Minister of Transport Ho Nghia Dung touched on important details surrounding the North-South Express railway project in an interview with DTiNews.

Minister of Transport Ho Nghia Dung: “All worries will be removed if the National Assembly gives a green light to the project” (Photo by Viet Hung)

The result of opinion polls regarding the express railway project showed that 192 of the National Assembly deputies surveyed were not in favour of the plan, what do you think about this?

This is really a big deal. It may bring risk and hidden challenges to the country’s economic potential and thus, it’s necessary to continue considering many relevant issues. The concerns among deputies and the general public are absolutely understandable.

As one of project developers, I cannot say it’s an easy decision. Feedback and opinions from deputies and the public have made me more cautious and analyse all possibilities if the National Assembly gives a nod to the project.

Has the government planned a schedule in case the project is approved by the National Assembly?

It’s impossible to talk about the schedule of the project at this moment because it was not included in the pre-feasibility study. It will have to be further researched.

Which part of the project will be prioritised?

The first priority is Nha Trang – Ho Chi Minh City part, followed by Hanoi – Vinh route. The Phan Thiet – Ho Chi Minh route, which is a part of Nha Trang – Ho Chi Minh City route, would be the first to be completed.

We would hope to complete construction of the first route in 2025 and it will be great if Nha Trang – Ho Chi Minh City route can be put in operation in the same year.

If the National Assembly adopts investment policy of the project, will Vietnam organise a tender for consulting the project feasibility study?

There are regulations on bidding for the project feasibility study according to Tender Laws; however it seems very difficult to conduct so Vietnam often chooses consultants. Tenders must be applied to technical designing and construction.

According to some experts, Official Development Assistance (ODA) funded projects have a 20% higher price tag than normal ones. What will be the approach to control the price?

I have no information about this conclusion, neither any evidence to address that. There must be domestic and international tenders for ODA projects.

Do ODA loans often bind with conditions for partners?

No, there is no condition for partners. For example, ODA STEP (which is a form of loans with special conditions for economic partners) must be bid by enterprises of the lending country. Bilateral ODA must be bid on internationally and choosing contractors is not allowed.

Minister of Planning & Investment, Vo Hong Phuc, said that Vietnam and Japan had ratified the railway project in principle. What can you say about this?

Yes, we did, but we have not come up with a detailed cooperation plan. During a visit to Japan in 2006, 3 projects were discussed. They are the South-North express railway, highway and Hoa Lac High Tech Zone.

However, we have not talked about Japanese commitments on technology, capital and contractors.

Does Vietnam have any commitment of carrying out the project?

No, there is nothing binding. It’s a commitment on cooperation.

If the project is implemented, will there be any opportunity for domestic enterprises?

Basic construction is a big chance for domestic contractors. Viaduct system construction is one of them. The system is similar to the one of Saigon – Trung Luong highway, which is nearly one of the most complicated viaducts in the world and Vietnamese contractors built it.

Vietnam is in serious shortage of power, whereas the express railway consumes a huge amount of electricty. Are you worried?

Industrialisation and modernisation increase the demand of energy consumption. Thus, Vietnam plans to develop the electricity industry and invest in Son La, Lai Chau hydropower plants and nuclear power plant with an aim of serving such large scale projects. In addition, the bullet train consumes less fuel in the context that fuel prices in the world are going up dramatically.

Thank you!