The Vietnamese government has outlined an ambitious plan to develop a high-speed railway network connecting the northern and southern regions of the country. This major infrastructure project, entirely funded and built using domestic technology, aims to reduce reliance on foreign financing and strengthen long-term technological and operational expertise, according to the Ministry of Transport.

The 1,541-kilometer high-speed railway project will span 20 provinces and serve 26 stations, with a total investment of approximately US$67.34 billion. Deputy Minister of Transport, Nguyen Dan Huy, stated that the project will bring a significant transformation to Viet Nam's transportation and economy. The proposal for this project is set to be submitted for approval at the 15th National Assembly session on October 20.

Connecting Cities: Modern Solutions for Viet Nam's Transport

The high-speed railway line will stretch from Ngoc Hoi Station in Hanoi to Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces and cities. The project will link two of Viet Nam's major urban centers, Hanoi and Ho Chi Minh City, each with a population of around 10 million, along with 17 other cities with populations exceeding 500,000.

Along the railway line, 23 passenger stations will be constructed, with station intervals of around 50-70 kilometers, as well as five freight stations to support logistics operations and national defense needs.

With operational speeds of up to 350 kilometers per hour, this high-speed railway will provide an efficient and modern transportation solution for the Viet Namese people. The project will drastically reduce travel time between the two major cities, cutting the journey from up to 30 hours to less than 6 hours.

Expected to be Completed in 2035

Viet Nam’s decision to fully fund this project through medium-term public investment reflects the government’s confidence in the country’s economic stability and future growth potential. The funding will be allocated over several years, with an annual budget of around $5.6 billion until 2035.

The high-speed railway construction will begin in 2028 and is expected to be completed by 2035. To support efficient railway operations, nine depots will be built along the railway line—five for passenger trains and four for freight trains.

Viet Nam also plans to connect its high-speed railway network with China by constructing two branches in northern Viet Nam, linking Hanoi to China’s railwayway system. If successful, this will allow Chinese high-speed trains to operate in Viet Nam, boosting cross-border trade and tourism, while also strengthening Viet Nam’s economic ties with China.

Foreign Loans Terms and Conditions

The Viet Namese government is focusing on mobilizing domestic capital to fund the high-speed railway infrastructure project, with the potential issuance of bonds as one of its strategic measures. If foreign loans are required, the government emphasizes that the terms must be favorable, with minimal restrictions and a clear transfer of technology to Viet Nam.

When involving foreign contractors, the use of locally produced products and services will be a key requirement. This is crucial given that the project’s construction costs are estimated to reach $34 billion.

Viet Nam also has local contractors capable of handling large-scale projects, such as tunnel and bridge construction. Additionally, the country boasts companies that are skilled in executing infrastructure projects and manufacturing train carriages.

Moreover, the selection of core railwayway technology will heavily depend on the agreed-upon technology transfer conditions, ensuring that Viet Nam can sustainably develop its technological capacity.