Transport Vietnam Considers VinSpeed's $61 Billion High-Speed Railway Proposal

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Vietnam's government is evaluating a substantial proposal from VinSpeed to invest in a $61 billion North-South high-speed railway. If realized, this project could significantly alter the country's transport infrastructure.

 

Deputy Prime Minister Tran Hong Ha has urged relevant ministries to submit their written feedback by May 19. The collated input will contribute to a comprehensive report intended for government leaders and the National Assembly.

 

VinSpeed, established by Vingroup's chairman, Pham Nhat Vuong—Vietnam's wealthiest individual—plans to initiate construction by December 2025, targeting an operational launch by December 2030.

 

Deputy PM Ha emphasised that a Politburo resolution advocates for increased private-sector involvement in significant national projects such as high-speed rail, with most ministries supporting the proposal in principle. However, any changes in investment models or application of unique policy mechanisms must undergo careful review by pertinent authorities, including the National Assembly.

 

The Ministry of Construction is spearheading the review process, tasked with integrating feedback and drafting a resolution to pilot specific mechanisms for railway development, due by May 22. In conjunction, ministries including Finance, Justice, Natural Resources and Environment, and the State Bank of Vietnam are examining the legal and financial feasibility of moving from public to private investment models. Notably, the State Bank will assess VinSpeed's request to exclude the project's debt from Vingroup’s total outstanding loans.

 

VinSpeed must deliver a detailed comparative analysis of public versus private investment models, showcasing its private-led approach as more viable, efficient, and punctual. The company is also expected to collaborate with authorities to finalize proposed special mechanisms for further evaluation.

 

If the proposal receives approval, VinSpeed will fully execute the project and spearhead the development of an accompanying industrial ecosystem around the high-speed rail sector. The ambitious project is estimated to cost over VND1.5 quadrillion ($61.35 billion), excluding compensation and resettlement expenses. VinSpeed has committed to contributing 20% of the capital ($12.27 billion) and proposes borrowing the remainder interest-free from the state, with a repayment period spanning 35 years.

 

  Adapted by ASEAN Now from VN Express 2025-05-16