- June 4, 2019
- Posted by: ICHAM ORG
- Category: Economics
Dear Members and Friends,
We are happy to announce that our Chairman, Michele D’ercole, met the press office of the Ministry of Planning and Investment (MPI) during the ASEAN Rail – Infrastructure and Expansion 2019.
As our chairman said, Vietnam officially approved the revised Railway Law which supplements many preferential and breakthrough mechanism and policies. The new law, which came into force in July 2018, prescribes railway infrastructure planning, investment, construction, protection management, maintenance and development with many new provisions compared to the Railway Law enacted 13 years ago.
For example, under the law new, businesses that specialise in trading in railway infrastructure and metro lines will also enjoy corporate income tax incentives in line with current rules. Additionally, individual and units investing in developing the national railway infrastructure and metro lines will have all site clearance costs covered by the state.
This is the opportunity for Vietnam Railways to open a new period of construction and development, so that the railway sector can play its rightful role as the backbone of transport sector, contributing to the reduction of logistics expenses and enhancement of national competitiveness.
In this context, the reorganidation of the railway sector opens up opportunities for the private sector to invest and improve efficiency in the provision of rail transport services. Such as efforts aim at developing the network, increasing the market share of railway transport, improving safety and efficiency, following high level organisational and technical standards and promoting local manufacturing so that the railway industry can significantly contribute to the nation development.
Actually, Italian companies in Vietnam are involved in different projects and also underline the strong partnership between Italy and Vietnam. Our companies actually continue to ponder expectations and attention to metro projects, especially in the form of ADB funding, since no one still intends to use public-private partnership (PPPs) in dead that do now provide sufficient guarantees. We are talking about subway projects no.2 and 5 in Ho Chi Minh City and line 2 and extension of line 3 in Hanoi.
Notably, the memorandum of understanding signed between Italy and Vietnam in 2016 emphasises on the bilateral cooperation for the implementation of projects and encourages the involvement and investment of Italian private companies in PPP in the fields of infrastructure and transport (road, rail, air and maritime transport, airports and logistics).
To see the whole article of the press office of the Ministry of Planning and Investment (MPI), please, check here