An Open Letter from Billionaire Tran Ba Duong: THACO’s Proposal to Invest in the High-Speed North-South Railway Project Valued at US$61.35 Billion

Specifically, according to Mr. Tran Ba Duong, after thoroughly studying the High-Speed Rail Project on the North-South axis, on May 26, 2025, THACO sent a document to the Prime Minister and Deputy Prime Minister proposing to invest in the high-speed rail project on the North-South axis.

While THACO’s proposal is being considered by the Government and competent authorities, in recent days, many shareholders, partners, and a number of employees, as well as public opinion, have had many questions related to the content of the document.

He answered in a general way about the capital structure and the method by which THACO mobilizes capital to implement the project:

The total investment capital for the project (approved by the National Assembly and excluding site clearance and compensation costs, which will be carried out by the State) is approximately VND 1,662,000 billion, equivalent to about USD 61.35 billion. In Document No. 188/2025/CV-THACO, the proposed investment capital is about VND 1,662,000 billion, equivalent to about USD 61.35 billion. At the same time, in the phase of preparing the feasibility study report and when the basic design is approved, THACO will research and propose solutions to maximize optimization of the project’s investment capital while ensuring the project’s objectives.

THACO has proposed to establish a project company in which THACO holds a controlling stake of 51%, taking the main responsibility for managing, operating, and running the project in the best way. At the same time, we invite private enterprises and state-owned enterprises (designated by the State) to participate in up to 49% of the capital, with the principle that all shareholders have obligations and rights in the project in proportion to their ownership ratio.

The project enterprise is responsible for arranging 20% of the total investment capital, equivalent to about VND 312,000 billion (equivalent to about USD 12.27 billion), of which THACO is responsible for arranging VND 159,120 billion, equivalent to about USD 6.26 billion.

The remaining 80% of the total investment capital (equivalent to about USD 49.08 billion) will be mobilized from credit institutions inside and outside the country, with a proposal for the Government to guarantee and support the interest rate for 30 years. The repayment of this capital to the credit institutions will be made by the State in accordance with the signed financial plan.

Both of these capital sources will be disbursed according to the project’s investment progress over a period of 7 years (from the time the State hands over the cleared site) with a commitment not to use the borrowed capital (accounting for 80% of the total investment capital guaranteed and supported by the State) for other purposes.

Regarding the arrangement and mobilization of capital for which THACO is responsible as mentioned above, in 7 years, on average, VND 22,730 billion/year, equivalent to USD 860.8 million/year to over USD 1 billion/year (according to THACO’s calculation, starting from 2027) will come mainly from increasing capital and selling shares in THACO and its member groups to meet the capital mobilization for the project.

In addition, if necessary, THACO can use a large part of its annual post-tax profit (estimated at VND 15,000 billion/year) to contribute capital to the project.

Thus, THACO will contribute a minimum of 51% of the capital, equivalent to VND 159,120 billion, or about USD 6.26 billion, and can contribute up to 20% of the project’s total investment capital.

According to Mr. Tran Ba Duong, the North-South high-speed rail project is a very large-scale project, with many technological and technical challenges and high requirements for safety and security. However, if successful, through this project, THACO and the Vietnamese business community will be able to develop and build metallurgical, heavy and precision mechanical, digital, signal, and electrical industries.

THACO must humbly invite Vietnamese enterprises to participate in the project in a spirit of learning through serious technology transfer and practice, ensuring all requirements and standards of the project (such as some component projects and jobs in management and operation related to security and safety must be undertaken by state-owned enterprises).

This project does not directly bring profits, but it will help THACO and Vietnamese enterprises develop in the direction of industry and technology, thereby narrowing the gap with countries in the region and the world in the context of integration.

He also shared that in the near future, if requested by the Government, THACO will submit a detailed and specific project proposal, honestly and humbly presenting its capacity and qualifications, while demonstrating its highest efforts and determination in the spirit of contributing to an important project for the country. THACO hopes that the proposal it submits to the Government for consideration will bring practical benefits to the enterprise assigned the task of implementing it.

In his position as the leader, he commits to managing and operating the project well and not weakening the production and business plans in the fields that THACO is implementing but instead complementing THACO’s ecosystem more.