High-Speed Rail Paradox: 70-Employee Firm Bids on $67 Billion Project, While Other Investors Vanish After Registration

On November 27th, at the Government Office, Deputy Prime Minister Nguyen Hoa Binh chaired a meeting with leaders of ministries, sectors, and businesses regarding the North-South High-Speed Railway Project. Attendees included Deputy Prime Minister Tran Hong Ha, Minister of Construction Tran Hong Minh, Governor of the State Bank Nguyen Thi Hong, Minister of Justice Nguyen Hai Ninh, and leaders from the Ministries of Finance and Science and Technology.

Notably, five businesses registered interest in the project: Vietnam 3000 LLC – Vietnam Investment and Development Group, Discovery Corporation, Vietnam Railway Transport JSC, Truong Hai Group (Thaco), and Vinspeed High-Speed Railway Investment and Development JSC.

However, the meeting revealed that it was not merely a session to gather ideas but a “test” of the investors’ financial capacity and seriousness. The businesses’ presentations highlighted stark differences in their capabilities to undertake this massive infrastructure project.

Among the registered businesses, Discovery Corporation stood out. While its leadership expressed interest in investing under a revenue-recovery business model, internal metrics revealed a significant gap compared to the project’s scale. When asked about resources, Mr. Nguyen Nam Thieu, Chairman of Discovery Corporation, confirmed the company has approximately 70 employees and a capital of 2,000 to 3,000 billion VND. This pales in comparison to the project’s estimated total investment of over 60 billion USD.

Similarly, Vietnam 3000 LLC proposed participating as a public-private partnership (PPP) to mobilize capital and expertise. However, when questioned about their capital contribution ratio in the PPP structure or the legal basis for resource mobilization, the company’s representative failed to provide concrete answers, offering a vague explanation.

More concerning was the absence of the Mekolor and Great (USA) investor alliance, despite being on the registration list. Authorities reported unsuccessful attempts to contact them, unable to locate their address.

Vietnam Railway Transport JSC approached the project from a narrower industry perspective, expressing interest in participating primarily in infrastructure related to signaling equipment and the electrical system for high-speed rail operations.

In contrast to the ambiguity of smaller enterprises, two major domestic conglomerates, Thaco and Vinspeed, presented detailed financial plans and construction timelines with specific quantitative data.

Mr. Nguyen Hoang Tuyet, General Director of Thaco, affirmed the company’s desire to participate as an investor and operator under the Investment Law. Regarding capital structure, Thaco proposed a 20% equity contribution from investors, with the remaining 80% financed through loans. The group plans to establish specialized subsidiaries to raise capital from domestic and international partners.

Based on resource calculations, Thaco outlined a phased construction timeline. The Hanoi-Vinh and Ho Chi Minh City-Nha Trang sections are expected to be completed within 5 years, while the Nha Trang-Vinh segment will require 7 years. The company also committed to a high degree of localization and urged the government to promptly issue technical standards for implementation.

On a larger scale, Vinspeed, established specifically for this project, estimated the total investment at over 61 billion USD (excluding land clearance costs). Mr. Nguyen Viet Quang, Vice Chairman and CEO of Vingroup, proposed a 5-year construction timeline from the receipt of cleared land.

Financially, Vinspeed requested an 80% loan mechanism, repayable over 30 years. Notably, Vinspeed committed to bearing business risks and ensuring no cost overruns, a persistent issue in previous public investment projects. The company also emphasized its goal of not only acquiring technology but also developing new, Vietnamese-branded technological solutions.

Concluding the meeting, Deputy Prime Minister Nguyen Hoa Binh provided candid assessments of the registered businesses’ capabilities. He stressed the government’s commitment to fairness, objectivity, transparency, and openness in the evaluation process.

Reflecting on the varied capabilities presented, Deputy Prime Minister Nguyen Hoa Binh stated: “Today’s meeting invited six registered businesses, but only five attended. The Mekolor and Great (USA) investor alliance, despite registering, did not appear, and we couldn’t locate their address. This meeting provided insights into the seriousness and preparedness of the participating businesses.”

Addressing financial capacity, the government leader highlighted the disparity between ambition and reality among some investors: “Some businesses demonstrated serious preparation with detailed reports, while others presented vague ideas and inadequate resources. A company with 70 employees and 2,000-3,000 billion VND in capital cannot meet the project’s requirements.”

This meeting served as a necessary screening process, helping the government and public identify genuinely prepared and capable enterprises for this national key project. The Ministry of Construction will collaborate with the Ministry of Finance and the State Bank to finalize a feasible investment proposal for approval by competent authorities.