The Billionaire’s Vision: Revolutionizing Vietnam’s Transport with High-Speed Rail

On May 14th, VinSpeed High-Speed Railway Development and Investment Joint Stock Company registered to invest in the North-South high-speed railway project. The project, with an estimated completion date of 2030, will lay the foundation for Vietnam’s railway industry and provide a new development impetus for local areas, contributing to the country’s economic leap forward.

The project is estimated to cost over VND 1,560,000 billion (equivalent to over USD 61 billion), excluding compensation, support for relocation, and site clearance costs. VinSpeed is responsible for arranging 20% of the total investment capital, equivalent to more than VND 312,000 billion (over USD 12 billion). For the remaining 80% (excluding compensation, support for relocation, and site clearance costs), VinSpeed proposes to borrow from the State without interest within 35 years from the disbursement date.

Compared to the plan approved in Resolution No. 172/2024/QH15, VinSpeed’s proposal significantly reduces the burden on the state budget, especially given that most high-speed railway projects worldwide experience slow or no return on investment and prolonged operational deficits.

VinSpeed aims to commence construction before December 2025, accelerate the construction process, and operate the entire line before December 2030.

VinSpeed is in negotiations with partners from countries with leading railway industries, including China, Germany, and Japan, for technology transfer and local production of locomotives, carriages, and signaling systems in Vietnam. The company will also organize personnel training to master the technology and ensure proactive development of Vietnam’s railway industry.

To ensure partial revenue repayment to the State, VinSpeed will collaborate with Vingroup Joint Stock Company (stock code: VIC) and Vinhomes Joint Stock Company (stock code: VHM) to propose the development of modern, fully-facilitated urban areas adjacent to the railway stations, following the TOD model.

Currently, most areas adjacent to railway stations are far from the centers of provinces and cities and have not created significant value. However, with investments from the Vingroup ecosystem, these areas will undoubtedly develop robustly, contributing to infrastructure improvements, enhanced living standards, tourism promotion, and economic growth for local areas.

Ms. Duong Thu Van, representing VinSpeed, shared: “This is a historic moment for Vietnamese private enterprises as we deeply feel the determination, support, and expectations of the Party, State, and people for the private sector. Despite the challenges, we boldly and proactively registered to invest in this project.”

Ms. Van pledged to exert utmost efforts, be creative, and take action to develop the project. VinSpeed will generate revenue, offset investment costs, contribute to timely repayment of loans, and cooperate extensively with domestic enterprises to develop and construct the high-speed railway simultaneously, fostering the growth of Vietnam’s high-speed railway industry.