In a recent development, the Vingroup conglomerate has submitted a proposal to the People’s Committee of Ho Chi Minh City regarding the investment in a railway project connecting the city center to Can Gio.
To ensure focused and efficient investment, Vingroup has joined forces with various Vietnamese organizations and individuals, including the chairman of Vingroup’s board of directors, to establish VinSpeed, a high-speed railway development company.
According to Vingroup, the formation of VinSpeed aims to centralize and efficiently invest in projects, with the aspiration to contribute to the development of the national railway system. This aligns with Resolution 68 of the Political Bureau on private economic development.
VinSpeed’s mandate includes investing in, constructing, and operating high-speed railway infrastructure, as well as manufacturing railway vehicles and signal systems.
Notably, Vingroup has proposed a purely private investment model, excluding any utilization of state budget funds.
Initially, the project was envisioned as a public-private partnership (PPP) with a Build-Own-Operate (BOO) contract. However, after a legal review and practical considerations, Vingroup proposed a shift to direct investment under the current Investment Law. This not only streamlines procedures but also demonstrates Vingroup’s strong commitment to resource allocation and project timeline adherence.
Vingroup eagerly anticipates the People’s Committee’s consideration and approval, along with guidance and coordination from relevant units to facilitate the project’s timely completion.
Previously, the People’s Committee of Ho Chi Minh City had approved Vingroup’s proposal to study and develop a pre-feasibility study for the urban railway project connecting the city center to Can Gio under the PPP model. Vingroup was responsible for self-balancing the study’s financing, without utilizing the city’s budget. In the event that the pre-feasibility study was not approved, the investor would bear the risks and expenses incurred.
The railway line connecting Ho Chi Minh City to Can Gio is approximately 48.7 km long. It commences from Nguyen Van Linh Street (between the intersection with Nguyen Thi Thap and Ly Phuc Man Streets in District 7), continues on Nguyen Luong Bang Street, and ends in the Rừng Sác forest, adjacent to the 39-hectare land plot of the Can Gio sea reclamation urban area project.
Constructing an urban railway connecting Ho Chi Minh City’s center to Can Gio will bolster eco-tourism and coastal urban development, promising a significant boost to the region’s socio-economic growth. Additionally, the project is expected to alleviate road traffic congestion, enhance connectivity, and elevate the quality of life for residents.
The People’s Committee of Ho Chi Minh City has entrusted the Department of Finance to take the lead, collaborating with specialized departments, units, and localities, while also drawing on the insights of scientists and railway experts, to guide Vingroup throughout the research and pre-feasibility study development process.
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