Tremendous opportunity from North-South high-speed rail system: RMIT expert

Vietnam stands at the cusp of a significant transformation with the development of its North-South high-speed railway, which can potentially elevate the country's economic and logistical capabilities, positioning Vietnam as a key player in global logistics, writes Dr Majo George, a senior lecturer of logistics and supply chain management at RMIT University.

While some critics suggest that Vietnam has lagged behind neighbouring countries such as Cambodia and Laos, which have already developed high-speed rail connections, this perspective overlooks Vietnam's current strategic advantage.

Vietnam’s timing could not be better. The rapid pace of technological advancements in high-speed rail systems means that the country can leverage the latest innovations to implement a state-of-the-art logistics network from the outset.

Countries like Japan and France, pioneers in high-speed rail, have had to invest heavily in modernizing their early infrastructure to meet current demands. Conversely, Vietnam can bypass the limitations of older technology and adopt the most advanced, reliable, and cost-effective solutions available today. This includes improvements in energy efficiency, intelligent rail management systems, and more sustainable construction methods.

Moreover, integrating high-speed rail for both cargo and passengers would open up new economic opportunities, facilitate faster trade, and strengthen Vietnam’s position in the regional and global logistics landscape.

Implementing such a system would allow businesses to transport products across the country within the same day, dramatically reducing dependence on slower road transport and optimizing supply chains.

350kph speed is strategically necessary

While ambitious, the proposed 350 kilometres per hour (kph) speed for Vietnam’s North-South high-speed railway is feasible and strategically necessary. This speed aligns with global standards set by leading high-speed rail networks in countries such as Japan, China, and France.

For Vietnam, achieving this speed is not just a technical possibility but a crucial step in enhancing connectivity between key economic hubs like Hanoi, Ho Chi Minh City, and Danang and fostering international links through border cities.

Critics may view 350kph as excessive, particularly for freight transportation, but the evolving demands of modern logistics tell a different story. The global marketplace is increasingly driven by speed and efficiency, particularly for high-value, time-sensitive goods.

Vietnam can harness this momentum by integrating high-speed light cargo services into its railway system, drawing on the example of Japan’s Shinkansen network. This approach would meet the growing need for rapid deliveries and position Vietnam as a competitive player in the global logistics landscape.

By optimizing passenger and freight routes at 350kph, Vietnam can attract significant foreign investment, enhance trade efficiency, and further solidify its role as a logistics hub in Southeast Asia. The ability to offer fast, reliable transport solutions nationwide will stimulate economic growth and elevate Vietnam’s standing in global supply chains.

Key considerations in implementation

The North-South high-speed railway is an ambitious infrastructure project of significant scale, necessitating careful planning and rigorous execution. To ensure its successful development, Vietnam can draw upon global best practices observed in countries like Japan, China, and India, demonstrating the importance of effective project management, transparency, and phased implementation.

One strategic approach for Vietnam would be to segment the project into different phases or regions, allowing specialized international expertise to be applied to each section. This method of decentralizing responsibility ensures high-quality outputs and accelerates the timeline.

For instance, with its expertise in high-speed rail technology, Japan could oversee one segment. At the same time, countries like Germany, China, South Korea, Singapore, and India could manage others based on their strengths in engineering, logistics, and project execution. Such a diverse involvement would also facilitate financial and technical collaboration from multiple nations, enhancing the project's robustness.

Furthermore, Vietnam should explore public-private partnerships (PPP) to mitigate the financial burden of a project of this size. By allowing private enterprises and the public to invest in the railway, Vietnam could create a sense of national ownership while securing long-term financial stability.

Sustainability should be another core priority throughout the project's lifecycle. As global infrastructure increasingly shifts towards greener practices, Vietnam must adopt environmentally friendly technologies, such as energy-efficient trains and the integration of renewable energy sources.

Ensuring minimal environmental disruption during the construction phase will not only enhance the project's public perception but also align with global sustainability standards, securing its success in the long term.