Vietnam government seeks parliament okay for private investors to develop North-South high-speed railway

The Vietnamese government on Wednesday proposed the National Assembly, the country's legislature, allow additional investment modes for the gigantic North-South high-speed railway project, apart from public investment.

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

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

In its proposal, the government argues that there are currently no forms of public-private partnership (PPP), direct private investment, or others applicable to the project, while the practical, legal and political bases have allowed for private enterprise participation in national key projects.

The National Assembly's Resolution No. 198/2025 also specifies that the state will expand the participation of the private sector in key projects, through direct investment or PPP.

International practice shows that railway infrastructure is mostly invested with public capital due to large investment capital, low financial efficiency, and long capital recovery periods. Some countries have implemented PPP for such projects with state support.

Thaco, Vingroup proposals

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

In a proposal submitted to Prime Minister Pham Minh Chinh, Thaco said that of the $61.35 billion in investment capital, 20% will come from its equity and the remaining from foreign and domestic loans. The cost does not include compensation and resettlement expenditures, which belong to a seperate project handled by the State.

Thaco proposed that the Government guarantee and pay all loan interest for 30 years. The loans are secured by project assets.

Previously, on May 15, VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of private conglomerate Vingroup, had announced its registration to invest in the project.

The giant project will have an estimated investment of VND1,562 trillion ($60.24 billion), excluding costs related to compensation, relocation support, and resettlement for land clearance. It is scheduled for completion by 2030.

VinSpeed commits to mobilizing 20% of the total investment capital, equivalent to $12.27 billion. For the remaining 80%, excluding costs related to compensation, relocation support, and resettlement for land clearance, the company proposed borrowing from the state budget, through zero-interest loans, repayable over a 35-year period from the disbursement date.

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.

The alliance said it will arrange and demonstrate sufficient cash resources to ensure the smooth implementation of the project with $100 billion from investment funds under the Great Core Fund and Mekolor Capital - part of the Mekolor-Great USA ecosystem.