Vietnam Lawmakers Ask for Further Details on US$56B Railway Project

The Vietnamese National Assembly (NA) has asked the government to submit a more detailed report on a US$55.8-billion express railway project, state media cited NA’s Vice Chairman Nguyen Duc Kien.

The NA has not yet made the final decision on the controversial project, Kien said, adding that the government must seriously consider the opinions of the NA and other agencies to make a more specific report for another discussion of lawmakers scheduled on June 8.

“The report must show exactly how the capital will be mobilized and how much the authorities will spend on the project per year,” the vice chairman noted.

The government is also asked to specify different parts of the project, Kien said, noting that it comprises at least four elements namely rail roads, trains, stations and people’s resettlement.

Many local scientists and economists have urged members of the NA to reject the railway project for its “infeasible” financial projection, saying that the country will have to spend over US$2 billion of official development assistance (ODA) on the project annually, while the possibility of paying the debt is unclear.

Meanwhile, many senior officials including Minister of Finance Vu Van Ninh, said it is necessary to carry out such projects as infrastructure is among Vietnam’s bottlenecks in attracting foreign investment.

Ninh emphasized the importance of using the loans effectively and ensuring national financial security, noting that the country’s foreign loans are at a safe level.

Tags: Vietnam Infrastructure, Vietnam railway project, Vietnam transport