Central Vietnam hub Danang seeks private investment for urban railways

With plans for 16 urban railway lines spanning over 200 kilometers, Danang is prioritizing private investment to develop a modern public transport-oriented urban model.

Prioritizing private investment

According to the municipal Department of Construction, the city’s urban railway planning is based on the latest master plans and the new spatial structure of Danang after its merger with neighboring Quang Nam province.

The city envisions developing 16 urban rail routes with a total length of more than 204 kilometers, to be implemented from now until 2045.

Among these, the first priority line will connect Danang International Airport with the ancient town of Hoi An, Tam Ky - capital of the former Quang Nam province, and Chu Lai Open Economic Zone.

This route will be developed in two phases. In the first phase, it will connect Danang International Airport with Hoi An, including the seven-kilometer LRT2 line (from Danang airport to My Khe beach) and MRT2 (from the Vietnam-Korea University to the existing Danang Station, about 17 km). The investment is planned for 2025-2030.

In the second phase post-2030, the route will extend from Hoi An to Tam Ky and Chu Lai.

The second priority route will connect the high-speed railway station with the city’s central urban rail station, ensuring smooth linkage between the national high-speed railway and Danang’s downtown area. The implementation timeline will align with the progress of the national high-speed railway project through Danang.

Deputy director of the construction department Luong Thach Vy said the urban railway system will be funded through three main sources: public investment from the state budget, ODA and concessional loans from foreign donors, and private investment and public-private partnership (PPP) models.

“Based on the investment scale and the analysis of advantages and disadvantages of different funding sources, the city proposes prioritizing attracting private capital. Investors will finance the entire infrastructure and equipment, operate the system, and be allowed to develop urban projects under the transit-oriented development (TOD) model near the stations,” said Vy.

Vice Chairman of the Danang People’s Committee Le Quang Nam emphasized that to maintain growth and ensure quality of life, the city needs a strategic breakthrough in infrastructure.

Urban rail development, he said, offers an optimal and sustainable solution, solving traffic congestion while driving socio-economic, commercial, tourism, and logistics growth.

“The urban railway system is not just a mode of transport - it’s a vision project, embodying Danang’s aspiration to reach regional stature. It will connect functional areas, stimulate economic growth, and create a greener, cleaner, and more livable environment for future generations,” he stated.

Experts offer advice on rail-based urban development

A representative from Shenzhen Metro Group (China) noted that after its administrative merger, Danang has become Vietnam’s largest city by area, with over 3.1 million residents and a polycentric development structure.

This new scale requires a modern public transport network, with urban rail as the backbone guiding population distribution, spatial development, and labor mobility, he said.

According to the expert, Danang’s urban rail plan generally aligns with the future development direction of the city’s old downtown area. However, the city should optimize certain local sections and consider possible southern extensions.

Priority should be given to constructing two main high-capacity lines, MRT1 and MRT2, connecting major urban centers and key transport hubs to anchor the city’s urban spatial structure, he added.

The expert also suggested enhancing connectivity and convenience around the future high-speed rail station, applying the TOD model to create a new “high-speed rail city.”

Additionally, Danang should study the relationship between GDP scale and urban rail investment, finding balanced construction and financing models. Development and operation should go “hand in hand,” with early planning for financial structures, integrating international experience, and exploring a localized TOD model such as preemptive land control and urban infrastructure coordination to generate land value gains that help finance construction and operation.

Similarly, Mario Valerio Dattola, an international rail expert, noted that metro, tramway, monorail, and suburban rail systems worldwide have proven essential for reducing congestion, cutting emissions, and improving quality of life.

According to him, metros excel in speed and capacity for high-density corridors; tramways are flexible and lower-cost, suited for urban cores; monorails are modern but limited in capacity and flexibility.

For Danang, the positioning of new transport systems should consider the airport’s central location and the physical boundary created by the Han River, he said, adding by leveraging existing bridges to minimize infrastructure impact and recognizing the distinct transport needs of coastal tourism zones versus western residential areas, a hybrid but integrated transport solution could optimize both functionality and urban harmony.

Dattola also stressed that when studying suburban-downtown connections via commuter rail or metro, Danang’s transport planning must take a comprehensive approach, considering infrastructure, demand forecasting, financial feasibility, environmental impact, and socio-economic benefits.

Many enterprises interested in Danang-Hoi An urban rail project

Vice Chairman Le Quang Nam recently held a working session with the China Railway Fourth Survey and Design Institute Group Co., Ltd., which expressed interest in partnering with Danang to research and develop the Danang-Hoi An urban rail project and other related initiatives in Vietnam.

Previously, municipal leaders had met with "tunnel king" Deo Ca Group, which proposed investing in the same project.

The city has also invited Vietnam's multi-sector conglomerate Thaco to participate in an urban rail project connecting Danang International Airport to Chu Lai Airport, with phase 1 focusing on the Danang-Hoi An section.