Deputies focused on the need for the railway, how it would be paid for and its socio-economic effect.

Another 16,500 households would also be affected, the deputies heard. Land clearance compensation was estimated at more than VND30 trillion (US$1.5 billion).

The Ministry of Transport's reported the $56 billion railway would cover 1,570km, through 20 provinces and cities. With a design speed of 300kmph, the journey between the cities would take about five and a half hours.

Many deputies who agreed with the project reasoned it would contribute to infrastructure upgrading and stimulate domestic production such as cement, iron and steel, and create more jobs.

Deputy Luong Phan Cu, from the Central Highland province of Dak Nong, said the railway was needed to relieve pressure on current transport infrastructure.

It would help develop tourism, boost industry and improve lives in the central region, Cu said.

However, some deputies said the nation already had high foreign debt and could not afford the railway.

Northern Yen Bai Deputy Sung Thi Chu said the initial investment of $56 billion accounted for two third of the annual GDP. Chu' noted that only 11 countries had express railways.

Hai Phong Deputy Tran Ngoc Vinh said Viet Nam's budget was limited and that money was needed for other activities.

Vinh suggested upgrading the existing railway network and building high-speed ships. He said countries like Thailand and the Philippines had stopped borrowing "official development assistance".

Northern Hai Duong Province Deputy Le Dinh Khanh said the ministry should improve the existing railway system. He said the express railway should not be built until the country's per capita income was $3,000 per month.

Central Quang Nam Province Deputy Nguyen Van Thuan said construction should be delayed until 2020 because of the nation's poor financial and management capacity.

As the railway was to be built from 2014-35, many deputies worried costs might escalate.

Northern Vinh Phuc Province Deputy Hoang Van Toan said the project should be delayed until 2015-2017 and construction time should be cut to 10 years, which could be achieved by the use of modern technologies.

Binh Thuan Province Deputy Dao Xuan Nay said the project should be split into sections, from Ha Noi to Vinh, and from HCM City to Nha Trang.

Yen Bai Province Deputy Chu stressed the need to ensure the living standards and conditions of resettled people be maintained.

Most of the relocated households' income was earned from farming.

The Assembly should pay due attention to creating jobs for them and helping them stabilise their lives, she said. — VNS

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