An AI-generated vision
On May 14, 2025, VinSpeed High-Speed Railway Development and Investment Joint Stock Company officially registered to invest in the North-South high-speed railway project.
The project has an investment capital of approximately VND 1,562 thousand billion (equivalent to approximately USD 61.35 billion), excluding compensation, support for relocation, and resettlement costs for land clearance.
VinSpeed proposes to be responsible for arranging 20% of the project’s total investment capital, equivalent to VND 312,330 billion (approximately USD 12.27 billion).
For the remaining 80% (excluding compensation, support for relocation, and resettlement costs for land clearance), VinSpeed proposes to borrow from the State at a 0% interest rate for 35 years from the date of disbursement.
As soon as the information about VinSpeed – a member of the Vingroup ecosystem, founded by billionaire Pham Nhat Vuong – proposing to invest in the North-South high-speed railway project was released, there were many mixed opinions from the public.
Many people doubt VinSpeed’s capacity as it is a newly established company with no experience in participating in a project valued at nearly USD 70 billion, along with concerns about VinSpeed’s proposals, such as borrowing 80% of the capital at a 0% interest rate for 35 years.
Sharing about this issue, Ms. Dao Thuy Van, Deputy General Director of VinSpeed High-Speed Railway Development and Investment Joint Stock Company, said that according to VinSpeed’s proposal, the State only lends capital and does not invest.
The approved plan in November 2024 showed that the State invested USD 61.35 billion, excluding compensation, support for relocation, and resettlement costs for land clearance, and according to calculations by leading experts in this field, the payback period could be up to 70 years.
VinSpeed’s proposal, on the other hand, is for the State to lend 80%, equivalent to VND 1,249,600 billion (approximately USD 49.08 billion) at 0% interest for 35 years, while VinSpeed will have to borrow and bear interest for the remaining 20%, equivalent to approximately VND 312,330 billion or USD 12.27 billion.
Thus, VinSpeed takes on 20% of the total investment capital and bears the interest for that amount, while also committing to repay the State’s loan in full after 35 years. Essentially, the State does not have to invest any capital in this project.
Regarding the payback period, according to VinSpeed’s research, 98% of high-speed railways worldwide operate at a loss, with only 2% being profitable. Moreover, according to experts, after about 30 years of operation, tens of billions of dollars will be needed for maintenance and upgrades. If VinSpeed undertakes this project, the state budget will not have to bear these financial pressures.
Ms. Van also said that the North-South high-speed railway is very long and passes through many localities with low income, so it is extremely difficult to recover the capital through business exploitation. That is why the exploitation period must be long enough to offset the construction and operation costs.
According to Ms. Van, VinSpeed shares the same founder as Vingroup, billionaire Pham Nhat Vuong. Previously, Vingroup had registered to invest in other high-speed railway projects, so they are no strangers to this field. Currently, VinSpeed is negotiating with partners from China, Germany, and Japan to transfer technology and produce locomotives, carriages, and signal and control systems in Vietnam.
VinSpeed’s proposal to invest in the North-South high-speed railway project is a concrete action to realize the Resolution No. 57-NQ/TW on promoting science, technology, innovation, and national digital transformation; and Resolution No. 68-NQ/TW on developing the private economy by the Party and the State. VinSpeed determines that this will be a long-term contribution project over decades.
The separation of VinSpeed by billionaire Pham Nhat Vuong aims to separate the difficulties from Vingroup, ensuring no impact on the group’s shareholder interests.
VinSpeed has a charter capital of VND 6,000 billion. The founding shareholders include the following organizations and individuals: Vingroup contributes VND 600 billion, holding 10% of the shares; Vietnam Investment Group Joint Stock Company contributes VND 2,100 billion, holding 35% of the shares; Ms. Pham Thuy Hang, Vice Chairwoman of Vingroup, contributes VND 180 billion, holding 3% of the shares; Mr. Pham Nhat Vuong contributes VND 3,060 billion, holding 51% of the shares; and Mr. Vuong’s two sons, Pham Nhat Minh Hoang and Pham Nhat Quan Anh, each contribute VND 30 billion, holding 0.5% of the shares each.
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