September 12, 2017

Vietnam Railways plans fleet modernisation

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VIETNAM Railways (VNR) is seeking to invest Dong 4.6 trillion ($US 202m) in new locomotives and rolling stock by 2020, according to a proposal submitted a proposal to the Ministry of Transport.

The procurement encompasses 100 diesel locomotives, 150 coaches, and 800 wagons, including 300 container wagons.

VNR says it plans to finance the programme using a loan worth around Dong 3.2 trillion from the Vietnam Development Bank, with the remaining Dong 1.4 trillion coming from its own budget.

The amended 2017 Railway Law gives VNR access to preferential credit from the state or government guaranteed loans. However, this legislation will not come into effect until July 2018, and VNR is therefore seeking government approval of a loan from the Vietnam Development Bank to ensure it can move forward with its procurement plans.

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