The ministry thinks that preferential policies need to be applied to institutions and individuals participating in scientific and technological activities that serve project implementation.

Under specific policies, institutions and individuals have the right to determine the contractors and to receive support from the state budget to implement equipment and machine procurement packages. 

Investors and EPC (engineering, procurement, and construction) contractors must prioritize ordering products from Vietnamese enterprises capable of providing products and train a workforce to implement the project, as well as ensure management, operation, exploitation and maintenance of the North-South high-speed railway system.

The Prime Minister makes decisions on the list of products in the railway and other industries to be used for the project which will be assigned to Vietnamese institutions and enterprises.

As for other items that can be made domestically, investors, contractors and EPC contractors must prioritize Vietnamese-made products.

Applauding the policy on prioritizing orders with domestic enterprises, Prof Dr Hoang Van Cuong, a member of the National Assembly’s Finance and Budget Committee, said contractors must be Vietnamese, not foreign.

Citing a series of urban railway sections under execution now, Cuong stressed that if Vietnam lets foreign contractors organize the project execution and bring equipment from overseas to Vietnam for installation, Vietnam will be dependent on foreign products, and the time to implement the project.

“If foreign companies act as contractors, they will stop project execution if there is any problem, while we cannot intervene their work. Vice versa, if Vietnamese contractors implement the project, we will have the right to request them to speed up execution and be sure the project can be completed on schedule,” he said.

Citing the 500kv electricity transmission line Circuit 3, Cuong said the implementation has been going rapidly because the contractors are Vietnamese. The government and Prime Minister can set deadlines and pressure them to complete the project.

Cuong thinks that it would be better if Vietnamese contractors team up with foreign contractors to form the joint names in which foreign contractors only play the role of support and transfer technology and solve technical problems, while domestic contractors build the works themselves.

“We need a special policy under which the state places orders with domestic corporations which will find partners to team up with to implement their works,” he said.

Leaders of Cienco 4, a large infrastructure contractor, said that most construction infrastructure items, except equipment, and terminals (not central terminals) can be implemented by major Vietnamese contractors.

N. Huyen