Seminar: “The Mechanical Engineering Industry and the Development of Vietnam's Railway System”. 

The purpose of the Seminar is to clarify the issue of promoting the internal capacity of mechanical-construction enterprises to autonomously develop Vietnam's railway projects; the capability of Vietnam's mechanical engineering industry, of the Vietnamese science and technology (S&T) intellectuals in the future to meet the needs of Vietnam's railway industry.

Dr. Sc. Phan Xuan Dung – President of the Vietnam Union of Associations delivering the opening speech at the Seminar.

Delivering the opening speech at the Seminar, Dr. Sc. Phan Xuan Dung – President of the Vietnam Union of Associations stated: “The railway transport sector receives special attention in most industrialized countries. After a long period of being neglected, Vietnam's railway transport sector in particular and the railway industry in general have deteriorated, not only failing to meet the country's socio-economic development requirements but also being one of the reasons making Vietnam's logistics costs among the highest in the world, which makes Vietnamese goods less competitive, negatively affects economic development, and reduces investment attractiveness…”

The President of the Vietnam Union of Associations suggested that the Seminar focus on clarifying: the ability to be self-reliant in building and developing the railway system (including high-speed railways, urban railways, and national railways); current shortcomings and inadequacies in developing Vietnam's railway system and solutions to remove these obstacles; assessing the capacity of mechanical engineering enterprises and the mechanical engineering development strategy in participating in Vietnam's Railway Development Program; identifying the main work items in constructing railway systems, assessing the localization potential of these items, and proposing that the Government issue necessary mechanisms and policies for localization…

Dr. Do Huu Hao – President of the Vietnam Mechanical Engineering Association: The Vietnamese mechanical engineering industry is capable of producing many product types and can meet over 50% of domestic demand if adequately and timely invested.

Speaking at the seminar, Dr. Do Huu Hao – President of the Vietnam Mechanical Engineering Association further affirmed that mechanical engineering is a foundational and important industry for the development of other industries, is key to the industrialization and modernization of the country, and is a launchpad for Industry 4.0. Reality has shown that in the world, countries that successfully achieve industrialization and modernization must have a strong mechanical engineering industry. The Vietnamese mechanical engineering industry is capable of producing many product types and can meet over 50% of domestic demand if adequately and timely invested; however, State resources, enterprise resources, and social resources are still limited.

Based on the above situation, the President of the Vietnam Mechanical Engineering Association proposed several solutions: The State should review key mechanical product groups; Create and protect the domestic market for domestic enterprises through laws and sub-law documents; The Government should soon amend the Bidding Law in a direction more favorable to domestic enterprises; Establish new financial regulations so that enterprises can easily access domestic financial resources; Enterprises themselves should invest towards “deep specialization, broad cooperation”…

At the Seminar, delegates and scientists exchanged and discussed towards the goal: self-reliance in building and developing the railway system including high-speed railways, urban railways, and national railways; analyzing current shortcomings and inadequacies in developing Vietnam's railway system to propose solutions to remove obstacles; assessing the capacity of mechanical engineering enterprises and the mechanical engineering development strategy in participating in Vietnam's Railway Development Program; identifying the main work items in constructing railway systems, assessing the localization potential of these items, and proposing that the Government issue necessary mechanisms and policies for localization…

Dr. Phan Dang Phong – Director of the National Research Institute of Mechanical Engineering affirmed: The establishment of a policy mechanism to master railway transport equipment technology is very necessary and urgent.

Dr. Phan Dang Phong – Director of the National Research Institute of Mechanical Engineering (Ministry of Industry and Trade) affirmed: “The establishment of a policy mechanism to master railway transport equipment technology is very necessary and urgent, because it not only promotes the spirit of self-reliance and self-strengthening of domestic mechanical engineering enterprises, turning potentials, advantages, and even challenges into opportunities and development drivers for the country, but also helps us effectively control project investment costs, create more jobs for domestic mechanical engineering units, reduce trade deficits, and create development momentum and breakthroughs for the economy right from the investment and construction phase.”

Mr. Hoang Nang Khang - Deputy General Director of Vietnam Railway Corporation speaking at the Seminar.

Proposing directions for developing Vietnam's railway industry, Mr. Hoang Nang Khang - Deputy General Director of Vietnam Railway Corporation stated that technology transfer must be a top priority. Vietnam needs criteria and binding principles in the bidding process to select suppliers. On the other hand, there is also a need for principled binding requirements to help domestic manufacturing enterprises gradually participate in the supply chain of materials, accessories, and process products appropriate to each stage as well as the development level and core competencies of domestic companies. To create conditions for the domestic business community to have opportunities to access and participate in projects to promote the development of domestic industry (especially for mechanical and manufacturing enterprises), it is necessary to amend and issue bidding regulations to increase the proportion of domestically produced equipment, materials, and goods and strengthen the management of general contractor packages for machinery and equipment to create a market for domestic mechanical enterprises; Protect the domestic market and consumers through building technical barriers in line with international commitments by comprehensively completing standards and regulations for mechanical products. Along with that, the establishment of specialized research facilities on railways, such as the Railway Design Research Institute, is also very necessary…

Assoc. Prof. Dr. Nguyen Chi Sang – President of the Vietnam Association of Mechanical Engineering Enterprises concluding the Seminar.

Summarizing the opinions expressed, Assoc. Prof. Dr. Nguyen Chi Sang – President of the Vietnam Association of Mechanical Engineering Enterprises concluded the Seminar: 1) Continue to recommend that the Government have a set of criteria for selecting technology for the railway system that ensures profitability, cargo capacity, and CO2 reduction; 2) The capacity of enterprises in developing Vietnam's railway system, recommend that it is essential to take control in building and developing the railway system, be self-reliant in construction and maximize localization (design, project management, construction, locomotives... about 60-70%), recommend that the Government protect the market so that enterprises can develop. Immediate tasks: Propose that the Government establish a Management Board for the development of railway projects; Build a unified standard system for the railway industry; Build a unified overall roadmap for localization of the railway system; Issue mechanisms and policies so that Vietnamese enterprises can participate in railway system development programs. The opinions of experts, scientists, and managers will be compiled and sent to Party and State leaders, the National Assembly, the Government, and relevant ministries and sectors.