High-Speed North-South Rail: Who Has the Might to Shoulder This Endeavor?

There has been a recent proposal from several private enterprises to invest in the North-South high-speed railway, and expert Nguyen Minh Phong emphasizes the joy he and others feel about the private sector’s willingness to take on such a significant national responsibility. This aligns with the spirit of Resolution 68.

If society unanimously agrees and the state implements favorable policies, allowing private enterprises to successfully develop the North-South high-speed railway, it will be the most significant breakthrough and the most convincing proof of the Party’s policies regarding the private sector in the future.

However, a “filter” is still necessary to select qualified domestic private investors.

“More is not always merrier; too many participants without proper coordination can cause interference, prolong the investor selection process, and result in missing golden opportunities and increased costs,” Mr. Phong emphasized.

“Additionally, we cannot turn this vital national project into a playground for all enterprises to ‘test their strength,’ only to bear the risks later,” he added.

“In business, enterprises can either win or lose. But for this once-in-a-century project that will determine the country’s future and standing, we can only afford to win!”

According to Mr. Phong, undertaking a monumental project like the North-South high-speed railway requires more than just enthusiasm; it demands strategic vision, organizational capabilities at the upper level, and administrative prowess at the operational level.

High-speed railways are not experimental projects or playgrounds for daring entrepreneurs. They are complex infrastructure ecosystems that require the integration of advanced technology, precise engineering down to the millimeter, synchronized operations, and stringent safety protocols. Even a minor error can lead to severe consequences involving lives, property, and social trust.

Echoing this sentiment, economic expert Vu Dinh Anh emphasizes that beyond enthusiasm, the most critical aspect of such a monumental national project is economic, financial, and social feasibility to ensure it lives up to its meaning as the backbone, positively impacting dozens of related industries.

Who Has the Shoulders to Be the Sole “Conductor”?

Many economic experts agree that for a century-defining mega-project like the North-South high-speed railway, the optimal approach when choosing a private enterprise as the investor is to select a sole conductor with sufficient capabilities and the highest responsibility. This arrangement allows for quicker decision-making under the state’s strict supervision.

Conversely, if the project is fragmented and implemented in separate segments, there is a risk of a lack of synchronization, delays, cost overruns, and a loss of strategic development opportunities for the country.

Specifically, the state needs to establish fundamental principles and comprehensive, consistent criteria for selecting project contractors. The chosen enterprise should have solid financial capabilities, substantial capital mobilization capacity, technological expertise, experience in implementing large-scale infrastructure projects swiftly, and a strong commitment to feasible scenarios that balance objectives, interests, and specific responsibilities and obligations.

Economist Le Dang Doanh believes that the enthusiasm of private enterprises to engage in national key projects is a positive sign. However, he cautions that their capabilities must be carefully assessed.

“We should mobilize all domestic resources, but we need a highly specialized council to evaluate the capabilities of these enterprises. From there, we can choose a sole conductor with sufficient capabilities to undertake this project,” Mr. Doanh emphasized.

Emphasizing the need to find a capable domestic enterprise for the North-South high-speed railway project, expert Nguyen Xuan Thuy expresses confidence in VinSpeed, a part of the Vingroup ecosystem.

“VinGroup is renowned for its extensive experience in developing large-scale projects. They also possess scientific research and technological capabilities. Financially, they have the resources to access and acquire foreign technologies. Therefore, I believe this enterprise is fully capable of executing key projects,” Mr. Thuy analyzed.

Similarly, Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking at Nguyen Trai University, agrees that a leading Vietnamese private conglomerate like Vingroup proposing to participate in a national key project like the North-South high-speed railway carries strategic significance and advantages.

Firstly, Vingroup has a proven track record of delivering large-scale projects on time, as evidenced by their rapid and efficient execution of projects such as Vinhomes, Vincom, Vinmec, Vinschool, and especially VinFast, a global-scale electric car manufacturing complex developed in a short period. This showcases their exceptional organizational, resource mobilization, and progress management capabilities, which are crucial in large-scale infrastructure projects like high-speed railways.

Moreover, Vingroup boasts robust and flexible financial mobilization capabilities. With substantial total assets and the ability to raise capital domestically and internationally, Vingroup can participate as an investor or form joint ventures with domestic and foreign partners.

Notably, Vingroup embraces innovation, technological application, and long-term vision. VinFast is a prime example of their disruptive thinking and “leapfrog” strategy. This demonstrates that Vingroup is not merely an infrastructure investor but also aspires to technological advancements, connectivity, and global value chains. By applying this mindset to railway transportation, they can introduce modern approaches, integrate digital technology, ancillary services, and logistics, thereby elevating the nation’s transportation ecosystem.

“I believe that Vingroup has the capabilities to undertake the North-South high-speed railway project,” Mr. Huy stated.

Economist Nguyen Minh Phong agrees that if we were to “compare the sticks to find the tallest,” VinSpeed, backed by Vingroup, one of the largest private conglomerates in Vietnam and a well-known brand in Southeast Asia, would be the most reliable choice. They have a proven track record of executing and operating large-scale national projects recognized internationally.

“Vingroup has earned the trust of investors and the public and has weathered many storms, achieving notable successes that have garnered respect domestically and internationally,” Mr. Phong emphasized.

“This is a crucial factor in ensuring successful leadership and execution for a project of national symbolic value that requires international support, such as the North-South high-speed railway,” he added.