Vietnam's industrial conglomerate Thaco proposes building urban railway projects in HCMC

Truong Hai Group (Thaco) has proposed studying investments in the Ben Thanh-Thu Thiem-Long Thanh railway line and Metro Line 2 (Ben Thanh-Tham Luong), both in Ho Chi Minh City.

The proposals were mentioned in a released conclusion by HCMC's deputy Party chief and Chairman Nguyen Van Duoc, following a meeting to remove difficulties for projects implemented and proposed by Thaco.

"The proposals are in line with the Politburo's Resolution 68 on private economic development and the city's railway system investment plan," reads the recent document.

Regarding Thaco's proposal to invest in Metro Line 2 (Ben Thanh-Tham Luong), the city Chairman has assigned the Department of Construction and other relevant agencies to work with Thaco.

The investment must meet "modern technology, reasonable cost" criteria. The city's aim is to have construction started in 2025 as planned, according to the announcement.

Metro Line 2 is part of HCMC's urban railway system. This route will pass through Districts 1, 3, 10 and 12, Tan Binh District and Tan Phu District, with the end point being Tham Luong station.

Ben Thanh is a ward in District 1, while Tham Luong is located in Tan Thoi Nhat ward, District 12.

Regarding the investment proposal for the Ben Thanh-Thu Thiem-Long Thanh railway line, the municipal People's Committee stated that it highly appreciates the proposal to synchronously connect urban railway lines from the city center (Ben Thanh) to the Thu Thiem Urban Area, and extend to Long Thanh International Airport, which is under construction.

It will be unified route suitable in terms of technology and urban space development orientation for the socio-economic development of the eastern area of the city, the committee noted.

Regarding Thaco's proposal to study investments in all remaining technical infrastructure, transport infrastructure, and landscape items in the Thu Thiem New Urban Area, such as the central square, riverside park, and ecological forest area, the committee requests the company to clearly identify these as new investment projects, instead of continuing to follow previous legal procedures.

The committee asks Thaco to focus on researching and clarifying an appropriate form of investment like BT (build-transfer), BOT (build-operate-transfer), and BTL (build-transfer-lease), and commit to ensuring capital sources in line with legal regulations.

Thaco recently proposed to invest in the trans-Vietnam high-speed railway project, following a similar proposal from heavyweight Vingroup.

In a proposal submitted to Prime Minister Pham Minh Chinh on May 26, 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.

Founded in 1997 with a focus on automobile manufacturing and assembly, Thaco has grown into a diversified industrial conglomerate.

It is one of the largest private multi-sector conglomerates in Vietnam. The group's business involves automobiles, agriculture, investment-construction, commerce-service, logistics, and supporting-mechanics.

HCMC, Ba Ria-Vung Tau province, and Binh Duong province have merged to become new Ho Chi Minh City, starting from Tuesday.

On June 12, the National Assembly, Vietnam's legislature, passed a resolution that reduces the country's number of provinces and cities from 63 to 34.

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 June 27, 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.

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 trans-Vietnam railway project.