On 27th June 2025, the Vietnamese National Assembly passed an amended railway law that creates incentives for private investment in the railway sector. Companies and individuals operating in the railway business can benefit from exemptions or reductions in land use fees and land rent for railway land. They will also have access to state investment loans or state-guaranteed loans for investments in national or local railway infrastructure. Companies investing in the development or management of the railway infrastructure will benefit from preferential corporate income tax rates. In order to resolve difficulties in adapting plans for large national railway projects, the revised law allows projects to be approved and adapted even if there are deviations from related plans, without requiring formal changes to other affected plans. Instead, these plans must be updated without delay and disclosed in accordance with the regulations. The law emphasises fundamental management principles such as safety, separation of operational and financial functions, and fair competition. It also clarifies eligibility for incentives and adds mechanisms for oversight by the National Assembly. The government prioritises budget allocations for the development, upgrading and maintenance of railway infrastructure and for the growth of the railway sector.
