Breakfast in Hanoi, Lunch in Ho Chi Minh City: A 350km/h Train Journey with VinSpeed – A Dream Come True in 5 Years?

VinSpeed is Determined to Make the Project a Reality

Ms. Dao Thuy Van, Deputy General Director of VinSpeed, shared with the media after the company submitted its proposal for the North-South high-speed rail project: “This project marks a significant turning point for VinSpeed and opens up opportunities for deeper private sector involvement in Vietnam’s strategic infrastructure development. Despite the challenges ahead, we are committed to leveraging all resources to turn this vision into reality, leaving a lasting impact on the nation’s development.”

As the need for a modern and rapid transportation system becomes increasingly crucial, the proposed North-South high-speed rail project by VinSpeed has captured the attention of the community and policymakers alike.

Dr. Le Xuan Nghia, former Vice Chairman of the National Financial Supervisory Commission, expressed his confidence in VinSpeed’s capabilities in an interview with Thanh Nien newspaper: “Given the track record of Mr. Pham Nhat Vuong’s enterprises, we can trust that VinSpeed will carry the ‘miracle gene’ of Vingroup, as demonstrated by their numerous infrastructure projects that set records in construction speed and quality.”

“It’s worth mentioning that China completed a staggering 29,000 km of high-speed rail in 5 years. So, why doubt VinSpeed’s capabilities and commitments? Moreover, completing the project 5 years ahead of schedule will result in significant savings for the nation,” Dr. Nghia added.

Additionally, Attorney Truong Thanh Duc, Director of ANVI Law Firm and Arbitrator at the Vietnam International Arbitration Center (VIAC), shared his thoughts with VietTimes, praising VinSpeed’s proposal as highly commendable. According to Attorney Duc, the bold initiative taken by VinSpeed, a subsidiary of the prominent domestic conglomerate Vingroup, reflects their ambitious development aspirations and sense of responsibility toward the nation. Not many enterprises possess such foresight and courage.

“Although VinSpeed is a newly established member of the Vingroup ecosystem, they stand on the shoulders of one of Vietnam’s largest private conglomerates. Vingroup has a proven track record in executing large-scale projects across real estate, industry, and services. This demonstrates their comprehensive financial capabilities, creditworthiness, and ability to mobilize capital domestically and internationally,” Attorney Duc emphasized.

Ministry of Construction to Evaluate the Proposal by May 22nd

On May 15th, the Government Office officially announced the conclusion of Deputy Prime Minister Tran Hong Ha following a meeting to discuss VinSpeed’s proposal for the North-South high-speed rail project. During the meeting on May 12th, representatives from various ministries expressed their initial support, especially in light of Resolution 68-NQ/TW by the Politburo, which encourages private sector participation in key infrastructure sectors, including rail transport.

The Deputy Prime Minister instructed the ministries to expedite the completion of reports and evaluations of the proposal by May 22nd. The Ministry of Construction plays a pivotal role in consolidating all opinions before submitting them to the competent authority at the upcoming National Assembly session.

Concurrently, VinSpeed is tasked with refining their proposal, providing a comprehensive analysis comparing public and private investment options, and demonstrating the feasibility and superior benefits of their proposed private investment model.

A notable aspect of VinSpeed’s proposal is the plan for full private investment, coupled with certain special mechanisms such as interest-free borrowing from the state for 35 years and a 99-year project exploitation period. However, the Deputy Prime Minister emphasized the need for rigorous evaluation and strict adherence to procedures, ensuring that these options are thoroughly assessed and ultimately decided by the National Assembly.

The project is estimated to cost approximately VND 1,562 trillion (around USD 61.35 billion), or USD 67.3 billion including land clearance and resettlement costs. VinSpeed intends to mobilize 20% of the capital independently.

For the remaining 80%, VinSpeed proposes to borrow from the state with a 0% interest rate over an extended period, alleviating pressure on public finances and ensuring the project’s financial viability.

The high-speed rail line is designed to facilitate swift travel between Hanoi and Ho Chi Minh City, with a maximum speed of 350 km/h, making the dream of “having breakfast in Hanoi and lunch in Ho Chi Minh City” a reality.

VinSpeed aims to commence construction before December 2025 and complete the project by December 2030, five years ahead of the government’s initial target (commencement before 2030, substantial completion by 2035, and full completion by 2045).

Beyond constructing the rail line, VinSpeed envisions developing a domestic railway industry, encompassing the production of locomotives and carriages, signaling systems, and high-caliber human resource training. The company is actively collaborating with leading industrial partners from Japan, Germany, and China to acquire cutting-edge technology.

In parallel, VinSpeed plans to establish smart cities following the transit-oriented development (TOD) model at station areas, in collaboration with Vingroup and Vinhomes. This holistic approach will create a synergistic ecosystem, enhancing the project’s value and ensuring sustainable revenue streams.

VinSpeed, a newcomer to the ecosystem founded by billionaire Pham Nhat Vuong, with a charter capital of VND 6,000 billion, is solidifying its position in critical infrastructure investment. The North-South high-speed rail project is expected to become a new symbol of Vietnam’s transportation development in the next decade, materializing the dream of swift and convenient travel between the country’s two major cities.