Chief of the Viet Nam Railway Department, Vu Xuan Hong, spoke with Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about plans to develop the urban railway system in Viet Nam.

What is your assessment of the urban railway system in Viet Nam?

Recently, Ha Noi and HCM City have been facing problems due to the rapid process of urbanisation occurring throughout the cities. These problems include traffic jams and pollution. They have also negatively affected the regional economy. When the urban railway system is constructed, it will play an important part in solving these problems as well as promoting the development of the economy. This will also attract more tourists to Viet Nam.

So it is necessary to construct the railway system in Ha Noi and HCM City.

Recently, the nation’s railway sector has planned to further develop railway systems in a plan that will be carried out until 2020. The Prime Minister has approved this plan. However, as economic conditions change, we need to continue perfecting the plan. We should also study the experiences of foreign countries, especially Japan, in developing their railway networks.

The Japanese have given us some suggestions on developing the urban railway system but we need time to examine them. Which suggestions are the most useful in our plans to develop the railway system in HCM City and Ha Noi?

We have exchanged views with the Japanese for more than one year.

Currently, the Japanese Government has helped Viet Nam to set up a plan to develop water transport in HCM City and Ha Noi.

At the time of setting up the plan, we have also shared our ideas with the Japanese representatives.

We have learned a great deal about planning from Japan. But the other problem we face is technology. Japan is an international centre for railway technology. After investigations, we found that we should apply their experiences in our country.

In the process of exchanging ideas, we found that the technological solution for the Vietnamese urban railway system is either an underground railway or elevated railway. For example, in Ha Noi, any expanded railway system could not avoid the traffic jams that already occur on the roads.

In rural areas, we can have a normal railway system but we need to ensure that safety barriers along railway tracks are taken into consideration.

The Japanese agree with our ideas.

Is it suitable to apply high-tech Japanese solutions that are so expensive?

Of course, a high-tech transport system can be used for a longer time and it will not be out-dated as soon as cheaper, older technology.

We have just investigated and compared the urban railway systems of other countries in ASEAN and Europe. The amount of money these countries have invested into their railway system is similar to our plans.

But more important is the quality and durability of the equipment that we can attain with that money.

The consultants must calculate this, before we make any decision.

When will Viet Nam have an urban railway system?

Recently we have officially begun construction on the first urban railway system. This is the Ben Thanh-Bien Hoa railway, whose total investment is more than US$ 700 million. This is derived from Japanese official development assistance.

Next month, Japan’s Bank for International Co-operation will send professors to Viet Nam to assess the feasibility of the plan.

As planned, we will start from Ben Thanh Market to Suoi Tien. In August, Japan will help us finish the assessment of the feasibility report. In September, the two sides will discuss compromises on the loan agreement.

We hope that the plan will be underway from 2007.

In 2011, we will have the first underground train system and evaluated train in HCM City.

Can private organisations take part in the plan?

We have studied the experience of Japan. The Japanese State will contribute 40 per cent of capital, the local city contributes 40 per cent and 20 per cent is lent from banks.

After that, members will meet to make commitment to refund Japan within 40 years.

The Railway Law, which was approved this year, regulates that: after the State or organisation builds the railway system, we will organise bidding to call for groups who will be involved with, and capitalise from, the construction and operation of the railway system. (VNS)

Source: http://vietnamnews.vnagency.com.vn/showarticle.php?num=01COM030406