HCMC fast-tracks rail projects proposed by private conglomerates

The Ho Chi Minh City People’s Committee has asked municipal agencies to work with major private conglomerates to finalize investment plans for the railway projects they proposed.

For the rail project linking downtown HCMC with the outlying former Can Gio district, proposed by VinSpeed, which is controlled by Vietnamese billionaire Pham Nhat Vuong, the committee directed relevant agencies to promptly provide feedback at the Department of Finance’s request.

The department will gather feedback, compile reports for submission, and advise on investment procedures, with September 15 as the deadline, according to a notice from the committee’s Office. The notice conveys HCMC Vice Chairman Bui Xuan Cuong’s conclusions at the August 27 meeting on project progress.

The project will be Vietnam’s first privately-funded, high-speed rail line, expected to become a new symbol of HCMC and offer residents and visitors a 350 km/h travel experience.

According to VinSpeed’s study, the 48.5-kilometer high-speed rail line will cut travel time to just 16 minutes. Between 2030 and 2050, trains are expected to run every 12 minutes.

For Metro Line 2 (Ben Thanh-Tham Luong) and the Thu Thiem-Long Thanh railway line proposed by industrial conglomerate Truong Hai Group (Thaco), Cuong asked the Department of Construction to reach agreement with the investor on implementation plans.

The work covers investment model, funding sources, technology, route planning, and timeline, with reports due by September 15.

Metro Line 2 is part of HCMC's urban railway system. This route will pass through the former Districts 1, 3, 10 and 12, Tan Binh district and Tan Phu district, with the end point being Tham Luong station.

Ben Thanh is a ward in District 1, while Tham Luong is located in Tan Thoi Nhat ward, District 12.

Meanwhile, the Thu Thiem-Long Thanh railway line is expected to address transportation needs between Tan Son Nhat International Airport in HCMC and Long Thanh International Airport in neighboring Dong Nai province.

For the fast rail project connecting central HCMC with Cai Mep, Bau Bang, and Can Tho city, proposed by Becamex IDC Corp - a leading urban and industrial park developer, the Department of Construction will join hands with the investor to finalize the implementation plan.

Cuong requested the Department of Construction, in coordination with the Management Authority for Urban Railways and other relevant agencies, to review the 2025 Railway Law in order to correctly designate the names of proposed projects - whether as national railways, local railways, or local railway projects under the transit-oriented development (TOD) model.

He emphasized the need to identify priority railway lines for the 2025-2035 period and propose special mechanisms and policies to facilitate their implementation.

The Department of Finance will coordinate with the HCMC Institute of Development Research, the Management Authority for Urban Railways, and others to urgently study and propose supplements to special mechanisms regarding funding, investment procedures, compensation costs for site clearance, and environmental procedures, for inclusion in the draft amendments to Resolution 98.

The document outlining special mechanisms for HCMC was adopted by the National Assembly – Vietnam’s legislature in 2023.

HCMC was merged with industrial centers Binh Duong and Ba Ria-Vung Tau provinces to form the new HCMC in July 1.