Vietnam $55.8B Express Railway Project: Capital Shortage Pressure
Vietnam will face a high pressure from capital shortage to carry out its planned $55.8-billion North-South express railway, said Ha Van Hien, chairman of the National Assembly’s Committee for Economic Affairs at a meeting April 17.
Vietnam needs $4.3 billion for the project each year, including $570 million from the state budget, $2.4 billion from foreign loans and $1.2 billion from other sources, Hien said at the meeting held by the National Assembly’s Standing Committee.
Hien wondered about the feasibility of the project’s capital mobilization as the country has to prioritize capital to many major infrastructure projects from now to 2020.
Ksor Phuoc, chairman of the NA Council of Nationalities, said the government should make a detailed report on the project’s capital return capacity, site clearance and the required number of laborers.
Vietnam is estimated to need roughly $100 billion for development investment annually, excluding investment for national defense, Phuoc said, emphasizing that the government should take a careful consideration for the $55.8-billion railway project.
Under the Ministry of Transport’s plan, work on the 1,570-km railway will be kicked off in 2012 as latest and is expected for full completion in 2035. (Young People)
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