Vietnam National Assembly approves Hanoi-HCMC High-Speed Rail, opinions mixed

Vietnam’s National Assembly has passed a resolution clearing the way for a proposed high-speed rail project between Hanoi and Ho Chi Minh City to move forward. The next step will be a feasibility study.

There are a few key details that are noteworthy here:

1. The project will require the resettlement of an estimated 120,836 people. Historically, with big infrastructure projects land acquisitions have been a key obstacle with officials reluctant to exercise eminent domain instead preferring to negotiate an outcome with landowners which can often be a lengthy process.
2. Provinces will be allowed to adjust mining licences for key construction materials for the project without following standard procedures. This includes removing environmental impact report assessment requirements.
3. Any work performed by a foreign entity must include technology transfers to local entities as well as training for local workers. This may be off-putting for some foreign bidders if proprietary technology is involved.
4. Funding–the project is expected to cost about US$67 billion–is expected to be a combination of government bonds, overseas development assistance, and loans. Of note, there has been a push to try and keep funding in-house, however, given the size of the project and funding required this would be challenging.

Of note, the response to the passing of this new project has not been without some concern.

BBC Vietnamese, for example, has comments from Tran Quoc Viet, Chairman of the Board of Directors of Region 1 Railway Services Joint Stock Company, who essentially suggests it is all moving very fast and points out there is a dearth of high-speed rail expertise in Vietnam to properly assess the project. On that note, Radio Free Asia points out that the pre-feasibility study for the project was conducted by a consortium of local firms.

Both publications incidentally outline a number of key concerns from several experts that suggest that not everyone might be entirely on board with this project (though the domestic press suggests otherwise).

See also: Paying For Vietnam’s High-Speed Rail: Unpacked