Vietnam plans to assess a $60 billion proposal for a high-speed railway connecting Hanoi and Ho Chi Minh City, targeting completion by 2030, five years earlier than previously scheduled. This is reported by the railway transport news portal Railway Supply.

Vietnam plans to assess a $60 billion proposal for a high-speed railway connecting Hanoi and Ho Chi Minh City, targeting completion by 2030, five years earlier than previously scheduled.
Image: CMSC

Vietnam’s Ambitious High-Speed Rail Initiative

Vinspeed, led by billionaire Pham Nhat Vuong, proposes constructing a 1,541-kilometer high-speed rail line stretching from Hanoi to Ho Chi Minh City. The project, estimated at $60.3 billion, aims for completion by 2030, accelerating the timeline set by the government.

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According to the proposal, Vinspeed would finance 20% of the project and seek a 0% interest loan from the government for the remaining 80%, repayable over 35 years. This financial structure intends to minimize fiscal pressure while expediting development.

Strategic Implications for Vietnam’s Infrastructure

The Ministry of Construction has been tasked with gathering feedback from relevant agencies and drafting a resolution by May 20 for submission to the National Assembly. This move signifies the government’s commitment to modernizing Vietnam’s transportation infrastructure.

Previously, in October 2024, the Ministry of Transport indicated that Vietnam would independently fund the railway. However, Vinspeed’s involvement introduces a private-sector dynamic, potentially enhancing efficiency and reducing reliance on foreign entities.

Pham Nhat Vuong, chairman of Vingroup, has diversified his conglomerate from real estate and retail into sectors like electric vehicles and infrastructure. His electric vehicle company, VinFast, is listed on Nasdaq with a market capitalization of $11.7 billion.

In October 2024, discussions also took place between Vietnam’s government and China State Construction regarding the railway’s construction. Vinspeed’s proposal offers a domestic alternative, aligning with national interests and reducing foreign dependency.

If approved, this high-speed railway would be among Southeast Asia’s most significant infrastructure projects, enhancing connectivity and fostering economic integration across Vietnam.

Source: www.constructionbriefing.com

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