VinSpeed, a company established by Vietnam’s wealthiest individual, Pham Nhat Vuong, has unveiled an ambitious plan to construct a North–South high-speed railway, projected to cost a staggering VND1.56 quadrillion (US$61 billion). This monumental project aims to be completed by 2030, setting the stage for Vietnam’s modern railway industry while invigorating regional economies.
As part of its investment strategy, VinSpeed, nestled within the ecosystem of Vingroup—Vietnam’s largest private corporation—has committed to covering 20% of the total investment, which equates to roughly $12.27 billion. To fund the remaining 80%, VinSpeed has proposed to secure zero-interest loans from the state budget, repayable over 35 years, not counting expenses related to land clearance such as compensation and resettlement.
With a charter capital of VND6 trillion (US$231 million), VinSpeed is ambitious about hitting the ground running, vowing to commence construction by December 2025 and bring the full railway into operation by December 2030.
The firm is also engaging with premier partners from China, Germany, and Japan for technology transfer, focusing on domestic production of locomotives, carriages, and signaling systems. Additionally, VinSpeed plans to rapidly train the workforce to enhance local technical capabilities, promoting Vietnam’s independence in railway development.
To drive revenue and partially finance public investment, VinSpeed will collaborate with Vingroup and Vinhomes to create urban areas adjacent to key railway stations, utilizing the innovative Transit-Oriented Development approach.
Duong Thu Van, a representative of VinSpeed, emphasized the company’s steadfast commitment to this groundbreaking initiative, placing a strong emphasis on innovation, decisive action, and collaborative efforts with domestic businesses to not only develop the railway system but also cultivate a sustainable high-speed rail industry in Vietnam.
Who knew a high-speed journey could also pave the way for fresh urban landscapes?
What is the estimated cost of the North–South high-speed railway project?
The project is estimated to cost VND1.56 quadrillion, which is approximately US$61 billion.
What portion of the funding is VinSpeed responsible for?
VinSpeed has committed to mobilizing 20% of the total investment, or about $12.27 billion.
When is the construction of the railway expected to start?
VinSpeed plans to begin construction by December 2025, with the goal of having the railway operational by December 2030.
