Vietnam and EU seek to strengthen ties in transport infrastructure and urban development

Vietnamese Deputy Minister of Construction Bui Xuan Dung on March 24 held a meeting in Hanoi with Jozef Síkela, European Commissioner for International Partnerships, to discuss cooperation programmes in the fields of transport infrastructure and sustainable urban development.

The event was attended by EIB vice president, Nicola Beer, Julien Guerrier, Ambassador of the EU to Vietnam, and representatives of Vietnam’s Ministry of Construction, and European businesses.

Photo: the Ministry of Construction

Jozef Síkela said that currently, the EU was particularly interested in Vietnam's sustainable transport infrastructure development, including the North-South high-speed railway project, the green transition in the transport sector, sustainable urban development, as well as the potential for implementing EU technical and financial support programmes.

According to Síkela, the EU plans to launch the Vietnam Transport Facility (VTF) with a grant of EUR40 million to support the preparation of transport infrastructure projects in Vietnam, particularly in the areas of railways, urban transport, and waterway transport, contributing to creating a foundation for mobilising additional concessional loans from European financial institutions.

Síkela added that the EU was always ready to support and facilitate Vietnam in the process of adopting, refining, and applying advanced European standards to modernise Vietnam's railway sector.

In response, Deputy Minister Dung said he appreciated the effective support of the EU in construction, urban planning, technical infrastructure development, public transport, and emission reduction in the transport sector in Vietnam.

He added that the Ministry of Construction was encouraging international cooperation to access advanced technologies and modern technical standards to serve the implementation of large-scale railway projects.

The North-South high-speed railway project has an estimated total investment of approximately $67 billion and is currently undergoing investment preparation steps in accordance with regulations.

During this process, the Ministry of Construction is paying particular attention to selecting appropriate technology, mobilising diverse international financial resources, and training high-quality workers to serve the construction, and operation of the project.

Photo: the Ministry of Construction

“Currently, Vietnam is implementing energy transition solutions in transport in accordance with international commitments on reducing greenhouse gas emissions. The system of policies is also being perfected to encourage the development of electric and green energy vehicles, while encouraging the development of infrastructure serving green transportation,” Deputy Minister Dung said.

Vietnam has issued many important guidelines and policies to encourage sustainable urban development. However, it is still necessary to strengthen management capacity, improve technical infrastructure, and mobilise resources to enhance the quality of urbanisation towards a green, smart, and climate-resilient direction.

Besides exchanging and sharing content of interest to Commissioner Síkela and the EU Delegation in Vietnam, Deputy Minister Dung proposed several directions for cooperation between the two sides, focusing on strengthening delegation exchanges, sharing experiences in developing railway technical standards, training human resources, and providing technical support in multiple areas.

Infrastructure boom drives real estate market growth The remarkable development in transport infrastructure is driving the takeoff of the real estate market in Vietnam. On April 19 alone, a raft of key undertakings were kicked off across the country.

PM Chinh demands full public investment disbursement for 2025 All ministries, sectors, and localities have been directed to achieve full disbursement of public investment funds this year, exceeding the previous 95 per cent target, in line with Prime Minister Phạm Minh Chinh's mandate.

Infrastructure undertakings unlocked via private funding More private enterprises are eager to participate in the nation’s crucial transport infrastructure projects, helping to push such undertakings forward and help the state save money.

Transport infrastructure in process of synchronisation The synchronisation and completion of the connecting infrastructure system are expected to enhance the attractiveness of the investment environment in Vietnam.