Industrial park developer Becamex proposes 2 backbone rail lines to boost southern Vietnam’s logistics

Vietnamese industrial real estate major Becamex IDC on Wednesday proposed two railway projects seen as future “backbones” of southern Vietnam's transport network, including a high-speed line between Ho Chi Minh City and Can Tho city, and another linking Bau Bang to the Cai Mep deep-sea port.

At a working session with Ho Chi Minh City leaders, Becamex presented its plan for the two railway lines, aiming to form a modern, green logistics network anchored in the country’s southern economic region.

The Bau Bang-An Binh-Cai Mep line has a length of 127 km, with a designed speed of 160 km/h for passenger trains and 120 km/h for freight.

Its investment is estimated at VND153 trillion ($5.11 billion). It will connect key industrial hubs in Binh Duong and Dong Nai directly to the Cai Mep-Thi Vai port cluster, enhancing maritime trade competitiveness.

Bau Bang is a former district in the north of the former Binh Duong province, now part of HCMC after their merger. Cai Mep is home to the Cai Mep deep seaport in the former Ba Ria-Vung Tau province, now also part of HCMC.

Meanwhile, the HCMC-Can Tho line will span 174 km, with a designed speed of 200 km/h for passenger trains and 160 km/h for freight. Its phase 1 investment is over VND173.6 trillion ($6.58 billion).

Once operational, it will facilitate rapid movement of agricultural goods from the Mekong Delta to industrial zones and international ports.

Becamex chairman and CEO Nguyen Van Hung emphasized that the two lines will be designed to interconnect, forming an integrated, modern rail network linking major ports, industrial zones, and urban centers.

Once operational, the railways are expected to save the region an estimated $2.2 billion annually in logistics costs and position Ho Chi Minh City and the southern region as a green, smart, and sustainable transport hub.

Chairman of the HCMC People’s Committee Nguyen Van Duoc voiced strong support for the initiative, particularly the Bau Bang-Cai Mep container rail line. He highlighted the strategic value of the Cai Mep-Thi Vai port, which boasts a 22 km-long wharf, one of the longest in the world, capable of receiving the world’s largest shipping vessels.

Despite this port capacity, rail infrastructure connecting to it remains lacking. Duoc urged Becamex to accelerate planning and clarify investment models, station locations, goods consolidation hubs, transit-oriented development (TOD) areas, and potential public-private funding mechanisms.

The city also nodded Becamex’s continued research and will coordinate with Dong Nai province, through which the rail line passes, before submitting proposals to the central government.

According to Hung, the new HCMC, formed by the merger of HCMC, Binh Duong and Ba Ria-Vung Tau, offers new opportunities for multimodal transport development, including rail and waterway networks.

Becamex, still with over 90% state ownership, expressed its commitment to partnering with the government on major infrastructure projects. The company is calling for clear regulatory frameworks delineating state responsibilities, particularly in land clearance, and businesses’ roles in construction and operations.

“We’ve engaged with several domestic and international investors who are eager to participate, provided there is a transparent and stable policy framework,” he said.

In addition to the railway proposals, Becamex also called on the city to help address delays in other key infrastructure projects, including the expansion of National Highway 13, My Phuoc-Tan Van Road, the expanded Bau Bang Industrial Park (380 ha), the Cay Truong Industrial Park (700 ha), and the Bau Bang Solar Power Projects 1 and 2.

Becamex is listed on the Ho Chi Minh Stock Exchange (HoSE) as BCM, which closed Wednesday at VND66,900 ($2.53) per share.