HCMC – The Government should prioritize domestic firms in railway development projects to grow the local railway industry, said Hoang Van Cuong, a National Assembly (NA) deputy from Hanoi City.
“Once the Government places orders with domestic companies, initial costs may be higher than purchasing from international suppliers. However, that investment will contribute to domestic economic growth. If we import foreign technology, the investment capital would flow abroad, while we still do not have the technology to develop our own railway industry,” the Government news site (baochinhphu.vn) quoted Cuong as saying.
Cuong made his remarks during an NA session on February 15, where lawmakers reviewed investment plans for the Lao Cai-Hanoi-Haiphong railway and a draft resolution introducing special mechanisms for urban railway networks in Hanoi and HCMC.
Lawmakers agreed on the significance of the Lao Cai-Hanoi-Haiphong railway, calling it a key economic project. The resolution on urban railways also received broad support, with deputies stressing the need to remove regulatory obstacles delaying progress.
Cuong highlighted the strategic importance of the Lao Cai-Hanoi-Haiphong corridor, which ranks second in freight volume after the North-South economic corridor. He emphasized that the project could significantly enhance Vietnam’s transport links with China.
He also called for Government guarantees on market share for domestic firms, warning that without such assurances, businesses would be reluctant to invest in technology. He pointed to the struggles of Vietnam’s auto industry, which continues to rely on imported components.
For areas where Vietnam lacks expertise, such as locomotive production and signaling systems, Cuong suggested requiring international contractors to transfer technology to local firms.
