Why Does Ho Chi Minh City Require $450 Million for High-Speed Rail Development?

Ho Chi Minh City has released a progress report on its urban railway projects, with a key focus on land clearance for the North-South high-speed rail line.

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The Ho Chi Minh City Department of Construction has recently reported to the Ministry of Construction on the progress of urban railway projects in the area. This update serves the upcoming meeting of the Steering Committee for Key Projects and Nationally Important Projects in the Railway Sector.

According to the approved plan, the urban railway network across the merged region (Ho Chi Minh City – Binh Duong – Ba Ria Vung Tau) will span approximately 1,012 km in total length.

Regarding the North-South high-speed railway project, Ho Chi Minh City has tasked the investor with implementing compensation, support, and resettlement efforts. Simultaneously, preparations are underway for the construction of technical infrastructure in the Long Buu resettlement area (Phase 2) using the city’s public investment funds. The goal is to complete land clearance by 2026. In 2025, the city is not requesting central funds for this task but has proposed that the Ministry of Construction compile a report to allocate 10.8 trillion VND from the central budget in 2026 for land clearance purposes.

Metro Line 2 (Ben Thanh – Tham Luong) is currently undergoing final approval procedures and adjustments to its feasibility study report, with construction expected to begin in January 2026. Additionally, the city is collaborating with Dong Nai Province to update the Thu Thiem – Long Thanh route in relevant planning documents. They aim to submit it to the People’s Councils of both localities for approval, designating Ho Chi Minh City as the implementing authority under a PPP model, with completion targeted for 2030.

For the Ho Chi Minh City – Can Tho national railway, the My Thuan Project Management Board is preparing a pre-feasibility study report, which is expected to be submitted to the National Assembly for approval in late 2025, with construction starting in 2027. The Bien Hoa – Vung Tau route is in the pre-feasibility study phase for the 2026-2035 period. As for the Bau Bang – Cai Mep route, Ho Chi Minh City and Dong Nai Province are coordinating to assign Becamex IDC Corporation to conduct investment research under a PPP framework.

According to the approved plan, the urban railway network across the merged region (Ho Chi Minh City – Binh Duong – Ba Ria Vung Tau) will span approximately 1,012 km in total length. The city is currently reviewing the general planning until 2040, with a vision to 2060, updating the system of stations, depots, TOD areas, and urban underground spaces.

Several special mechanisms and policies for urban railway development have been issued, including Resolution 188/2025/QH15, the 2025 Railway Law, and Decree 123/2025/ND-CP. Ho Chi Minh City has also established a Steering Committee for Urban Railway Network Development, streamlined personnel after administrative boundary mergers, and issued regulations and work programs.

The City People’s Council has allocated preparatory investment funds for seven metro lines listed by the National Assembly. The Urban Railway Management Board is implementing consulting packages to carry out investment preparation procedures.

Metro Line 1 (Ben Thanh – Suoi Tien) began commercial operations in December 2024, achieving an average daily ridership of over 53,000 passengers.

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