Vietnam's leading conglomerate Vingroup proposes $5.3 bln high-speed rail linking Hanoi with Quang Ninh province

VinSpeed, a high-speed rail subsidiary of Vingroup (HoSE: VIC), has proposed building a VND138.9 trillion ($5.28 billion) railway connecting Hanoi with Quang Ninh - home to the the UNESCO world heritage site Ha Long Bay, with trains designed to run at speeds of up to 350 km per hour.

The company said the capital city of Hanoi and Quang Ninh are two major hubs of northern Vietnam’s Red River Delta and northeastern regions, but the two areas are currently connected mainly by road, which is becoming increasingly congested despite significant investment.

The existing rail line to Ha Long is outdated, primarily used for freight, and unsuitable for high-quality passenger services.

VinSpeed plans to deploy the gigantic project, about 120.4 km long, from the end of this year and put it into trial operation and commercial operation by the end of 2027 and in Q1/2028, respectively.

This information was dislosed by the company in its environmental impact assessment (EIA) report of the project, announced for consultation.

This project was recently been added by the Government to the Railway Network Planning for the period 2021-2030, with a vision to 2050.

The route will pass through 22 communes and wards of four provinces and cities, including Hanoi, Bac Ninh - home to the future Gia Binh International Airport, Hai Phong, and Quang Ninh. This high-speed railway has a gauge of 1,435 mm and is electrified.

The starting point of the route is the Vietnam Exposition Center (VEC) in Dong Anh commune, Hanoi. The train will then run through the Gia Binh station (Bac Ninh province), Yen Tu station (Quang Ninh province), and end at the Ha Long station located in the forest park area, Tuan Chau commune (Quang Ninh). The designed speed of the route is 350 km per hour, of which the section through Hanoi is 120 km per hour.

VEC is a massive development that completed construction after only 10 months. Vietnam Exhibition Fair Center JSC (VEFAC), with Vingroup holding over 85% of its charter capital, is the developer of this project. The complex spans over 900,000 square meters, with a total investment of VND7 trillion ($275 million).

Vingroup plans to operate four trains with 16 carriages in the 2028-2035 period and increase to eight trains (32 carriages) in the 2035-2050 period. These trains can operate 18 hours per day (5 a.m.-11 p.m.). In the first years of operation, VinSpeed expects the interval between trains to be 60 minutes and shortened to 30 minutes from 2030.

VinSpeed was established in May with billionaire Pham Nhat Vuong - chairman of Vietnam’s leading private conglomerate Vingroup (HoSE: VIC) - holding a 51% stake, and his two sons, Pham Nhat Minh Hoang and Pham Nhat Quan Anh, each owning 0.5%.

In May 2025, VinSpeed submitted a proposal to invest in Vietnam’s North-South high-speed railway project. The behemonth 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.

Ho Chi Minh City authorities recently approved a proposal by VinSpeed to extend its planned metro line to begin at Ben Thanh market in downtown city, aiming to strengthen connectivity with the broader urban rail network.

Under the revised plan, the metro will start at Ben Thanh instead of Nguyen Van Linh street in District 7 as initially proposed, while still ending at Can Gio’s coastal urban area. The 48.5-kilometer dual-track line will be capable of speeds of up to 350 km/h.

In August, Nguyen Anh Tuan, general director of VinSpeed, said that the metro line is set to start construction in November, with completion expected 30 months later. It would be Vietnam’s first privately funded high-speed rail line.

According to VinSpeed’s study, the 48.5-kilometer high-speed rail line will cut travel time to just 16 minutes. Between 2030 and 2050, trains are expected to run every 12 minutes.