The high-speed railway project will shorten travel time between the center of Ho Chi Minh City (District 7) and Can Gio. Pictured is the Rung Sac route - Photo: CHAU TUAN

The Ho Chi Minh City Department of Finance is the unit assigned by the Ho Chi Minh City People's Committee to preside over and coordinate with relevant units to guide investors in implementing the procedures for preparing project proposal documents under the public-private partnership (PPP) method.

At the same time, organize the appraisal of the proposal of Vingroup Corporation on investing in a high-speed urban railway connecting the center with Can Gio district and advise the City People's Committee.

Advantages of investing in railway to Can Gio under PPP method

Regarding the advantages of the PPP method compared to other forms of investment, Vingroup Corporation emphasized that investment in this form has many advantages compared to traditional public investment when considering factors such as investment preparation costs, ability to attract capital, technology, investor management skills and project implementation ability.

Specifically, in the PPP model, investment preparation costs are often shared between the public and private sectors. Private investors will participate in the planning, design and evaluation of projects, helping to reduce the financial burden on the state. In addition, private participation can optimize costs thanks to experience and efficiency in management.

Meanwhile, in the case of public investment projects, the entire investment preparation cost is often the responsibility of the state, from feasibility studies, design to planning. This can increase the budget burden, especially in the context of limited public resources.

The PPP investment method will take advantage of capital from the private sector, including domestic and international capital, helping to reduce pressure on the budget. Private investors can mobilize capital through bank loans, bond issuance or equity capital, increasing flexibility in project financing.

In terms of technology, private investors often bring in advanced and modern technology to ensure the efficiency and profitability of the project. This is especially important in areas such as infrastructure, energy or healthcare, where technology plays a key role.

In terms of project implementation, private participation helps speed up project implementation thanks to profit incentives and effective management capabilities. PPP contracts often bind specific responsibilities, minimizing delays or budget overruns...

"From the above analysis, it can be seen that if the project is invested in the form of PPP, it will be superior to public investment in terms of diverse capital mobilization, application of modern technology, professional management and effective project implementation," Vingroup Corporation analyzed.

Will be responsible for arranging all capital to carry out the investment.

In this project, Vingroup Corporation proposed to apply the BOO (build-own-operate) contract form. Accordingly, Vingroup will be responsible for arranging all capital to carry out investment, construction, management and operation throughout the project's duration on the basis of ensuring compliance with legal regulations.

The project has a preliminary total investment of about 102,370 billion VND (equivalent to about 4.09 billion USD). The railway line is invested in a double-track scale, 1,435mm gauge, electrified with a main line length of about 48.5km, designed infrastructure with a speed of 250km/h, axle load of 17 tons/axle. Passenger transport capacity meets 30,000 - 40,000 people/direction per hour.

Regarding the investor's ability, Vingroup Corporation said that the enterprise was established in 1993 as a multi-industry corporation in the fields of technology - industry, trade - services, and social charity.

In terms of capital attraction skills and investor management skills, member companies of Vingroup Corporation such as Vinhomes Joint Stock Company, Vincom Retail Joint Stock Company... are always in the top priority investment portfolios of international investment funds in the Vietnamese market.

This shows that Vingroup Corporation is not only a leading domestic enterprise but also a prestigious enterprise and highly appreciated by international investors.

During its development, Vingroup Corporation has implemented many large-scale projects with large capital, some of which cost over VND 100,000 billion. At the same time, Vingroup has always been one of the corporations with the largest total assets, revenue and the largest contribution to the state budget.

"The Group wishes to contribute more to the country in general and Ho Chi Minh City in particular as well as to contribute to the completion of the city's transportation system. Investing in high-speed urban railways will create a boost, an explosion for tourism development, investment and more convenience for people and tourists by shortening travel time from the center to Can Gio", Vingroup said and hopes to be considered and approved to implement the project.

Proposal to add railway to Can Gio to the list of projects applying the mechanism of Resolution 188

In a report to the Prime Minister on April 21, the Ho Chi Minh City People's Committee said that the list of projects attached to Resolution 188 of the National Assembly on piloting a number of specific and special mechanisms and policies to develop urban railways in Ho Chi Minh City and Hanoi does not include the urban railway line connecting the center to Can Gio district.

Therefore, the City People's Committee proposed that the Prime Minister agree on the policy of adding this urban railway line to the project list attached to Resolution 188 to speed up the investment process.

At the same time, the City People's Committee is assigned to urgently coordinate with the Ministry of Construction to report to the Government for consideration and approval of the above proposal as soon as possible.

DUC PHU

Source: https://tuoitre.vn/vingroup-cam-ket-bo-tri-von-ap-dung-cong-nghe-tien-tien-lam-duong-sat-toc-do-cao-di-can-gio-202504231023044.htm