HCMC – The National Assembly has officially approved private investment in the North-South high-speed railway project, marking a significant policy shift that opens the door for broader private sector participation in national infrastructure development.
On June 27, 433 lawmakers present voted in favor of a resolution at the ninth sitting of the 15th National Assembly, endorsing the Government’s proposal to supplement public investment with private capital under the existing legal framework.
The resolution allows the project to adopt investment models under the Law on Public-Private Partnership (PPP) and the Law on Investment, alongside traditional public funding. The Government will be responsible for selecting appropriate investment models and investors in line with legal regulations. Any mechanisms or policies exceeding government authority will require further approval from the National Assembly.
The North-South high-speed rail line had previously been approved as a public investment project under Resolution 172 passed on November 30, 2024. However, following the recent adoption of Resolution 68 on promoting private sector breakthroughs, several investors have expressed interest in participating through direct private investment or PPP arrangements.
The Government said that the legal, political, and practical conditions now support the inclusion of private capital in the project. Resolution 68 by the Politburo specifically encourages expanding private sector involvement in major national projects, including high-speed and urban rail systems.
At a Politburo meeting on June 20, a consensus was reached on allowing alternative forms of investment for the project. The Politburo instructed the Party Committee of the Government to coordinate with the Party Committee of the National Assembly in submitting the proposal to the legislature for approval.
Under Clause 2, Article 37 of the Law on Public Investment, adding new investment formats does not require a formal adjustment of the investment policy. However, since the change deviates from Resolution 172/2024/QH15, the Government submitted the updated proposal to the National Assembly for consideration.
The North-South high-speed rail project is considered one of Vietnam’s most ambitious infrastructure ventures, with the potential to transform the country’s transport landscape. The inclusion of private investors is expected to enhance funding options and accelerate implementation.
