Electrification to be sustainable approach to Vietnam's rail modernization

By Majo George
Tue, May 21, 2024 | 7:36 am GMT+7

Vietnam’s plans to introduce high-speed rail lines must be supported by electrification, said RMIT logistics and supply chain management senior lecturer Dr Majo George.

The Vietnamese government aims to kick off construction of a high-speed North-South express rail line by 2030, to be ready for operation by 2045.

A North-South express train in Vietnam. Photo courtesy of VietnamNet.

A North-South express train in Vietnam. Photo courtesy of VietnamNet.

As announced in April 2024, the priority will be on the Hanoi - Lang Son line, which will extend to the Chinese border, and a line connecting Hanoi with northern provinces, including Lao Cai, Hai Phong and Quang Ninh.

As Vietnam sets out on an ambitious journey to transform its railway system, one key aspect that cannot be overlooked is the electrification of the rail network.

Under Vietnam’s net-zero commitment, the country will shift to using locomotives and train cars running on clean energy by 2050. Railway electrification reflects a forward-thinking strategy that aligns with global sustainability goals and enables enduring development over the next century.

The rationale for electrification

Electrification can significantly reduce the carbon footprint of rail transport compared to the diesel-powered trains currently in use. As nations worldwide commit to reducing greenhouse gas emissions, electrified railways are becoming a hallmark of sustainable transportation.

These railways tend to be more efficient, with lower maintenance costs and reduced energy consumption in the long run. Such efficiency can improve service reliability and lower operational costs, benefitting both freight and passenger services.

Moreover, electric trains are quieter and offer a smoother ride, enhancing the overall travel experience and potentially boosting passenger demand.

Importantly, electrification sets the foundation for future expansion and innovation. As Vietnam's economy grows and trade volumes increase, an electrified rail network will be better equipped to handle higher capacities and faster trains.

It also opens the door to the use of advanced technologies such as automated train control systems, providing the flexibility needed for continued development over the next century.

Strategic considerations for electrification

Given the scale of Vietnam's railway system, electrification should be approached in phases, prioritizing key routes that significantly impact freight and passenger transport. This gradual implementation allows for efficient resource allocation and minimal disruptions to existing services.

To further enhance sustainability, the rail electrification strategy could include the use of electric power generated from renewable sources like solar and wind. This aligns with Vietnam's broader goals of transitioning to a greener energy mix.

Collaboration and knowledge exchange are also necessary. Countries that have successfully implemented rail electrification, such as Japan, Germany, and China, could offer valuable insights and technology transfer. Additionally, partnering with emerging markets like India, which is also pursuing extensive rail electrification, can lead to shared best practices and innovative solutions tailored to the unique challenges of developing nations.

Finally, electrification requires supportive regulatory and policy frameworks. This includes setting clear standards for rail infrastructure, ensuring safety, and encouraging investment in electric rail technologies. The government must play a proactive role, offering incentives and creating a conducive environment for public and private sector participation.

Electrification is a cornerstone of Vietnam's rail modernization. This bold transition, supported by a phased implementation plan, integration of renewable energy, and strategic collaborations, can help Vietnam meet the demands of international trade and manufacturing, while contributing to a more sustainable world.

Comments (0)
  • Read More
Vincom Retail reverses course, proposes cash dividend ahead of AGM

Vincom Retail reverses course, proposes cash dividend ahead of AGM

Vincom Retail, a subsidiary of Vingroup, has proposed a cash dividend for 2026, reversing an earlier plan to retain earnings, as the company prepares for its annual general meeting on Thursday.

Companies - Wed, April 22, 2026 | 8:17 am GMT+7

VinFast overtakes Tesla as Q1 best-selling battery electric vehicle brands in Philippines

VinFast overtakes Tesla as Q1 best-selling battery electric vehicle brands in Philippines

VinFast, the EV subsidiary of Vietnam’s conglomerate Vingroup, has surpassed Tesla to be the best-selling battery electric vehicle (BEV) brand in the Phillipines in the first quarter of 2026.

Companies - Tue, April 21, 2026 | 9:05 pm GMT+7

Usilk City urban area project case in Hanoi referred to police for investigation over alleged violations

Usilk City urban area project case in Hanoi referred to police for investigation over alleged violations

Vietnam's Government Inspectorate has decided to refer the case related to the expanded Van Khe urban area project (Usilk City) to the Ministry of Public Security for investigation and handling in accordance with the law, after identifying a number of wrongdoings.

Real Estate - Tue, April 21, 2026 | 5:12 pm GMT+7

ACV proposes shifting most international flights from Tan Son Nhat to Long Thanh by 2027

ACV proposes shifting most international flights from Tan Son Nhat to Long Thanh by 2027

Airports Corporation of Vietnam (ACV) has proposed shifting the bulk of international flights from Tan Son Nhat International Airport in Ho Chi Minh City to the Long Thanh International Airport in neighboring Dong Nai province under a phased plan that could see more than 90% of international passenger traffic handled by the new airport as early as 2027.

Economy - Tue, April 21, 2026 | 5:03 pm GMT+7

Tasco chairman outlines growth plan as shareholders lament losses

Tasco chairman outlines growth plan as shareholders lament losses

Shareholders of Tasco JSC voiced concerns at the firm’s annual general meeting on Monday after "holding HUT shares for three years without breaking even", prompting chairman Vu Dinh Do to outline key priorities for the company’s next phase of growth.

Companies - Tue, April 21, 2026 | 3:22 pm GMT+7

More than a marathon: How Carlsberg Vietnam runs together to build a stronger growth culture

More than a marathon: How Carlsberg Vietnam runs together to build a stronger growth culture

For the fifth consecutive year, Carlsberg Vietnam, together with its iconic Huda brand, returned as one of the main sponsors of VnExpress Marathon Hue 2026. But for the company, this was never simply about sponsoring a race. It was about something far bigger: how culture, leadership, and shared purpose create the foundation for sustainable growth.

Companies - Tue, April 21, 2026 | 12:17 pm GMT+7

AnPro drives An Phat Holdings’ expansion into interior materials

AnPro drives An Phat Holdings’ expansion into interior materials

An Phat Holdings is expanding beyond engineering plastics into high-tech interior materials through its AnPro brand, as part of a broader strategy to move up the value chain.

Companies - Tue, April 21, 2026 | 12:14 pm GMT+7

Vingroup, Vinhomes lift 2026 profit targets, sending shares higher

Vingroup, Vinhomes lift 2026 profit targets, sending shares higher

Vietnamese conglomerate Vingroup (HoSE: VIC) and its subsidiary Vinhomes (HoSE: VHM) said they will seek shareholder approval to raise their 2026 revenue and profit targets at the upcoming AGM.

Companies - Tue, April 21, 2026 | 11:18 am GMT+7

Foxconn pours additional $58.3 mln into northern Vietnam unit

Foxconn pours additional $58.3 mln into northern Vietnam unit

Taiwan’s Hon Hai Precision (Foxconn), a key electronics supplier to Apple, said it will invest an additional $58.32 million in its Vietnamese subsidiary, Fushan Technology (Vietnam), according to a filing to the Taiwan Stock Exchange.

Investing - Tue, April 21, 2026 | 11:03 am GMT+7

Consortium proposes three wastewater plant projects in HCMC

Consortium proposes three wastewater plant projects in HCMC

A consortium comprising three Vietnamese companies - Petrosetco, Gelex Infrastructure and Viconship - has proposed three major wastewater treatment projects in Ho Chi Minh City, highlighting growing private-sector interest in environmental infrastructure.

Industries - Tue, April 21, 2026 | 8:00 am GMT+7

Vietnam: Energy shock clouds the outlook for 2026

Vietnam: Energy shock clouds the outlook for 2026

The most difficult period will be in Q2 and Q3/2026 as high global energy prices (and limited supplies) hit their peaks before easing toward end-2026, write UOB analysts in their latest report on Vietnam economic forecasts released last Friday.

Economy - Mon, April 20, 2026 | 5:22 pm GMT+7

Vietnam's top retailer MWG targets 30% profit growth this year, $10 bln sales by 2030

Vietnam's top retailer MWG targets 30% profit growth this year, $10 bln sales by 2030

Mobile World Investment Corporation (HoSE: MWG) set net profit goal at VND9.2 trillion ($349.4 million) this year, up 30% year-on-year, as the leading Vietnamese retailer accelerates separate plans for its core subsidiaries.

Companies - Mon, April 20, 2026 | 4:52 pm GMT+7

Steel giant Hoa Phat inaugurates $76 mln steel pipe plant in southern Vietnam

Steel giant Hoa Phat inaugurates $76 mln steel pipe plant in southern Vietnam

Vietnam’s conglomerate Hoa Phat Group (HoSE: HPG) on Saturday inaugurated a new steel pipe plant in the southern province of Tay Ninh with an investment of VND2 trillion ($75.6 million), as the country’s top steelmaker expands capacity to capture recovering demand in construction and infrastructure.

Industries - Mon, April 20, 2026 | 3:01 pm GMT+7

DNSE margin lending and advance receivables up nearly 40% year-on-year

DNSE margin lending and advance receivables up nearly 40% year-on-year

Brokerage DNSE Securities JSC reported operating revenue of more than VND395 billion ($15 million) in the first quarter of 2026, up 62% from a year earlier, driven by strong growth in margin lending and advances on securities sales.

Companies - Mon, April 20, 2026 | 1:47 pm GMT+7

Major corporations back Ho Chi Minh City Venture Capital Fund

Major corporations back Ho Chi Minh City Venture Capital Fund

Several large regional and Vietnamese corporations have become founding shareholders of the Ho Chi Minh City Venture Capital Fund, launched last Friday as part of efforts to boost early-stage financing for startups.

Finance - Mon, April 20, 2026 | 1:40 pm GMT+7

Foreign investors hold over 10% stake in CAEX after capital hike

Foreign investors hold over 10% stake in CAEX after capital hike

Vietnam Prosperity Crypto Asset Exchange JSC (CAEX) has completed a capital increase from VND25 billion to VND10 trillion ($380 million), with foreign investors holding a 10.6% stake.

Finance - Mon, April 20, 2026 | 8:00 am GMT+7