$670 mln national railway industry complex proposed to build in Hanoi

The Vietnam Railways Corporation (VNR) has submitted a proposal to the Ministry of Finance to consider an investment policy for a project to build a national railway industry complex.

According to the proposal, the project will cover 250 hectares at Phu Xuyen and Ung Hoa outlying districts of Hanoi.

Total investment capital is estimated at over VND17.5 trillion ($670 million). Of which, public capital will be invested in building a railway route connecting with the national rail network, technical infrastructure, a Research and Development center and other State-support components.

The complex targets domestic production and to gradually localize hardware and software components related to signaling, communications, and power systems. It is also expected to gradually master the operation and maintenance processes, and manufacture some selected components and spare parts for high-speed rail. It will also receive and localize technologies in producing locomotives and railcars for national and urban railway networks.

If approved, construction of the first phase of the project is expected for completion by 2029. The complex’s projected revenues from 2030 to 2050 are estimated at over VND228.1 trillion ($8.73 billion), with average annual profits of around VND1.141 trillion ($43.7 million).