VIETNAM’s National Assembly passed an amended Railway Law on June 27. The new legislation introduces a range of incentives to encourage private businesses to invest in the railway sector.
According to the Vietnam News Agency, under the revised law, companies and individuals involved in railway business activities will be eligible for exemptions or reductions in land use fees and land rental for areas designated for railway use.
They will also have access to state investment credit or government-guaranteed loans when investing in national or local railway infrastructure. Companies investing in rail-related development or infrastructure management will also enjoy preferential corporate income tax rates.
To address difficulties in amending major national railway projects, the revised law allows projects to be approved and modified, even if discrepancies exist with related plans, without requiring formal changes to other affected plans. Instead, those plans must be promptly updated and published.
The law emphasises core management principles such as safety, separation of operational and financial functions, and fair competition. It also clarifies eligibility for incentives and adds mechanisms for National Assembly oversight.
The government says that it will prioritise budget allocations for the development, upgrade and maintenance of railway infrastructure, as well as for the growth of the rail sector.
