The proposals appear in a draft resolution of the Hanoi People’s Council on piloting special mechanisms and policies for investment in the capital’s key railway projects. The draft is open for public comment.

Under the proposal, strategic contractors would be selected from promising domestic firms. They must commit to undertaking key railway projects in the national interest and for the benefit of Hanoi’s residents and development.

Contractors would be required to remain involved throughout the work covered by their signed turnkey, engineering-procurement-construction (EPC), engineering-construction (EC) or engineering-procurement (EP) contracts with project owners, fulfilling all obligations until their contractual responsibilities are complete.

Notably, strategic contractors would not undergo the assessments of capacity, experience, technical capability and finances required under procurement law. Project owners would instead complete their selection through a streamlined direct-award procedure. Proposed contractors would still have to meet the legal eligibility requirements under procurement law.

The draft ties this selection mechanism to pricing commitments. Before signing a contract, strategic contractors must agree to reduce the approved contract package price by at least 15% for local railway projects, including those incorporating transit-oriented development (TOD). The minimum reduction for national railway projects would be 10%.

Contractors must also commit to meeting schedules and quality requirements, remaining involved throughout the contracted work and neither abandoning nor unilaterally terminating their contracts.

The draft would further require contractors to waive the right to bring lawsuits or complaints against the state or state agencies before the arbitration bodies and courts specified in the document.

Land compensation could reach twice prescribed levels

Under the draft, national railway projects, including those incorporating TOD, would follow the procedures in Chapter III of Hanoi People’s Council Resolution No. 19/2026/NQ-HDND, dated June 2, 2026.

That resolution sets out the circumstances, authority and procedures for implementing emergency projects and works, and issuing emergency construction orders in Hanoi.

For local railway projects, including TOD projects, planning and construction commencement procedures could run concurrently with investment decision procedures. Project owners and strategic contractors would have 12 months from the start of construction to fulfill the requirements for commencing work.

These local projects could proceed directly to project preparation, appraisal and investment decisions without undergoing the preparation, appraisal and approval procedures for an in-principle investment decision, or other related procedures required by relevant laws.

Before approving a local railway project, including one incorporating TOD, the Hanoi People’s Committee would have to request that the State Audit Office audit the total investment documentation finalized in accordance with the appraisal report of the authority responsible for the investment decision.

On technology, strategic contractors must prepare plans to receive transfers of railway design, construction, manufacturing and technology development expertise.

For components they have no experience delivering, contractors would have to work with international partners and specialists experienced in the railway sector.

Funding would be allocated through medium-term and annual public investment plans. Sources would include central and local government budgets, foreign loans borrowed by the government and on-lent to project implementers, municipal bonds and other lawful funding.

Compensation for land acquired by the state for these projects could be set at up to twice the prescribed level. The Hanoi People’s Committee would determine the rates and decide which routes, sections and areas qualify.

Strategic contractors must work closely with local authorities and relevant agencies to engage and persuade affected households and organizations to hand over sites voluntarily, alongside the process of asset inventories, compensation, assistance and resettlement.

People whose residential land is acquired would receive priority for temporary accommodation under rules set by the city’s People’s Committee.

According to the Hanoi Metropolitan Railway Management Board, the draft policies would broadly simplify and shorten procedures, increase delegation and decentralization, and give project implementers greater initiative and responsibility.

They would also establish corresponding controls over quality, safety, costs, schedules and accountability.

Provisions for controlled trials, technology transfer, acquisition, localization and mastery would support the application of science and technology, innovation and the development of domestic capabilities.

Digital technology could also be deployed in project management, construction and operations in ways suited to practical needs.

Accelerating the capital’s key railway projects would help implement the national railway network plan in the Hanoi area while facilitating connections between urban railways and the national network.

The draft defines key railway projects in the capital as local railway projects, including TOD projects, and national railway projects, including TOD projects where assigned by the government, that require immediate implementation under directions from the Politburo, the Party Central Committee’s Secretariat, the Government Party Committee or the Hanoi Party Committee’s Executive Committee.

It defines a strategic contractor as a promising domestic firm that commits to delivering these projects in the national interest and for Hanoi’s residents and development, and is designated by the Hanoi Party Committee’s Executive Committee to enter into a contract.

Thanh Hue