Advisory council proposed to select investors for Vietnam's $67 bln North-South high-speed railway project

The Ministry of Finance has proposed the Government establish an advisory council to select investors for the VND1,710 trillion ($64.9 billion) North-South high-speed rail project, according to the Government Office.

In its recent dispatch to the Ministers of Finance, Construction, and Science and Technology, the Government Office said the Prime Minister has tasked the Ministry of Construction, in coordination with the Ministry of Science and Technology and other relevant bodies, with finalizing national standards, regulations, and implementation procedures for the high-speed rail project.

This framework is expected to be completed by October 2025, in line with the Government’s directions in Notice No. 483/TB-VPCP dated September 15, 2025. These efforts aim to foster a fair, open, and competitive investment environment.

Approved by the National Assembly on November 30, 2024, the high-speed rail project will stretch 1,541 kilometers from Ngoc Hoi Station (Hanoi) to Thu Thiem Station (Ho Chi Minh City), passing through 15 provinces and cities after recent administrative reorganizations.

Designed for speeds of up to 350 km/h, the dual-track railway will use standard gauge (1,435 mm) and accommodate 23 passenger stations and five freight stations. While primarily focused on passenger transport, the line will also be equipped for dual-use purposes, including national defense and emergency freight capacity.

The project will use public investment capital and be implemented in phases, with feasibility studies beginning in 2025 and targeted completion by 2035.

So far, at least two major domestic conglomerates, Vingroup and Thaco, have formally expressed interest in investing in this mega project.

In a proposal submitted to Prime Minister Pham Minh Chinh, Thaco said that of the $61.35 billion in investment capital, 20% will come from its equity and the remaining from foreign and domestic loans. The cost does not include compensation and resettlement expenditures, which belong to a seperate project handled by the State.

Thaco proposed that the Government guarantee and pay all loan interest for 30 years. The loans are secured by project assets.

Meanwhile, VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of Vingroup, commits to mobilizing 20% of the total investment capital, equivalent to $12.27 billion.

For the remaining 80%, excluding costs related to compensation, relocation support, and resettlement for land clearance, the company proposed borrowing from the state budget, through zero-interest loans, repayable over a 35-year period from the disbursement date.