$67 bln trans-Vietnam high-speed railway likely to break ground in 2027

Vietnam hopes to break ground on the first two sections of a North-South high-speed railway route late 2027.

A pre-feasibility study report by the Ministry of Transport (MoT) mentions the two sections as: Hanoi to Vinh and Nha Trang to Ho Chi Minh City.

Vinh and Nha Trang are capital towns of the central provinces of Nghe An and Khanh Hoa, respectively.

Work on the third section, from Vinh to Nha Trang, is planned to begin in 2028-2029, with the goal of completing the whole project in 2035.

The 1,541 km high-speed railway project, estimated to cost $67.34 billion, will have a designed speed of 350 km/hour. It will primarily serve passenger transportation and carry light cargo when needed, the ministry said.

The electrified railway route will have 23 passenger and five cargo stations connected to key cargo hubs. It will begin at the Ngoc Hoi station in Hanoi and pass through 20 provinces and cities before ending at the Thu Thiem station in HCMC.

The MoT report proposes several funding sources for the project including the central budget (for the medium term), government bonds, and locality contributions.

The ministry plans to present the investment plan to the National Assembly, Vietnam’s parliament, next month.

It expects that a bidding process in 2025-2026 will select international consultants. This phase will also include conducting surveys and preparing a pre-feasibility study report.

The high-speed railway is expected to meet increasing transportation needs, optimize and restructure the transportation market share along the North-South corridor, create a foundation for socio-economic development, and enhance national defense and security, the report says.

At a meeting held Wednesday to discuss the mega project, Deputy Prime Minister Tran Hong Ha asked the transport ministry to suggest special mechanisms and policies for localities and businesses involved.

To date, at least three countries – Japan, China, and South Korea – have expressed interest in joining the mega project. The Vietnamese government has proposed borrowing from Japanese and South Korean counterparts to finance it.