Railway Industry to Have Big Projects

The WEF Report was conducted in 140 countries, including Vietnam. In this report, Vietnam’s competitiveness index of transport infrastructure for the first time leaped nine ranks from the 76^th position to the 67^th position. Particularly, port quality index increased 12 ranks from the 88^th position in 2014 to the 76^th position in 2015 and aviation quality index climbed from the 87^th position in 2014 to the 75^th position in 2015. The road quality index jumped 11 places from position the 104^th position in 2014 to the 93^rd position in 2015.

 

These numbers are very encouraging when they are compared with other countries in the region such as China, Malaysia, Singapore and Indonesia. According to the report, in 2015, the rankings of China and Indonesia were unchanged from the previous year, Malaysia rose by a notch and Singapore even dropped one place.

 

However, in absolute terms, Vietnam is still at the lower average of the world. For example, our road index in 2015 climbed 11 spots to the 93^rd place on 140 countries. Therefore, with the current position, we must try to further improve our competitiveness index.

 

With central and comprehensive solutions on transport infrastructure development for the next five years adopted by the Ministry of Transport, we believe that our rankings will be further increased each year.

 

Railway is a very specific sector as investment must be made system-wide. Indeed, Vietnam’s railway industry is still using the narrow gauge - a pretty outdated technology but we still do not have enough means and resources to make upgrading investment as this sector requires enormous investment at the same time while the infrastructure investment socialisation of this industry is not high.

 

Thus, in the past five years, the railway sector has had no major changes, only focusing on upgrading weak bridges, improving signal information, reinforcing and repairing railway tunnels, and replacing old sleepers in order to improve safety and increase train speed. The sector also upgraded the Hanoi - Lao Cai railway route and operated a railway connecting to the Port of Cai Lan.

 

With its own characteristics, to improve efficiency and quality, the sector needs huge capital to make synchronous investment. For roads, we can build section by section and use it immediately each completed section but we must complete the entire railway route to use it.

 

In the Vietnam railway transport development plan to 2020, with a vision to 2050, created by the Ministry of Transport and approved by the Prime Minister, in the 2016- 2020 period, the Ministry of Transport will give priority to the railway industry. Accordingly, we will upgrade existing rail lines, especially the North-South arterial route, to achieve an average speed of 80 - 90 kph of passenger trains and 50 - 60 kph of cargo trains. Short routes like Hanoi - Hai Phong, Hanoi - Thai Nguyen, Hanoi - Lao Cai and Hanoi - Lang Son will be restored and upgraded capacity. We will speed up the progress of urban railways in Hanoi and Ho Chi Minh City; and study plans to build elevated high-speed North - South railway using 1,435-mm line and achieving a speed of 160- 200 kph. We will gradually prepare necessary conditions to build busy routes like Hanoi - Vinh and Ho Chi Minh City - Nha Trang.

 

Presently, Vietnam lacks the budget for transport development investment while the demand is growing. To do this, we need the involvement of the private sector. Particularly, the private sector usually provides better services than the State does.

 

Therefore, we look forward to sharing from the people in order to enjoy a better service and enhance quality of life.

 

This is not only an issue of the transport sector, but also of other industries where the involvement of the private sector as in hospitals or schools is very important. As at present, to seek medical assistance at hospital, people have to spend higher fee, but they do not have to wait and enjoy much better service quality.