High-Speed North-South Railway Proposal: Why Choose VinSpeed?

“The Powerhouse Private Group’s Offspring”

VinSpeed is a proud member of the Vingroup ecosystem, one of the largest private conglomerates in Vietnam. Vingroup’s diverse portfolio spans across real estate, electric vehicles, tourism, healthcare, and more. In recent years, the group has expanded into new sectors such as renewable energy, robotics, and high-speed rail.

In 2024, Vingroup recorded impressive figures with a revenue of 189.068 trillion VND and a net profit of 5.276 trillion VND. As of March 31, 2025, Vingroup’s total assets amounted to 823.270 trillion VND.

Vingroup’s ecosystem boasts six listed companies on the stock exchange: Vingroup (HoSE: VIC), Vinhomes (HoSE: VHM), Vinpearl (HoSE: VPL), Vincom Retail (HoSE: VRE), Vietnam Exhibition Fair Center JSC (UPCoM: VEF), and Vietnam Book Company (UPCoM: VNB).

Additionally, VinFast, a Vingroup subsidiary, is listed on the Nasdaq with a market capitalization of over 8.4 billion USD (equivalent to 217,741 billion VND). VinFast has made its mark in the electric vehicle industry and continues to gain traction.

Turning our attention to VinSpeed, the company behind the proposed North-South high-speed rail project, has a chartered capital of 6,000 billion VND. Mr. Pham Nhat Vuong, Chairman of Vingroup and Vietnam’s richest man according to Forbes, is the largest shareholder of VinSpeed.

What sets VinSpeed apart is the diverse range of investors, including billionaire Pham Nhat Vuong, his family, and entities within the Vingroup ecosystem. Mr. Vuong contributes 3,060 billion VND, accounting for 51% of the shares. His two sons each hold 0.5%, while his sister-in-law, Ms. Pham Thuy Hang, owns 3%.

Vingroup, as a group, invests 600 billion VND (10%), while Vietnam Investment Group, a closely related entity, holds the remaining 35% stake.

The establishment of VinSpeed showcases Mr. Vuong’s commitment to investing in Vietnam’s critical infrastructure projects. With a 51% stake, Mr. Vuong has the decisive authority in all strategic decisions pertaining to the company.

Dr. Le Xuan Nghia, a renowned expert, shared his thoughts on VinSpeed, stating that while it may be a new name, the company is backed by billionaire Pham Nhat Vuong and his diverse business ecosystem. Therefore, VinSpeed carries the Vingroup seal of excellence.

Dr. Nghia emphasized the proven track record of companies under Mr. Vuong’s leadership, highlighting their impressive execution of infrastructure projects, including the construction of the VinFast automobile factory in just 21 months, the ahead-of-schedule completion of the Ring Road 2, and the swift development of a national-scale exhibition and convention center in just 10 months.

” Before VinFast, few believed that Vietnamese could manufacture automobiles, but now they are the top-selling brand in the market with a localization rate of nearly 70%. I firmly believe that VinSpeed carries this same DNA of achievement,” Dr. Nghia added.

Mr. Nguyen Quang Huy, CEO of Finance and Banking at Nguyen Trai University, echoed similar sentiments, stating that VinSpeed’s interest in the North-South high-speed rail project aligns with the government’s encouragement of private enterprises to venture into leading industries.

Furthermore, Mr. Huy noted the importance of harmoniously combining reputable and potent private economic groups and designing a cooperative investment ecosystem with international reach. This collaborative approach will enhance implementation capabilities and foster mutual benefits for the nation and its people.

” VinSpeed’s proposal demonstrates the proactive spirit of domestic enterprises willing to take on iconic national projects, signaling their robust potential and ambitious development aspirations,” Mr. Huy emphasized.

Financial Strategy for a Mega Project

The North-South high-speed rail project carries a hefty price tag of approximately 1,562 trillion VND (roughly 61.35 billion USD), excluding compensation, relocation, and resettlement costs for land clearance.

VinSpeed has proposed to take responsibility for arranging 20% of the total investment for the project, amounting to 312.33 trillion VND (approximately 12.27 billion USD). For the remaining 80% (excluding compensation, relocation, and resettlement costs), VinSpeed suggests a non-interest-bearing loan from the state for a period of 35 years from the disbursement date.

Elaborating on this proposal, Ms. Dao Thuy Van, Deputy General Director of VinSpeed, clarified that in their proposal, the state would only provide a loan and not invest directly. This approach differs from the approved plan from November 2024, which indicated a state investment of 61.35 billion USD, excluding compensation, relocation, and resettlement costs, with a repayment period of up to 70 years, as calculated by leading experts in the field.

In contrast, VinSpeed’s proposal involves the state lending 80%, equivalent to 1,249.6 trillion VND (approximately 49.08 billion USD), at a zero-interest rate for 35 years. VinSpeed would independently secure the remaining 20%, or approximately 312.33 trillion VND (12.27 billion USD), through external borrowing and would be responsible for the interest on this portion. Essentially, VinSpeed is taking on the burden of interest for the entire project.

Furthermore, VinSpeed has committed to repaying the state’s loan in full after 35 years. This arrangement means that the state would not need to allocate any funds for this project.

When it comes to repayment, it’s worth noting that 98% of high-speed rail lines worldwide operate at a loss, with only 2% turning a profit. Additionally, according to experts, significant investments in the tens of billions of USD are required every 30 years for maintenance and upgrades. By engaging VinSpeed, the state budget can be relieved of these financial pressures.

Assessing this financial proposal, Associate Professor Dr. Hoang Van Cuong, former Vice Rector of the National Economics University, offered his insights: “In terms of financial budgeting, this proposal is more advantageous for the state budget. It represents the state’s support for private enterprises to undertake tasks that the state would otherwise have to manage.”

Dr. Cuong further emphasized the importance of encouraging and promoting private economic development to share the burden of implementing programs and development goals, rather than solely relying on public investment.

However, he cautioned that even with private investment, the North-South high-speed rail, as critical infrastructure, must adhere to state requirements. Private investors should prioritize localization and the development of the railway industry. Once the project is completed, the operation must align with the state’s orientation and principles, especially in addressing logistics bottlenecks.

According to experts, VinSpeed’s financial proposal strikes a balance between state interests and enterprise motivation. Associate Professor Dr. Tran Dinh Thien commented, ” We cannot expect private enterprises to take on everything without providing reasonable risk-sharing mechanisms.” He further emphasized the necessity of offering special mechanisms, including preferential loans, coupled with transparent control mechanisms and progress commitments, to foster a strategic leap in Vietnam’s infrastructure and industry.

Sharing a similar perspective, Lawyer Truong Thanh Duc, Director of ANVI Law Firm, stated that the zero-interest loan is not a privilege or a means to “rescue” enterprises. Instead, it is a way to implement an infrastructure project that the state should fully invest in.

” Involving the private sector, even with preferential treatment, is to share the investment burden, accelerate progress, and improve management efficiency,” Mr. Duc added. He also highlighted that this project is not merely about transportation but serves as a driving force for comprehensive socio-economic development. The state can consider these far-reaching benefits as an indirect contribution to the total investment.