Vietnam promulgates new Railway Law, boost infrastructure investment and decentralization

The new law, passed by the 15th National Assembly during its 9th session, marks a significant institutional breakthrough by granting broader autonomy to provincial and municipal authorities. Deputy Minister of Construction Nguyen Danh Huy, who introduced the law at the event, emphasized the core principle guiding the reform: "Localities decide, implement, and take responsibility".

Deputy Minister of Construction Nguyen Danh Huy presents key highlights of the newly promulgated Railway Law during the press conference held at the Presidential Palace in Hanoi.

According to Deputy Minister Nguyen Danh Huy, the Railway Law comprises four chapters and 59 articles, covering key aspects of railway infrastructure development, industry management, and transportation services. "The law reflects our commitment to resolving long-standing barriers in railway investment and operations", he said.

The legislation aims to operationalize the Communist Party of Vietnam’s strategic development agenda, particularly its four core breakthroughs: institutional reform, human resources, infrastructure development, and innovation. It also seeks to modernize the country’s outdated railway system to meet the demands of industrialization and global economic integration.

By decentralizing decision-making to local levels, the law is expected to accelerate railway projects, improve efficiency in public investment, and attract more private capital into the transport sector. It also addresses critical bottlenecks that have hindered project execution in recent years, such as overlapping regulations and fragmented governance.

Vietnam’s railway system, which has remained largely underdeveloped compared to road and air transport, is in urgent need of modernization. Despite its strategic role in logistics and regional connectivity, the sector has long suffered from low investment, outdated infrastructure, and limited-service coverage.

Earlier in the day, the Office of the President also announced the promulgation of eight other laws passed by the National Assembly. These include new regulations on land, banking, and energy, signaling the government’s broader push for institutional reform and economic restructuring.

The Railway Law is expected to take effect in early 2026, allowing time for ministries, local authorities, and investors to prepare implementation plans and investment proposals under the new legal framework.

Hải Ninh