Vietnam's urban railways are delayed in opening one after another Partly due to evasion of responsibility by the authorities
Hanoi Metro Line 3 not expected to open in 2027: state news agency Vietnam
The development of urban railways in Vietnam is lagging behind. The opening of a second line in the capital, Hanoi, has been postponed until the end of the year and is expected to be delayed until 2027. In addition, it is becoming difficult to open the first route in southern Ho Chi Minh City at the end of 2023. In addition to the lack of funding, administrative authorities are notable for not solving problems independently, causing further delays.
"I didn't expect it to be five years too late." People involved in the construction industry in the country show a surprised expression. In mid-September, the city of Hanoi announced that it would not open the Hanoi urban railway line 3 (Nhung-Hanoi station), which was planned to run through the city center, by the end of the year.
The route is 12.5 kilometers long. South Korea's Daelim Industrial is responsible for the above-ground part, and the underground part is a joint venture (JV) between South Korea's Hyundai Engineering and Construction and Italian construction company Guerra. It was originally planned to start construction in 2010 and open in 2015, but it is believed that the plan has already been changed about five times.
If the opening of the entire line is delayed until 2027, construction costs will increase. The total project cost was originally expected to be 1.2 billion dollars (approximately 170 billion yen), but repeated delays have raised the possibility that it will exceed 1.5 billion dollars.
The city of Hanoi cited delays in land acquisition, lack of capacity of builders and consultants, differences between international contracts and Vietnamese law, and the spread of the new coronavirus as reasons for the delay in opening the business.
However, despite the development of general urban railways, it can be said that it is an abnormal situation that it takes nearly 20 years from the start of construction to the opening of business. Industry insiders point out that, amidst the various difficulties, "the city and other authorities are not actively working to resolve the issue."
The main reason for the delay in infrastructure development in Vietnam is the country's laws and regulations. In the country, "acts that damage national property due to lack of responsibility" are also stipulated in the penal code, and there is a risk of being charged with a crime. If an error in procedures is discovered due to an accident or if the cost exceeds the initial plan, the person responsible is subject to criminal punishment retroactively.
The one-party-ruled Communist Party has set out to eradicate corruption, and is increasingly moving to expose those involved. In the case of infrastructure projects, bribery of related parties may be discovered in a series of investigations. Due to the opacity of the criminal law, it is becoming increasingly common for those in charge to avoid decision-making.
Even in Ho Chi Minh City, the largest city in the country, the opening of the urban railway supported by the Japan International Cooperation Agency (JICA) has been significantly delayed. Initially, it was scheduled to open in 2018, but the plan has been repeatedly revised, and it is becoming difficult to open the current plan in 2023. The city often provides payment assistance to consultants and business operators, and the Japanese government is also concerned.
In 2009, Vietnam opened its first urban railway in Hanoi. At present, one line is under construction each in Hanoi and Ho Chi Minh City, but for a total of less than 20 lines, there are no plans to start construction for various reasons.
With a population of approximately 100 million people, Vietnam faces a major challenge in infrastructure development as it grows economically. However, construction of power plants and airports is generally delayed for the same reasons as the delayed opening of urban railways.
In Vietnam, the Communist Party Congress is held every five years to decide the personnel affairs of the leadership involved in national management. In the past, power struggles erupted behind the scenes and decision-making tended to be postponed as the party congress approached. The next party convention will be in 2026. An executive at a major Japanese trading company said, "Even though there is still time until the party convention, I am worried about the future."
