Prime Minister Pham Minh Chinh asked the Japanese Bank for International Cooperation to help Vietnam research and develop its North-South high-speed railway during a meeting Friday.
The PM told Maeda Tadashi, chairman of the policy-based financial institution, that the development of the behemoth project could be "phased out, section by section, with easier parts to commence first, followed by the more difficult."
The proposed multi-billion-dolla railway project, shelved a few years ago due to hefty cost estimates, may be implemented over the next 10 years to bolster the country's ailing rail network.
The government had tasked the Ministry of Planning and Investment to re-evaluate the proposal and report to the Politburo for instruction, Minister of Transport Nguyen Van The said on June 10 at a National Assembly session.
The project may likely cost $58.71 billion in planned investment, with commercial operations expected to commence after 2030. The figure is equivalent to about 16% of Vietnam's GDP in 2021, the minister told the legislature body.
“When investment policies are made available, we will determine an appropriate schedule, with work to start three to four years later," he said.
At the meeting with JBIC, PM Chinh also proposed Japan and JBIC to facilitate the new generation ODA program that both prime ministers discussed, assist Vietnam in executing strategic infrastructure projects, especially transport infrastructure including expressways quickly deployed across the country, infrastructure for climate change resilience, digital transformation, health care services, promotion of innovations, and human resource quality.
He asked Japan and JBIC to help Vietnam access the $10 billion aid the Japanese Prime Minister had committed to at COP26 to achieve the country's net-zero emission goal by 2050.
The prime minister suggested JBIC's assistance focus on policy advisory, capital, technology, human resources, governance to develop an economy in transition to green energy and renewable energy, manufacturing of equipment in the areas of solar and wind power, with specific plans and projects.
He proposed JBIC encourage Japanese companies to shift their production to Vietnam or diversify their supply chains by making investments in the country, bringing Japan to the first investor position.