Pilot mechanism to develop urban railways in Hanoi and Ho Chi Minh City

October 10, 2025 | 09:00
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Businesses and investors involved in urban railways in Hanoi and Ho Chi Minh City are expected to benefit from a new pilot mechanism.

A resolution issued by the government on October 9 requires authorities at all levels to clearly define tasks, roadmaps, resources, and responsibilities in the process of preparing, investing, and developing urban railways, while ensuring compliance with legal regulations, progress, quality, publicity, transparency, and prevention of loss and waste.

The implementation must closely follow the policies approved by the National Assembly, aiming to organise, manage, and effectively use investment capital for urban railway projects in Hanoi and Ho Chi Minh City.

Specific policies will be concretised in legal documents, creating a complete legal corridor to mobilise resources, as well as ensuring compliance with international treaties to which Vietnam is a member.

The Ministry of Construction (MoC) has been assigned to preside over the development of a decree regulating preparations for comprehensive technical designs (FEED) to replace the current basic design steps. This mechanism is expected to shorten procedures for large-scale projects with high technical and technological requirements.

In addition, the guiding documents will also regulate the development of science and technology, the training of railway workers, and the criteria for selecting domestic enterprises to participate in providing railway industrial goods and services. These regulations have been developed in line with plans for the North-South high-speed railway to ensure the unified development of the national railway industry.

At the local level, the people's councils of Hanoi and Ho Chi Minh City will issue specific resolutions on urban development following the model associated with Transit Oriented Development (TOD), and at the same time specify a mechanism for collecting, managing, and using revenue to develop urban railway infrastructure and connecting public transport systems.

The two cities are responsible for closely coordinating with ministries and agencies to implement these projects and ensure publicity and efficiency, while preventing policy exploitation.

Pilot mechanism to develop urban railways in Hanoi and Ho Chi Minh City
The Cat Linh-Ha Dong urban railway line. Photo: MoC

Hanoi and Ho Chi Minh City are empowered to issue separate resolutions on urban development associated with TOD, according to which the two cities can adjust the planning of areas surrounding railway stations and depots, and organise land auctions around metro lines to create capital for infrastructure investment.

The government requests ministers, heads of ministerial-level agencies, and people's committees of the two cities to focus on directing the implementation of assigned tasks, periodically report results to the MoC.

During the implementation process, if there are requests to adjust or supplement specific mechanisms, ministries, agencies, and localities can put forward proposals to the MoC, and report to the government or submit to the National Assembly for consideration.

The piloting of a mechanism for developing urban railway networks in Hanoi and Ho Chi Minh City is considered vital for in developing urban transport infrastructure, opening up opportunities to form a large, green, and sustainable mass transport network, and contributing to shaping the appearance of modern urban areas in Vietnam.

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