Vingroup CEO Proposes 80% Loan for High-Speed Rail Project, Repayable Over 30 Years

On the morning of November 27th, Deputy Prime Minister Nguyen Hoa Binh chaired a meeting with leaders from various ministries, sectors, and businesses regarding the North-South High-Speed Railway Project.

Attending the meeting were Deputy Prime Minister Tran Hong Ha; Minister of Construction Tran Hong Minh; Governor of the State Bank of Vietnam Nguyen Thi Hong; Minister of Justice Nguyen Hai Ninh; leaders from the Ministries of Finance, Science and Technology; and representatives from prominent companies such as Vietnam 3000 LLC – Vietnam Investment and Development Group, Discovery Group JSC, Vietnam Railway Transport JSC, Truong Hai Group Corporation, and VinSpeed High-Speed Railway Investment and Development JSC.

The government organized this consultation meeting with businesses not only to directly hear their plans and solutions but also to assess the genuine capabilities and intentions of investors. Through this consultation, accurate and comprehensive information will be provided to the public, helping to distinguish between businesses with serious intentions and adequate capabilities from those making unfounded claims. This step is essential to gather all necessary information before deciding on the most feasible and effective investment method.

At the meeting, Mr. Nguyen Viet Quang – Vice Chairman and CEO of Vingroup, the parent company of VinSpeed – expressed interest in investing in the project under a business investment model. The total investment is projected to exceed $61 billion (excluding land clearance costs), with a construction timeline of 5 years from the time the government provides cleared land for the project.

VinSpeed requested a loan covering 80% of the project’s investment, to be repaid over 30 years, and committed to the following: strict compliance with legal regulations, especially those related to borrowing; investment in modern technology and equipment to enhance local railway industry capabilities; workforce training and development for both project execution and operation; ensuring national security and defense requirements; and accepting certain business risks, with a particular commitment to avoiding cost overruns.

Additionally, VinSpeed pledged to invest in research and development of high-speed railway technology, aiming not only to master transferred technology from foreign partners but also to create new technological value for Vietnam.

Mr. Nguyen Viet Quang highlighted five key benefits if VinSpeed directly invests in the project: First, the government only needs to lend 80% of the total investment instead of funding 100%. Second, the government will recover 80% of the loan within 30 years, rather than waiting over 140 years or longer. Third, the system will be operational within 5 years instead of 10, boosting economic growth, improving transportation convenience, reducing travel costs, and enhancing the livelihoods of communities along the route. Fourth, the government will not face cost overruns or project delays. Fifth, the government will develop a high-speed railway industry without direct investment.

In concluding the meeting, Deputy Prime Minister Nguyen Hoa Binh emphasized the project’s immense scale and importance to the economy, noting its high technological requirements. He stressed the necessity of information exchange with businesses to understand their intentions and assess their seriousness. This meeting is not for selecting investors but for gathering input to refine investment proposals and policies. The Ministry of Construction, in collaboration with the Ministry of Finance, the State Bank of Vietnam, and other relevant agencies, is tasked with expediting a comprehensive report for government review. This report will serve as a critical foundation for discussions and decisions by competent authorities.