HCM CITY — HCM City has identified urban railway development as a strategic breakthrough mission in the transportation sector, including the goal of completing the urban railway network by 2035.

Municipal People's Committee Chairman Nguyễn Văn Được said that, after the merger with Bà Rịa-Vũng Tàu and Bình Dương provinces, the demand for developing the urban railway network in the new administrative unit, retaining the name HCM City, has become increasingly urgent.

“It is necessary to revise the railway system plan, adding and extending railway lines to reach Bình Dương, Bà Rịa-Vũng Tàu, Đồng Nai, and Tây Ninh provinces,” he told the recent first working session of the Steering Committee for the city Urban Railway Network Development.

“Metro expansion will create momentum to attract investment and develop urban areas through the Transit-Oriented Development (TOD) model,” he said.

He called for studying a new management model for the Management Authority for Urban Railways (MAUR) and expanding capital mobilisation from domestic and foreign investors by combining official development assistance (ODA) funding and the state budget.

Trần Quang Lâm, acting director of the city’s Department of Construction, said the city has set a target of completing approximately 355 kilometres of urban railway by 2035, with total estimated investment of more than US$40 billion.

By 2045, the city plans to build an additional 155 kilometres of urban railway, excluding metro lines connecting the city centre to Cần Giờ District with a length of about 49 km and from Thủ Thiêm in HCM City's Thủ Đức City to Long Thành in Đồng Nai with a length of about 40km.

The development of the city's urban railway system has made significant progress thanks to special policies and mechanisms aligned with local realities and current laws, with a diverse capital mobilisation strategy that includes funding from the central and local budgets, ODA loans, bonds, and domestic and international loans, helping to secure the necessary resources for infrastructure projects.

In addition, the Prime Minister is authorised to allocate medium-term capital, not exceeding VND209.5 trillion ($8 billion) for the 2026-35 period, while the city People’s Council is tasked to decide on the annual allocation from local budget funds based on legally increased revenue and savings.

Under the mechanism, the steps involved in investment procedures in the city are now clearly defined, including project documentation, appraisal, approval of inspection and supervision, ensuring both progress and effectiveness of projects.

The municipal People’s Committee is authorised to adjust project progress and architectural plans, and select contractors to suit practical conditions.

In addition, the urban development policy through a multi-objective TOD planning model is driving the growth of vibrant hubs around metro stations. This model promotes efficient land use, mobilises capital through Public-Private Partnerships (PPP), reduces personal vehicle traffic and develops sustainable urban areas.

Policies supporting the railway industry, technology transfer and the training of high-quality human resources help enhance domestic capabilities and reduce dependence on foreign partners; and regulations on construction materials along with waste disposal meet environmental standards and encourage the use of green materials.

As for financial management, fee collection, along with commercial and service activities, helps maintain and expand the urban railway network, while relevant agencies have well-outlined roles and duties, which help improve coordination, accountability, and operational efficiency.

The policies also depend on international experience, aiming to remove obstacles and establish a clear legal framework that encourages investment, construction, and operation of the city’s future metro system.

Strategic task in transport

Secretary of the municipal Party Committee Nguyễn Văn Nên said the working session reached a basic consensus on several key issues for implementing the urban railway development plan, in line with the Politburo’s Conclusion No 49.

He highlighted the implementation plan for special mechanisms and policies, particularly for the development of urban railway systems in the capital city of Hà Nội and HCM City, as outlined in the National Assembly’s Resolution No. 188, which authorises the pilot implementation of special mechanisms and policies for the two cities.

This is a strategic breakthrough mission in transportation, as affirmed by the Politburo in Conclusion No. 49, with a goal of completing the city's urban railway network by 2035, he said.

Amid the merger with neighbouring provinces, HCM City is facing new opportunities for developing its socio-economic infrastructure in general and transport infrastructure in particular. — VNS