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News of Transport Section

Improving the Legal Framework for Railway Development: Key Highlights from the Consolidated Railway Law

Updated: 14-04-2026
Improving the Legal Framework for Railway Development: Key Highlights from the Consolidated Railway Law

The Office of the National Assembly has recently issued Document No. 75/VBHN–VPQH dated March 25, 2026, consolidating Railway Law No. 95/2025/QH15. This marks an important step in refining the legal framework and laying the foundation for the development of a modern, synchronized, and safe railway system in Vietnam. The new provisions not only clarify the system structure but also address bottlenecks in investment, technology, and operational management.

The Law stipulates that Vietnam’s railway system consists of three types: national railways, local railways (including urban railways), and specialized railways. This classification helps clearly define the role of each type within the transport network, from serving inter-regional and international demands to urban mobility and specialized transport for enterprises.

The Law also introduces technical classification criteria based on design speed, whereby high-speed railways are defined as those with speeds of 200 km/h or higher. This serves as an important basis for Vietnam to gradually approach and develop modern railway lines in the future.

Standardizing Infrastructure and Track Gauge

A notable long-term policy is the requirement to apply the standard gauge of 1,435 mm for newly constructed national and local railways (except in special cases). This ensures uniformity, connectivity, and international integration.

In addition, the Law requires railway infrastructure to meet strict standards on safety, environmental protection, disaster prevention, and national defense and security. This is a significant step toward improving construction quality and minimizing operational risks.

 

Developing Stations and Enhancing Multimodal Connectivity

The Law clearly defines the classification of railway stations based on functions and connectivity, while requiring local authorities to locate passenger stations in convenient areas, associated with urban centers and other modes of transport.

Beyond transport functions, railway stations are also allowed to integrate commercial services, telecommunications, and bus connections, contributing to the development of modern transport–service hubs.

Removing Obstacles in Project Investment

One of the highlights is the introduction of more flexible investment mechanisms. The Law allows projects to be divided into component sub-projects without requiring each to operate independently, thereby improving feasibility for large-scale projects.

For projects implemented under public–private partnership (PPP) schemes, the State will cover compensation and site clearance costs from the state budget. This is a key mechanism to attract private investment into the capital-intensive railway sector.

Moreover, the adoption of Front-End Engineering Design (FEED) in place of basic design, along with the allowance for international consultation on technology and cost estimates, helps improve project preparation quality and align with international practices.

The Law also permits the use of cost norms and estimates from similar domestic and international projects where local regulations are unavailable or unsuitable. This is particularly important for modern railway projects involving new technologies.

Additionally, investors are allowed to carry out multiple preparatory steps simultaneously—such as feasibility studies, design, and bidding documentation—thereby shortening implementation time.

Effectiveness and transitional Provisions

The Law officially takes effect from January 1, 2026, with certain provisions applied earlier from mid-2025. For projects approved prior to this date, competent authorities may choose to continue under previous regulations or apply the new provisions for subsequent stages.

With a series of synchronized, flexible, and internationally aligned regulations, the consolidated Railway Law is expected to remove long-standing bottlenecks and create strong momentum for the development of a modern, safe, and sustainable railway system in Vietnam in the coming period.

Editorial Board_TECCO1