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Jun 25, 2024 / 15:35

Chinese giants keen on Vietnamese rail projects

Vietnamese and Chinese state-owned enterprises must take the lead in rail projects

Chinese companies are willing to cooperate with Vietnamese partners in mass transit projects, according to a meeting between Vietnamese Prime Minister Pham Minh Chinh and Chinese executives on June 24.

 Prime Minister Pham Minh Chinh (right) meets Sun Rongkun, Chairman of Dalian Locomotive and Rolling Stock Co Ltd. Photo: VGP

Sun Rongkun, Chairman of Dalian Locomotive and Rolling Stock Co Ltd (CRRC), said the company is one of the world's leading railway developers with experience and technological competence.

CRRC is always ready to participate in cross-border railway projects and the development of metro systems in Hanoi and Ho Chi Minh City, he said.

The executive of the Chinese company pledged to provide comprehensive solutions and technologies to the Vietnamese partners, as well as to help them train their workforce.

These efforts will help Vietnam boost the railway industry and related sectors and promote relations between Vietnam and China, Sun added.

CRRC, which has a long history and employs more than 8,700 people, posted a total revenue of US$2.2 billion in 2023.

In Vietnam, the company supplies diesel locomotives, rolling stock and parts for metro projects, as well as equipment for wind farms.

Railway development is also an area of interest for the Power Construction Corporation of China (PowerChina), according to Deputy General Manager Wang Xiaojun..

He said PowerChina has built more than 2,000 km of high-speed railways and 800 km of underground metro lines. The company is keen to share its knowledge with Vietnamese partners, he added.

Wang also expressed his desire to be involved in Vietnamese power projects. He also thanked the Vietnamese government for its support since the company ventured into Vietnam in 2000.

Over the past 24 years, PowerChina has signed contracts and agreements worth $9 billion and employed more than 1,000 workers and experts.

Notable projects involving PowerChina include the Lai Chau and Son La hydropower plants, the Vinh Tan coastal thermal power plant, 23 solar power plants, 25 wind power projects and two waste-to-energy plants in Hanoi and Cantho.

 The working session between PM Chinh and PowerChina Deputy General Manager Wang Xiaojun. Photo: VGP

For his part, Prime Minister Pham Minh Chinh congratulated the Chinese companies on their accomplishments.

He said Vietnam and China needed to take measures to boost bilateral economic relations, especially in developing railways and producing energy.

"The Vietnamese government is committed to providing foreign investors with the best conditions to develop and operate their investment projects, thus creating mutual benefits for both sides."

According to Chinh, Vietnam is in great demand for railway lines. Vietnam's rail network is 2,000 km long, with more than 300 stations. But the sector's performance is far below par.

In recent years, pandemics and geopolitical tensions have reshaped the global economy, and rail transport has a brighter future because of its low cost and high cargo volume.

Chinh said Vietnam and China were working on a plan to build international-standard railways, including one linking the northern province of Lao Cai to Hanoi and the port city of Haiphong.

The Prime Minister added that metro lines are the backbone of major cities such as Hanoi and Ho Chi Minh City, and that the two metropolises have been looking for solutions to build and operate the lines.

"State-owned enterprises from both countries must take the lead in these projects. We should learn from our experience in previous projects so that the upcoming ones are efficiently carried out under the principle of 'harmonized interests, shared risks'," said PM Chinh.

He recommended that CRRC and PowerChina support the Vietnam Railways Corporation and local companies in developing the technologies, facilities, equipment, and manpower needed for railway projects.

The Prime Minister hoped that the participation of Chinese companies would improve the quality of local railways. He also encouraged them to increase their presence in other sectors, such as new energy.

The Vietnamese leader also said that a policy framework on direct power purchase agreements (DPPAs) is being developed to facilitate trade in renewable energy, natural gas power and liquefied natural gas (LNG).

Prime Minister Chinh's meeting with Chinese businesses was part of his trip to attend the 15th World Economic Forum (WEF) Annual Meeting of the New Champions and working sessions, held in Dalian, Liaoning Province, China, from 24 to 27 June.