Vietnam gov’t requests thorough cost calculations for first high-speed railway

By Quang Minh
Mon, October 7, 2024 | 8:08 pm GMT+7

The Vietnamese government has asked subordinated agencies to meticulously calculate the estimated cost of the colossal transnational high-speed railway project to prevent financial risks.

Calculations should take into account all natural and socio-economic conditions and characteristics of the project to identify a preliminary cost that is the most accurate as possible, avoiding cost overruns during implementation, the government said in conclusions after a meeting last Saturday.

The request was made as cost overruns have been common for Vietnam’s first three metro lines in Hanoi and Ho Chi Minh City.

Japan's Shinkansen railway. Photo courtesy of www.japanesetrain.com.

Japan's Shinkansen railway. Photo courtesy of www.japanesetrain.com.

The government also proposed special policies and mechanisms be issued to mobilize maximum resources, fast-track procedures, and give the National Assembly and government more freedom to implement the project.

Public investment will take the lead in financing the project, including the central and local budgets, borrowings, and bond issuances. Other forms, such as build-operate-transfer (BOT) and build-transfer (BT) formats and other non-state sources, should also be considered, the government concluded.

The Ministry of Transport was asked to coordinate with the Ministry of Finance to assess the impact of the project on the nation’s public debt and foreign debt and its economic effectiveness, considering potential reductions of travel cost and logistics cost, land rent increases, and the country’s competitiveness.

The government requested that all project dossiers be submitted to the National Assembly, the country’s parliament, before its regular eighth plenum starts on October 21.

The government asked the transport ministry to lead efforts to study projects to build three railway routes linking with Chinese ones: Lao Cai-Hanoi-Hai Phong, Hanoi-Dong Dang (Lang Son province), and Mong Cai (Quang Ninh province)-Ha Long (Quang Ninh province)-Hai Phong.

The priority should be given to the Lao Cai-Hanoi-Hai Phong, with a view to starting construction next year.

The North-South high-speed railway is slated to have a length of 1,541 kilometers and a maximum speed of 350 kilometers per hour. It will run through 20 provinces and cities, with the two ends being Hanoi and Ho Chi Minh City, the country’s two largest cities.

The initial cost is $67.34 billion, higher than $58.7 billion of a similar project proposed in 2019.

Deputy Minister of Transport Nguyen Danh Huy said last week that the country will mainly rely on itself in building the high-speed railway, minimizing foreign strings attached.

Comments (0)
  • Read More
Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.

Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.

Energy - Thu, October 16, 2025 | 9:04 pm GMT+7

Vietnam to soon raise taxpayers' personal deduction: official

Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Finance - Thu, October 16, 2025 | 6:25 pm GMT+7

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.

Economy - Thu, October 16, 2025 | 4:36 pm GMT+7

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.

Finance - Thu, October 16, 2025 | 3:35 pm GMT+7

Law No. 56 a major policy breakthrough for Vietnam's stock market development

Law No. 56 a major policy breakthrough for Vietnam's stock market development

The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.

Finance - Thu, October 16, 2025 | 2:30 pm GMT+7

WHA Group breaks ground on smart technology industrial zone in central Vietnam

WHA Group breaks ground on smart technology industrial zone in central Vietnam

Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.

Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.

Companies - Thu, October 16, 2025 | 12:06 pm GMT+7

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.

Companies - Thu, October 16, 2025 | 8:41 am GMT+7

Indonesia enjoys steady growth in nine months

Indonesia enjoys steady growth in nine months

Indonesia's Ministry of Finance on Tuesday announced the country’s 2025 budget performance as of September, reporting that Southeast Asia’s largest economy continued to post steady growth despite global economic uncertainties.

Southeast Asia - Wed, October 15, 2025 | 9:53 pm GMT+7

Malaysia on progressive path towards AI nation status: experts

Malaysia on progressive path towards AI nation status: experts

Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) nation by 2030, a goal seen as achievable under Budget 2026 - the Malaysian Government’s fiscal and policy framework for 2026.

Southeast Asia - Wed, October 15, 2025 | 9:44 pm GMT+7

Thailand steps up development of semiconductor industry

Thailand steps up development of semiconductor industry

Thailand’s Board of Investment (BOI) plans to propose a new national semiconductor and advanced electronics policy board to the government, which will spearhead Thailand’s semiconductor development strategy.

Southeast Asia - Wed, October 15, 2025 | 9:40 pm GMT+7

ASEAN sets ambitious energy targets

ASEAN sets ambitious energy targets

Senior energy officials from ASEAN member nations and Timor-Leste on Tuesday convened in Kuala Lumpur, Malaysia, to finalize key outcomes and policy recommendations to be submitted to the 43rd ASEAN Ministers on Energy Meeting (AMEM).

Southeast Asia - Wed, October 15, 2025 | 9:33 pm GMT+7

Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam

Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam

A subsidiary of Sun Group, one of Vietnam’s leading real estate developers, has received approval to invest VND9.88 trillion ($375 million) in an inland waterway tourism project in the central coastal city of Danang.

Industries - Wed, October 15, 2025 | 5:21 pm GMT+7

Vietnamese luxury car dealer Haxaco’s business slumps, stock nears two-year low

Vietnamese luxury car dealer Haxaco’s business slumps, stock nears two-year low

The operations of Hang Xanh Automobile Service JSC or Haxaco (HoSE: HAX), known as the largest distributor of Mercedes-Benz vehicles in Vietnam, are under pressure as consumers tighten spending and competition among car brands intensifies.

Companies - Wed, October 15, 2025 | 5:13 pm GMT+7

Vietnam sets 2026 GDP growth target at 10%

Vietnam sets 2026 GDP growth target at 10%

The Vietnamese Government has set the targets for economic expansion in 2026 at about 10% and inflation at 4.5%.

Economy - Wed, October 15, 2025 | 4:28 pm GMT+7