Vietnam Pushes Forward with $67 Billion High-Speed Rail Project
Vietnam government has approved the plans for a USD $67 billion High-Speed Rail (HSR) project. The ambitious plan is to construct a 1,541 km high-speed railway connecting the capital, Hanoi, to the southern economic hub, Ho Chi Minh City. Prime Minister Pham Minh Chinh emphasized the national significance of this project during a recent meeting. He highlighted its dual role in driving socio-economic development and strengthening national defense. Chinh called for “special mechanisms” to streamline procedures, accelerate construction, and shorten timelines. These “mechanisms” are to ensure the railway becomes operational as quickly as possible.
The proposed railway will feature 23 passenger stations and five cargo hubs. Moreover, the trains will be designed to travel at speeds of up to 350 km per hour. It will pass through 20 provinces and cities, offering critical connectivity for passengers and light cargo. The Ministry of Transport has estimated the total investment at $67.34 billion. Thus, making it the largest infrastructure project in Vietnam’s history.
In terms of funding, Vietnam intends to self-finance the project. It will largely relying on state revenues and the issuance of government bonds. The government of Vietnam will only consider foreign loans if necessary. This approach reflects the country’s desire to avoid reliance on external funding. Moreover, this stance is consistent with its broader economic strategy of maintaining financial independence. However, the scale of the project—requiring an estimated $5.6 billion in annual investment over 12 years—has raised questions about the feasibility of completing it without external support. Experts warn that while the government’s self-reliant approach is admirable, the sheer size of the investment may necessitate foreign loans or partnerships, particularly in areas such as technology and expertise.
PM Chinh gives direction to Vietnam transport ministry on HSR project
Prime Minister Chinh directed the Ministry of Transport to collaborate with other ministries and finalize the project’s framework for submission to the National Assembly. The timeline includes site clearance and initial construction work on the Hanoi-Vinh and Nha Trang-Ho Chi Minh City sections beginning in late 2027. The remaining sections are expected to start in 2028-2029, with the entire route projected for completion by 2035.
In addition to the north-south high-speed rail, Chinh stressed the importance of accelerating railway projects connecting Vietnam with China. These include the Lao Cai-Hanoi-Hai Phong route. Furthermore, Chinh emphasized that these projects will play a crucial role in boosting regional connectivity and trade. These projects aim to enhance regional trade and transport links. Thus, positioning Vietnam as a key player in Southeast Asia’s growing transportation network.
This project marks a significant step forward in Vietnam’s infrastructure development, with long-term implications for the country’s economic growth and regional integration.