Rail Experts Doubt the Feasibility of the Proposed $100 Billion High-Speed Rail Project in Vietnam Let me know if you would like me to tweak it or provide additional suggestions.

In response to the proposal made by the Mekolor (Vietnam) and Great USA Inc. (USA) consortium to develop the high-speed North-South railway project through private investment, and their claim of having arranged $100 billion in investment funds without requiring any counterpart funding from the state budget or government guarantees, Dr. Phan Huu Duy Quoc, Chairman of the Board of Directors of Construction Corporation No.1, expressed his skepticism from a professional standpoint.

Forming a consortium and raising capital require individuals and enterprises to possess credibility and a strong track record. It is challenging for potential partners, especially foreign investors, to place their trust in a company that lacks transparency in terms of revenue, profits, business capabilities, and even has a surprising choice of office location.

“Logically, to mobilize such a substantial amount of money, in this case, hundreds of billions of dollars, the company must possess credibility, experience, and expertise in the field to initiate and lead the fundraising process, regardless of whether the investors are domestic or foreign,”

Dr. Quoc stated.

“Moreover, one cannot claim to invest in a significant transportation project without having the necessary experience, credibility, and expertise in the industry, solely focusing on operational calculations and profit-loss considerations,”

he added.

Architect Vo Kim Cuong, former Deputy Chief Architect and Deputy Director of the Ho Chi Minh City Department of Construction, pointed out that according to legal regulations, bidders must possess the corresponding financial capacity and technical expertise. While some argue that construction capability is not a fundamental requirement for investors, it will be demonstrated throughout their involvement in the project.

An investor’s capabilities are reflected in their ability to mobilize capital, manage operations, and ensure compliance with the law. However, a company lacking credibility and a substantial track record in the industry may struggle to meet these requirements.

It is important to note that bidding involves two critical aspects: pricing and capabilities. Capabilities encompass the company’s operational history, reputation, and the quality of completed projects. In many cases, the winning bidder is not necessarily the one offering the lowest price but the one deemed most capable and competent to execute the project successfully. Therefore, before proposing to invest in a particular project, enterprises must thoroughly assess their capabilities and financial resources, leaving no room for ambiguity.

“I am not referring to the size of the company or its charter capital. However, as a representative of the consortium, you must disclose the identities of your partners and provide clarity on the nature of the consortium itself. The company with a charter capital of 1 billion VND cannot solely bear the responsibility for the project; it is the consortium that assumes this responsibility,”

Mr. Cuong emphasized.

“In my opinion, the government should establish regulations to eliminate entities that cause unnecessary delays. If they fail to provide clear information about the consortium members, the government will have to verify their capabilities and even investigate potential links to corruption, money laundering, and other complex issues,”

he added.

Meanwhile, economist Dinh The Hien asserted that in a market economy, there are tens to hundreds of thousands of enterprises, each with its unique orientation and business objectives. If they violate the law, there are legal consequences. Enterprises have the right to make declarations and participate in any project that aligns with their capabilities, expertise, and business goals. We should respect their choices.

Regarding capital mobilization, it is not just empty talk. If there are violations or profiteering, the law will strictly handle them.

“However, we have witnessed cases of individuals building narratives, making statements to gain fame, and leveraging the media to build their brand, only to disappear afterward. Let’s forget about them and stop contributing to their brand-building efforts,”

Mr. Hien advised.

The high-speed North-South railway project, with a total preliminary investment of approximately 1.7 million billion VND (equivalent to 67 billion USD), was approved by the National Assembly in November 2024. The 1,541-kilometer route will commence from the Ngoc Hoi Station in Hanoi and terminate at the Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces and cities.

The project will be constructed with a double-track standard gauge of 1,435 mm, a design speed of 350 km/h, and an axle load of 22.5 tons. It will include 23 passenger stations and 5 freight stations, catering to passenger transportation needs and facilitating cargo transportation when necessary. The project also serves national defense and security purposes.

So far, two leading private enterprises, VinSpeed and Thaco, have proposed investments in the project.

On June 11, Mr. Vo Xuan Truong posted on his personal Facebook page that he would hold a press conference to announce the $100 billion investment proposal for the North-South High-Speed Railway project.

Mr. Truong stated that to ensure transparency and accuracy of information, the Mekolor – Great USA Consortium would hold a press conference to announce its investment plan. This event would also address the media and public’s questions and concerns directly and present financial and legal evidence, along with clear development orientations and capital mobilization strategies. He emphasized that the consortium is not investing based on dreams or mere concepts but is operating with a real architecture and verifiable data that can be audited and monitored.

The press conference will be held in Hanoi, but the specific time and venue have not yet been announced.