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Opportunities for Vietnamese enterprises

Talking with Lao Dong Newspaper, Dr. Ta Dinh Hoa (Academy of Finance) said that Vietnamese enterprises are facing great opportunities when a series of high-speed railway and urban railway projects are implemented. From a financial perspective, each project has an investment capital of several billion to several tens of billions of USD. The North-South high-speed railway project alone has reached 67 billion USD and is entirely self-financed by Vietnam. Therefore, it is necessary to prioritize the participation of domestic enterprises.

“In terms of resources, many Vietnamese enterprises are currently not inferior to enterprises in the region. Therefore, it is necessary to proactively coordinate with State agencies to participate in the project. Instead of depending on foreign technology, domestic enterprises should boldly research and master some technologies, aiming for sustainable development” - Dr. Ta Dinh Hoa shared.

Mr. Tran Thien Canh - Director of Vietnam Railways Department - said that by 2030, the demand for railway materials will be very large, with nearly 30 million meters of rail, tens of millions of sleepers and thousands of locomotives and carriages. This is a potential market for domestic enterprises if they have enough capacity, technology and resources to participate. This opportunity not only brings economic benefits but also helps Vietnam gradually become self-sufficient in technology, reducing dependence on foreign contractors.

The Government also identified the period 2025 - 2035 as the "decade of railway development", with the goal of completely mastering the survey, design and construction of railways with speeds under 160km/h and urban railways by 2030. This will be the foundation for domestic enterprises to access and master modern technology.

Boldly giving opportunities

Although the opportunities are huge, Vietnamese enterprises also face many challenges, especially in terms of competitiveness and technology mastery.

According to Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, the ability to construct infrastructure of domestic enterprises has been proven through previous expressway projects.

Therefore, enterprises propose that the Government should clearly divide the North-South high-speed railway project into two parts: infrastructure and core technology such as locomotives, carriages, signaling systems, etc. The infrastructure part can be effectively implemented by domestic contractors if the bidding packages are divided reasonably, not exceeding their financial and management capacity (about 1 billion USD per package).

According to the Bidding Management Department (Ministry of Finance), the State needs to have a special mechanism to promote technology transfer from international contractors to Vietnamese enterprises. The new Draft Law on Bidding is developing regulations that prioritize domestic contractors and require technology transfer when forming joint ventures with foreign contractors - a key factor in narrowing the technology gap.

Domestic enterprises also emphasize the role of association, avoiding unfair competition.

Mr. Nguyen Quoc Hiep proposed building a culture of cooperation, in which large enterprises support small enterprises, forming a strong construction force capable of undertaking high-speed railway projects.

To support domestic enterprises, representatives of large corporations such as Viettel, Hoa Phat, Thaco proposed that the Government issue additional incentive mechanisms such as tax reduction, credit incentives, and designated contractors in some special cases. At the same time, it is necessary to soon invest in building a system of international standard laboratories to test materials domestically, instead of having to send them abroad as is currently the case.

Obviously, developing high-speed railways is not only an economic opportunity but also a matter of mastering technology, management and operation. In order not to lose at home, both the State and enterprises need to take drastic action, build appropriate mechanisms, give clear priorities and provide substantial support to domestic contractors. This is the key for Vietnam to master high-speed railway projects, affirming its new position in the transport industry.