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The Capital Law to help develop Hanoi's railway system

Invest Global 10:06 09/12/2024

The Capital Law, which will take effect in January, offers preferential mechanisms to develop an urban railway system.

The Capital Law, set to take effect in January, permits investment in the development of Hanoi's urban railway system, prioritising the Transit-Oriented Development (TOD) model to ensure modernity, compatibility and sustainability.

The Capital Law to help develop Hanoi's railway system The Capital Law offers preferential mechanisms to develop an urban railway system

Within the areas where the TOD model is applied, the city may collect and use certain revenues for reinvestment in urban railways, public transport systems, and technical infrastructure connected to the mass transit network.

Hanoi People's Committee plans to build 550km of urban railway by 2045, having completed 96.8km of the network by 2030. Under Hanoi’s master plan with a vision for 2065, the capital will add five more urban railway lines with a length of 200 km. In the immediate future, Hanoi will complete more than 10 urban railway lines with a length of 410km by 2035.

Preliminary investment capital is about $55.4 billion, of which the period up to 2030 is about $16.2 billion; the period up to 2035 is just under $21 billion; the period up to 2045 is about $18.3 billion.

The target is deliberately challenging because, after many years of investment, Hanoi has just the 13km Cat Linh-Ha Dong urban railway line and the 8.5km elevated section of the Nhon-Hanoi Railway Station line in operation.

Meanwhile, the Nam Thang Long-Thuong Dinh urban railway line was approved for investment in 2008, but construction has not yet been implemented and is still in the process of requesting the government to adjust the investment planning.

Director of the Department of Transport Nguyen Phi Thuong, said, "The implementation of urban railway projects in recent times has shown many shortcomings such as slow progress and rising costs. On the other hand, current urban railway routes still lack cohesion with the restructuring of urban space and lack connectivity and connection with the transport system itself. The difficulty in accessing stations also significantly reduces the efficiency of this type of transport."

"Many problems will be resolved with the breakthrough policies of the 2024 Capital Law, and it will allow for easier development of Hanoi's urban railway system," said Vice Chairman of Hanoi People’s Committee Duong Duc Tuan.

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