“Vietnamese Enterprises Eye High-Speed Rail Project: Ambition on Track”

The news about VinSpeed’s official registration to invest in the North-South high-speed rail project has sparked great interest. Accordingly, the company proposed to implement the project with a total investment of approximately VND 1,562 thousand billion (equivalent to USD 61.35 billion), excluding site clearance costs.

In the proposal sent to the authorities, VinSpeed committed to arranging 20% of the capital (approximately VND 312,330 billion, equivalent to USD 12.27 billion), with the remaining to be borrowed from state capital with a 0% interest rate within 35 years from the disbursement date.

Prior to VinSpeed, in October 2024, Deo Ca Group sent a document to the Government, proposing solutions to promote key infrastructure projects, including the North-South high-speed rail. Deo Ca expressed their desire for the Government to prioritize capable domestic enterprises to participate in major projects and suggested learning from the experience of foreign corporations.

Mr. Ho Minh Hoang, Chairman of Deo Ca Group, shared, “We propose that the State support organizations for Vietnamese enterprises to learn from the experience of large foreign enterprises in implementing large-scale projects; clearly define the functions and tasks of some ministries and sectors related to standards, norms, and BIM models for application in transport infrastructure projects, especially high-speed railways.”

Deo Ca Group also proposed that the implementation of the North-South high-speed rail project be divided into two components: Component 1, including bridges, roads, and tunnels, should be assigned to domestic enterprises similar to the recent high-speed road projects; Component 2, including locomotives and rolling stock, signaling systems, etc., should be assigned to a consortium of domestic and foreign enterprises.

Alongside Deo Ca, the Chairman of Hoa Phat Group, Mr. Tran Dinh Long, has also expressed strong interest in the North-South high-speed rail project. He affirmed that Hoa Phat has researched and is fully capable of producing the necessary types of steel, especially rail steel.

Mr. Long stated, “For the past two to three years, we have been researching this product line. I affirm that the production of rail steel is well within Hoa Phat’s capabilities. If the Government and the Prime Minister assign this task to us, Hoa Phat can provide various types of steel for the project, not just rail steel.”

North-South High-Speed Rail Project Expected to be Completed by 2040

According to Resolution No. 172/2024/QH15, the North-South high-speed rail project is approximately 1,541 km long, starting from Ngoc Hoi Station (Hanoi) to Thu Thiem Station (Ho Chi Minh City), passing through 20 provinces and cities.

The design speed of the project is 350 km/h, with a total of 23 passenger stations and 5 freight stations, with an average distance of about 67 km between passenger stations. The project has an initial total investment of approximately VND 1.7 quadrillion, equivalent to USD 67 billion. Of this, 80% will come from the state budget, and 20% from ODA loans or other legal sources.

The North-South high-speed rail project is identified as one of the key transport infrastructure projects of national importance, with the goal of commencing construction by the end of 2026 and completing the first phase by 2040.

The implementation roadmap is divided into two phases: phase 1 (2026–2032) prioritizes investment in the two sections with the highest transport demand, Hanoi–Vinh and Nha Trang–Ho Chi Minh City; phase 2 (2032–2040) will continue to complete the remaining sections to connect the entire line. Meanwhile, the Government is developing a legal framework, capital mobilization policies, and public-private partnership (PPP) mechanisms to ensure the project’s feasibility given the limited budget.

In terms of significance and impact, the North-South high-speed rail is not just a modern means of transportation but also a strategic driver for sustainable development and the restructuring of the national economic space.

Firstly, the project is expected to significantly reduce travel time between the North and the South from over 30 hours (by regular train) to just 5–6 hours, facilitating the transportation of goods and people’s travel. This will reduce the pressure on road and air transport, contributing to a decrease in traffic accidents and environmental pollution.

Economically, the high-speed rail line will open up development opportunities for provinces and cities along the route, especially regional centers, by attracting investment, tourism, and trade. Additionally, the project holds strategic significance in promoting clean energy transition and reducing carbon emissions, aligning with Vietnam’s commitment to achieving net-zero emissions by 2050.

Furthermore, the high-speed rail reflects a long-term vision in planning the development of synchronous and modern infrastructure, bringing Vietnam closer to the transportation standards of developed countries in the region and worldwide.