Is it required to separate state management by regulatory authorities from business management by enterprises in railway activities in Vietnam?
- Is it required to separate state management by regulatory authorities from business management by enterprises in railway activities in Vietnam?
- Does the State of Vietnam give policies to encourage and facilitate organizations and individuals to invest in the development of railway activities?
- What are the incentives and support applicable to organizations or individuals involved in railway activities in Vietnam?
Is it required to separate state management by regulatory authorities from business management by enterprises in railway activities in Vietnam?
Under Article 4 of the Law on Railway Transport 2017 on the basic rules for railway activities:
Basic rules for railway activities
1. Ensure continuous, orderly, safe, accurate and efficient rail transport; facilitate people’s travel, contribute to socio-economic development, ensure national defense and security, and protect the environment.
2. Develop rail transport according to the planning and plan in combination with other modes of transport and international integration to ensure civilization, modernity and uniformity.
3. Arrange rail transport in a uniform and concentrated manner.
4. Separate the state management by regulatory authorities from business management by enterprises; the railway infrastructure business from state-invested rail transport business.
5. Ensure healthy and fair competition among organizations and individuals of all economic sectors doing railway business.
According to the above provisions, in railway activities, the State of Vietnam requires the separation of the state management by regulatory authorities from business management by enterprises; the railway infrastructure business from state-invested rail transport business.
Does the State of Vietnam give policies to encourage and facilitate organizations and individuals to invest in the development of railway activities?
Under Article 5 of the Law on Railway Transport 2017 on the State policies on railway development:
State policies on railway development
1. Give priority to investment in sources for development, upgrade, maintenance and protection of national and urban railway infrastructure to ensure that rail transport plays a key role in national transport system.
2. Encourage, assist, enable and protect rights and legitimate interests of domestic and foreign organizations and individuals involved in investment in railways and railway business.
3. Provide land according to the planning to develop railway infrastructure and railway industry works.
4. Encourage and assist in development of railway industry, research, apply advanced science and technology, high technology, train human resources for development of modern railways.
5. Encourage and enable organizations and individuals to develop the specialized railway system.
6. Give priority to allocation of central government budget to annual and medium-term public investment plan at a reasonable rate to ensure railway infrastructure is developed according to the planning.
The Government shall submit an annual report on the implementation of policy for the development of rail transport and the use of the state budget for investment in rail transport to the National Assembly.
Thus, the State of Vietnam encourages, assists, enables and protects the rights and legitimate interests of domestic and foreign organizations and individuals involved in investment in railways and railway business; encourages and enables organizations and individuals to develop the specialized railway system.
What are the incentives and support applicable to organizations or individuals involved in railway activities in Vietnam?
Under the provisions of Article 6 of the Law on Railway Transport 2017, an organization or individual involved in railway activities shall be eligible for incentives and support as follows:
- They are allocated land without paying land levy on the land area used for the construction of urban and railway infrastructure; the land for construction of specialized railway infrastructure and railway industrial work shall be exempted from land rent.
- According to the actual sources, the State shall lend them a fund charged at the interest rate of preferential investment from the State investment or they shall be provided with government-guaranteed loans according to regulations of law on the management of public debt for the development of national and urban railway infrastructure; investment in and procurement of railway vehicles, machines and equipment for railway maintenance; development of railway industry;
- The railway infrastructure enterprise, urban railway enterprise and railway industry enterprise shall be eligible for incentives for enterprise income tax rate according to regulations of the Law on Enterprise Income Tax;
- They shall enjoy exemption from import duties on machines, equipment, components, railway vehicles, raw materials for the manufacture of machines and equipment or spare parts of machines and equipment necessary for the construction of railway infrastructure that is yet to be domestically produced.
An organization or individual invested in the construction of national and urban railway infrastructure shall be provided with funding by the State for clearing the land for rail transport that is used for the construction of railway infrastructure.
An organization or individual doing railway infrastructure business shall be provided with a separate frequency bands in service of the control of rail transport and traction power network in service of train operation.
Thư Viện Pháp Luật