Unlocking Vietnam’s Potential: Strategic Steps to Make High-Speed Rail a National Icon

Clear Standards, Reduced Barriers

Speaking at a seminar during the first International Exhibition on Modern Railway Technology and Infrastructure Supply Chain in Vietnam 2025, held on the afternoon of November 12, Mr. Thilo Weigel, representative of LogoMotive GmbH (Germany), a railway-specialized design consultancy firm, emphasized that developing a modern railway system cannot solely rely on selecting contractors with financial capability. More importantly, it requires choosing the right contractor with system compatibility and a clear understanding of technical requirements from the outset.

Drawing from years of experience consulting on European railway projects, Mr. Weigel warned that many international projects have been canceled or faced costly adjustments due to the lack of a “quality requirement specification,” meaning technical standards were not fully defined before contractor selection.

For high-speed projects like Vietnam’s North-South High-Speed Railway, these factors are even more critical. “The faster the train, the greater the technical risks. Vietnam must establish clear, unified, and appropriate technical specifications, standards, and regulations from the beginning—a prerequisite for transparent and efficient international bidding,” said Mr. Weigel. He added that early technical standard determination not only serves as a technical requirement but also as a “common language” to build trust among international businesses entering the Vietnamese market.

Beyond technical aspects, the LogoMotive expert highlighted the often-overlooked cultural barriers in project management. “Decision-making processes, implementation timelines, and even communication styles differ significantly between Asia and Europe. Failure to reconcile these differences can lead to coordination risks and project delays,” shared Mr. Weigel.

Need for Strict Capability Criteria and International Standard Contracts

Mr. Nilanjan Sen Gupta, representative of Deutsche Bahn Engineering (Germany), a consulting and engineering unit under the German National Railway Corporation, stressed that for competitive international bidding, Vietnam must adopt internationally recognized standard contracts, such as FIDIC, commonly used in state-funded projects.

“Capability criteria must be stringent enough to exclude unserious or technically incompetent businesses. Without a clear screening mechanism, attracting reputable global investors will be challenging,” stated Mr. Gupta.

According to Mr. Gupta, alongside technical capability, financial transparency is mandatory. No international company will engage in a project with unclear funding. “Financial transparency is how Vietnam demonstrates professionalism and trustworthiness in the global market,” he noted.

Experts also called for ending fragmented procurement, moving toward integrated system synchronization between infrastructure, equipment, and vehicles. Vietnam needs to establish a common national data standard to ensure system compatibility and efficient information sharing.

Acknowledging international expert feedback, Mr. Nguyễn Tiến Thịnh, Deputy Director of Vietnam Railway Authority, Ministry of Construction, confirmed that the recommendations have been seriously noted and will guide Vietnam in refining the selection process for major railway projects, particularly the upcoming North-South High-Speed Railway.

Mr. Thịnh emphasized that Vietnam must innovate in risk management, integrating operational intelligence into development strategies. “Investing solely in infrastructure or individual vehicles results in high lifecycle costs. Operational intelligence investment from the outset optimizes the entire cycle—from design to maintenance,” he stressed.

Currently, the Vietnam Railway Authority is collaborating with relevant agencies to develop specific policies on standards, taxation, and finance, supporting technology transfer and the formation of a modern railway industry.

Experts emphasized that creating a transparent and stable environment is the best way for Vietnam to select truly capable businesses, rather than relying solely on low bids. The government is expected to play a central role in removing data barriers, perfecting legal frameworks, and establishing an open market where domestic and international businesses can jointly invest, innovate, and develop railway technology.

To attract top contractors, Vietnam must first establish clear standards, transparent mechanisms, and a systemic mindset. This is essential for the North-South High-Speed Railway to become a symbol of modern infrastructure integration…