate development in previously untapped areas, creating substantial new resources to sustain the high-speed railway beyond just ticket revenue. The TOD (Transit-Oriented Development) model at station locations is expected to yield significant real estate revenue. Many countries make profits from TOD zones rather than ticket sales alone.

To fund the project, we should consider government bonds. It’s essential to avoid spreading investment too thin and ensure each completed section is fully operational, with TOD stations connected to urban areas by bus and rail services.

Trần Văn Lâm, Standing Member of the Finance-Budget Committee of Bắc Giang Province delegation. Photo baogiaothong.vn

Trần Văn Lâm (Standing Member of the Finance-Budget Committee, Bắc Giang Province delegation): Current public investment is appropriate

Public investment can fully accommodate the North-South high-speed railway project. With the proposed 12-year construction and an estimated cost of US$67 billion, we’d require about $5.6 billion annually. While this constitutes a significant proportion of the public investment budget, it is feasible.

In the next decade, Việt Nam is expected to enter a new growth cycle, which will enhance the effectiveness of public investments. We also have other priority infrastructure projects, but government resources have been well-managed, with considerable public debt room available without exceeding thresholds set by the National Assembly.

When investing in a project, the main concern is effectiveness. This railway project is anticipated to benefit the economy substantially, so there’s no issue in borrowing for investment.

On the management side, we’ve recently completed numerous major projects rapidly and successfully, so we are fully capable of executing this one.

The TOD approach has significant potential, especially if we effectively utilise land surrounding the project to mobilise up to half the required capital. However, we shouldn’t rely solely on TOD for financing due to uncertainties like real estate fluctuations.

For localities, the presence of this railway opens vast opportunities for investment and development. To take advantage, each locality must develop comprehensive plans tailored to their unique strengths. This is something only local governments can prepare effectively.

Trần Kim Yến of Hồ Chí Minh City delegation, Head of the Inspection Committee of Hồ Chí Minh City’s Party Committee. Photo baogiaothong.vn

Trần Kim Yến (Hồ Chí Minh City delegation, Head of the Inspection Committee of Hồ Chí Minh City’s Party Committee): Land clearance must be properly addressed

The benefits of the North-South high-speed railway project are beyond question and I am fully supportive. However, ensuring timely implementation and maximising the project’s potential requires thorough consideration.

In this session, the National Assembly will determine the project’s viability. From the time the proposal is approved, it will likely take two years before construction begins, giving localities time to revise and update their development plans.

Land clearance remains the primary bottleneck for major transportation projects. Even with sufficient funding, resources and personnel, projects face challenges without available land. In my observation, most localities compensate for cleared land at market rates, but local residents may still feel disadvantaged.

People being relocated often face changes in their living conditions. Why not compensate them above market rates to account for their relocation and the benefits they will not directly enjoy from the project? This could expedite land clearance significantly.

Hồ Chí Minh City is already involved in multiple major transportation projects and has had success with efficient land clearance. I am hopeful the city can bring its expertise to bear on the North-South high-speed railway project. VNS

On November 13, the Minister of Transport, authorised by the Prime Minister, will present the proposal for investment in the North-South high-speed railway project. Following this, National Assembly deputies will discuss it in groups.The project will be discussed on November 20 in the main assembly hall, where the Minister of Transport will clarify specific questions raised by members.The resolution on the investment proposal for the North-South high-speed railway project will be put to a vote on November 30.