Vietnam is planning a large-scale railway expansion to improve transport and economic growth. The government has secured financial backing, including Chinese loans, to fund this $8 billion infrastructure project. This was reported by the railway transport news portal Railway Supply.

Vietnam is planning a large-scale railway expansion to improve transport and economic growth. The government has secured financial backing, including Chinese loans, to fund this $8 billion infrastructure project.
Vietnamese Minister of Transport Tran Hong Minh. Photo: Gia Han / Tuoi Tre

Vietnam’s Ambitious Railway Development Plan

Officials intend to use domestic and international funds, including Chinese loans, to finance construction. The National Assembly Standing Committee met Monday to discuss the project’s development strategies.

Don’t miss…Final Funding Secured for Portishead to Bristol Line Reopening

Transport Minister Tran Hong Minh detailed the proposal, highlighting key elements of the planned railway line. It will start at Vietnam’s Lao Cai Province, connecting to China, and terminate in Hai Phong.

The railway will pass through nine major provinces and cities, enhancing regional transport connectivity. These include Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong.

The main railway line spans 390.9 kilometers, with additional branch lines covering 27.9 kilometers. Engineers designed the system as an electrified 1,435mm gauge railway to accommodate passengers and freight.

Planners set different speed limits depending on terrain and location along the route. Trains will operate at 160 km/h between Lao Cai and Hai Phong.

In Hanoi, speed will be limited to 120 km/h due to urban conditions. Branch lines will support lower speeds, capped at 80 km/h.

Authorities intend to construct 18 stations and 13 technical service points along the railway. As demand grows, technical stations may convert into mixed-use facilities for efficiency.

Developers estimate the project will require 2,632 hectares of land acquisition. Consequently, approximately 19,136 residents will face relocation to accommodate infrastructure expansion.

Funding and Economic Impact in Vietnam

Project planners expect the feasibility study to take place between 2025 and 2030. The government has introduced 19 special policies to ensure successful execution.

Fifteen of these policies align with the North-South high-speed railway framework. The remaining four introduce additional financial and regulatory provisions.

Officials suggested removing appraisal requirements for funding balance assessments during construction. The prime minister may issue government bonds to raise necessary capital.

Vietnam plans to use multiple funding sources, including official development assistance and concessional loans. Additional central budget allocations will supplement financial needs.

Vu Hong Thanh, head of the National Assembly Economic Committee, acknowledged the project’s high investment demands. He emphasized the importance of thorough financial planning.

Between 2021 and 2025, Vietnam allocated $5 million for initial project assessments. From 2026 to 2030, expected expenditures will rise to approximately $7 billion.

For the 2031-2035 period, authorities anticipate needing an additional $1 billion in investment. Revenue projections indicate that early operations will mainly cover maintenance expenses.

Officials estimate the government must allocate $109.36 million for infrastructure upkeep within the first five years. Analysts warn of potential financial risks requiring careful mitigation.

Economic experts recommend an extensive evaluation of railway project effectiveness. They urge precise financial assessments to safeguard against long-term budgetary burdens.

National Assembly Chairman Tran Thanh Man expressed support for the railway’s necessity. However, he advised additional research to guarantee financial sustainability.

He stressed that planners should optimize route alignment to enhance network connectivity. The railway should minimize environmental impact while improving logistical efficiency.

Station placement must consider cost-effectiveness, ensuring seamless integration with Vietnam’s national transport system. Development strategies should prioritize long-term operational sustainability.

Source: tuoitrenews.vn

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…Unforgettable Train Journey Across Canada After a $500K Lottery Win

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit