Minister of Construction Tran Hong Minh presented a revised draft of the Railway Law this morning, following the government's report on June 15 responding to feedback from the National Assembly Standing Committee. The revised draft includes all proposed adjustments and finalizes the law's content.

Incentives for railway industry investors

The updated draft comprises four chapters and 60 articles, eliminating 19 articles from the previous version. These removals streamline content already regulated by government or ministerial authorities and limit special policies to national railway projects or projects approved by the National Assembly.

The draft law introduces various incentives for businesses in the railway sector. These include land use fee exemptions, access to credit capital, and tax reductions - particularly for firms operating in disadvantaged areas or investing in railway infrastructure and industry.

Vietnamese organizations and individuals involved in railway projects will be exempt from import duties on goods that are not domestically produced or do not meet the required technical standards.

Seeking approval for special policies

Le Quang Huy, Chairman of the Science, Technology and Environment Committee, expressed strong support for the need for unique policies to advance Vietnam’s railway infrastructure. However, he emphasized that such policies must be clearly scoped, ensure transparency, and align with the broader legal system.

He supported transit-oriented development (TOD) - which focuses on leveraging land around stations to fund rail projects - but called for clearer regulations. These include limits on local authority powers in planning, independent oversight, infrastructure capacity standards, revenue-sharing mechanisms, and accountability.

Some committee members also praised streamlined investment procedures in the draft law, which empower local authorities. Still, they stressed the need to clarify central oversight, define local jurisdiction boundaries, and adjust related laws to prevent power misuse.

Huy also cautioned against early implementation dates, such as July 1, which may conflict with Vietnam's legislative rules and cause regulatory overlaps. He recommended revising the transition provisions and promptly issuing guiding regulations.

The draft law now incorporates 23 special mechanisms and policies - 21 adapted from National Assembly resolutions and 2 new ones: Article 24 on private investment in railway projects and Article 36 on contract regulations. These policies aim to decentralize authority, shorten procedures, accelerate project timelines, and attract private investors.

The Vinh