Lesson for Vietnam to Learn from Asian Countries’ Financial Instruments for Railway Projects

The development of Vietnam's railway infrastructure faces challenges in securing adequate funding and attracting private sector investment, which necessitates innovative financial strategies. This study aims to propose a comprehensive financial framework tailored to address these challenges. The research employs a comparative analysis method, examining financial instruments used in railway projects across several Asian countries, including Laos, Indonesia, Hong Kong, Japan, Singapore, Taiwan, South Korea, and China. The findings reveal two key insights: (1) integrating railway infrastructure development with Transit-Oriented Development (TOD) and Land Value Capture (LVC) mechanisms significantly boosts government revenues through property development aligned with TOD and LVC principles; (2) diversifying revenue sources—such as fare revenues, property development, and government subsidies—is crucial for ensuring the financial sustainability of Public-Private Partnership (PPP) railway projects and reducing associated risks, thereby encouraging private sector involvement. The proposed framework provides actionable strategies for Vietnam's specific context, offering implications for policymakers to enhance the viability of railway infrastructure projects through innovative financial models.