The railway transport sector plays an important role in Vietnam’s transportation system. Understanding and complying with legal regulations not only helps businesses operate efficiently but also ensures the safety of passengers and cargo.

1. Overview of the Vietnamese Railway Transport Sector

Vietnam’s railway industry currently holds a key position in the national transportation system, serving not only as a means of cargo and passenger transport but also as a vital pillar contributing to socio-economic development. Through various stages of reform and modernization, the sector has received significant government investment aimed at improving quality, safety, and operational efficiency, while adopting international standards for regional and global integration. In 2023, the transportation and warehousing sector, including railways, contributed 4.92% to Vietnam’s total GDP, equivalent to over VND 502.56 trillion.

Technological transformation, modern transport equipment, extensive infrastructure connectivity, and supportive policies from competent authorities have facilitated the sustainable development of the railway sector, opening up numerous investment and cooperation opportunities amid deepening international economic integration. This presents significant opportunities for transport enterprises while also imposing strict legal compliance requirements.

2. Railway Transport Business License

2.1. Licensing Conditions (Article 21, Decree No. 65/2018/ND-CP)

Enterprises operating railway transport must meet the following conditions:

• Have a department in charge of railway transport safety.
• Have at least one person in charge of safety holding a university degree in railway transport and with at least 3 years of direct experience in management and railway transport operations.
• The person primarily responsible for technical and operational management must hold a university degree and have at least 3 years of experience in railway transport operations.

2.2. Registration Process

• Register business with a competent authority to acquire legal entity status and prove legal operations.

Prepare an application dossier for licensing, including:

• Application for a railway transport business license (as per the prescribed form).
• Copy of the business registration certificate.
• Business plan and traffic safety assurance plan.
• List of transport vehicles, with copies of vehicle registration certificates and certificates of technical safety and environmental protection.
• Degrees/certificates of the transport operator (if any).

• Submit the dossier to the Vietnam Railway Authority for validation and on-site inspection.
• The Vietnam Railway Authority will conduct technical and safety inspections; if compliant, a license will be issued; otherwise, supplementation/modification will be requested.
• After licensing, continued supervision ensures legal compliance and service quality maintenance.
• Processing time usually takes 15–30 working days.

3. Technical Safety and Environmental Protection Regulations (QCVN 15:2023/BGTVT)

3.1. Mandatory Technical Safety Standards

• Bogies, vehicle frames, underframes: must ensure stability during operation, minimize vibration, and ensure durable structures.
• Couplers, buffers: must be strong and durable to ensure safe vehicle connections.
• Braking systems: must be complete and effective for safe stopping under all conditions.
• Train operation control systems: include operation control, safety monitoring, and incident handling.
• Safety and fire prevention equipment: mandatory fire protection systems, danger warning, and travel monitoring devices.
• Driver’s cabin and passenger compartments: must be reasonably designed to prevent collision, ensure visibility, and safe operation.
• Lighting, signals, horns: must enhance warning and recognition under various lighting conditions.
• Testing and trial operation: mandatory to verify safe operation before deployment.

3.2. Environmental Protection Regulations

• Diesel engines and sand exhaust systems: must meet emission standards, reduce dust and noise, and prevent environmental pollution.
• Air conditioning and ventilation: must ensure clean air circulation, reduce accumulation of toxic gases in cars.
• Power converters, batteries, traction motors: must use energy-saving technology and limit emissions.
• Electrical devices and systems: must meet electrical safety requirements, minimize energy loss, and prevent leakage causing pollution.
• Water leak testing, operational inspections: aim to prevent leakage of liquids or chemicals, ensuring airtightness and no environmental harm.
• Periodic inspections and retrofitting: ensure vehicles do not negatively affect the environment.

4. Passenger Transport

Railway transport businesses must comply with the following passenger transport regulations: (Articles 32 and 33, Circular 09/2018/TT-BGTVT)

1. Rights of the enterprise:

• Require passengers to purchase additional tickets if none or invalid.

Refuse/suspend transport in cases such as:

• Refusal to buy additional tickets.
• Violation of laws or train rules.
• Children ≤10 years old or <1.32m without accompanying adult.
• Intoxicated, mentally ill, infectious disease patients, or severely ill persons unable to travel.
• Force majeure or special service duties.

• During peak periods: allowed to arrange auxiliary seats or convert sleeper to seating if safety, service quality, and transparency are ensured.
• Exercise other rights under the Railway Law.

2. Obligations of the enterprise:

• Publicly list information: train schedule, ticket prices, ticket sale plans, baggage regulations, packaging requirements, types of goods, weight, and service responsibilities.
• Inspect and control passengers and baggage to ensure safety and security.
• Promptly notify of train delays.
• Submit periodic or ad-hoc passenger transport reports to the Railway Authority.
• Fulfill obligations under OSJD, Vietnam–China protocols, and Railway Law.

5. Cargo Transport

Goods are classified into the following categories: 

1. General cargo

• Regular goods such as household items, clothes, shoes,…
• Machinery, equipment, belongings, vehicles, and oversized/overweight cargo.
• High-value goods such as luxury items and electronics.

Agricultural products, foodstuffs,… requiring standard preservation conditions.
Special goods (Article 7, Circular No. 22/2018/TT-BGTVT):

Transported in wagons or by cargo type in one-way shipments, including:

• Machinery, equipment, and tools not housed in roofed wagons.
• Bulk, unpacked, or difficult-to-quantify goods.
• Live animals.
• Dangerous goods unless otherwise regulated.
• Corpses.
• Goods requiring special care or protection by the shipper.

2. Dangerous goods

Based on physical and chemical properties, dangerous goods are divided into 9 types: (Article 26, Decree 65/2018/ND-CP)

• Type 1: Explosives and industrial explosive materials.
• Type 2: Flammable and toxic gases.
• Type 3: Desensitized liquid explosives and flammable liquids.
• Type 4: Flammable solids including readily combustible solids, self-igniting substances, self-reactive substances and desensitized solid explosives; flammable gas-forming substances when in contact with water.
• Type 5: Oxidizers and organic peroxides.
• Type 6: Toxic or infectious substances.
• Type 7: Radioactive materials.
• Type 8: Corrosive substances.
• Type 9: Miscellaneous dangerous substances and articles.

6. Legal Liability and Penalties

Enterprises must note the following common violations and corresponding penalties:

1. Violations regarding licenses (Article 6, Decree 98/2020/ND-CP):

• Fine of VND 3–5 million for:
  • Erasing or modifying business license content.
  • Leasing, mortgaging, selling, or transferring the license.
  • Renting, borrowing, or purchasing another entity’s license.
• Fine of VND 5–10 million for operating beyond the license’s scope, including area, time, subject, or goods.
• Fine of VND 10–15 million for:
  • Operating without a license.
  • Continuing operations after the license has expired or conditions unmet.
  • Using another company’s license.
• Fine of VND 15–20 million for continuing operations during suspension or after license revocation.

2. Violations in railway operations include: (Chapter III, Decree 100/2019/ND-CP)

• Violating signal, traffic rules, and railway traffic safety regulations.
• Violating railway infrastructure regulations.
• Violating railway vehicle regulations.
• Violating regulations on railway employees.
• Violating railway business regulations.
• Other violations related to railway traffic.

7. Conclusion

Complying with railway transport regulations is a key factor in determining a business’s success in the sector. Enterprises must stay updated with regulatory changes and ensure full legal compliance.

Important note: This article is for reference only. Businesses should consult official legal documents and expert advice from Harley Miller Law Firm for the most accurate information.