Private firms eligible to invest in trans-Vietnam high-speed railway project

The National Assembly, Vietnam's legislature, has allowed private companies to invest in the North-South high-speed railway project.

Under a resolution passed on Friday, the parliament allows additional investment forms for the gigantic project, including public-private partnership (PPP) and investment under the Investment Law, apart from public investment.

It assigned the Government to select investment forms and investors according to regulations for the North-South high-speed railway project.

In case there are other mechanisms and policies beyond the Government's authority, they must be reported to the National Assembly for consideration and decision, the resolution added.

Previously, the Politburo, the country's supreme decision-making body, okayed public investment for this behemoth project.

However, after the Politburo issued Resolution No. 68 on private economy development, several private conglomerates have proposed to directly invest in this project.

Thaco Group last month proposed to invest in the North-South high-speed railway project, following a similar proposal from heavyweight Vingroup.

Most recently, an alliance between Mekolor, a relatively unknown Vietnamese company, and American entity Great USA showed an intention to participate in this national project.

At a meeting with Prime Minister Pham Minh Chinh on June 25, Peter Koerte, a managing board member of Siemens AG, said the German technology giant wants to participate in infrastructure development projects in Vietnam, especially high-speed railways.

Chinh was then attending the 16th Annual Pioneers Meeting of the World Economic Forum and working in Tianjin city, China.

Henri Poupart-Lafarge, CEO of Alstom Group, at a meeting with Chinh on June 11, also stated that Alstom desires to engage in high-speed rail projects in Vietnam and is willing to share its technology.

The Vietnamese Government on April 23 issued a resolution that details a roadmap for implementing the North-South high-speed railway project, requesting all necessary conditions be completed for construction commencement no later than December 31, 2026, one year earlier than initially planned.

The North-South high-speed railway project, estimated to cost $67.34 billion, will have a designed speed of 350 km/hour. The 1,541 km electrified railway route will have 23 passenger and five cargo stations connected to key cargo hubs.

It will begin at the Ngoc Hoi station in Hanoi and pass through 20 provinces and cities before ending at the Thu Thiem station in Ho Chi Minh City.