Vietnam's public investment to focus on expressways, high-speed railways, urban railways

Vietnam is prioritizing public investment for expressway and high-speed/urban railway projects over the next five years to enhance inter-regional connectivity and stimulate socio-economic growth.

This was outlined in a resolution on the principles, criteria, and quotas for public investment allocation from 2026-2030, approved by the National Assembly's (NA) Standing Committee at a sitting on Friday.

Speaking at the event, Minister of Planning and Investment Nguyen Chi Dung said that compared to the 2020-2025 period, the upcoming phase will focus resources on national priority projects, including expressways, high-speed railways, and urban rail systems.

“The goal is to expedite the completion of critical infrastructure projects that connect regions and promote socio-economic development,” he stressed.

State resources will also be allocated to projects in defense and security, science and technology, innovation, nuclear energy, digital infrastructure, semiconductor technology, and green transformation, he added.

Le Quang Manh, Chairman of the NA’s Finance and Budget Committee, said he supported the proposed allocation principles and criteria up to 2030. However, he recommended that the government thoroughly review the criteria for projects utilizing official development assistance (ODA) and concessional foreign loans to ensure consistency with the new Law on Public Investment.

Manh also suggested prioritizing ODA for projects involving technology transfer in critical areas where Vietnam lacks expertise.

Vietnam is accelerating several key projects, such as components of the eastern wing of the North-South Expressway in the 2021-2025 period, metro lines in Hanoi and Ho Chi Minh City, and Long Thanh International Airport in the southern province of Dong Nai. This year, authorities aim to complete procedures and commence construction on the Lao Cai-Hanoi-Hai Phong railway.

Regarding the North-South high-speed railway project, the legislature approved it in late November 2024. The 1,541-kilometer line, starting at Ngoc Hoi Station in Hanoi and ending at Thu Thiem Station in HCMC, will pass through 20 provinces and cities.

The project is designed with a dual-track gauge of 1,435 mm, a maximum speed of 350 km/h, and a load capacity of 22.5 tons per axle. It includes 23 passenger stations and five freight stations. With an estimated cost VND1.713 trillion (approximately $67 billion) using public investment, the project is scheduled for completion by 2035.

The government aims for an economic growth rate exceeding 8% this year and double-digit rates in the period leading up to 2030. Vu Hong Thanh, Chairman of the NA’s Economic Committee, emphasized substantial resources required to achieve these growth targets, highlighting the need for criteria that position public investment as seed capital to attract additional resources.

NA Chairman Tran Thanh Man stressed that public investment allocations should be based on urgency, effectiveness, transparency, and fairness, ensuring that critical projects receive funding while less urgent ones are deferred. He also noted the importance of allocating funds to science-technology, innovation, and digital transformation.

According to Minister Dung, the number of public investment projects was cut from 20,000 in 2010-2015 to 10,000 in 2016-2020 and less than 5,000 in 2021-2025. Prime Minister Pham Minh Chinh has directed bringing the figure to approximately 3,000, focusing resources on large-scale projects, especially those in infrastructure projects, science-technology, innovation, and digital transformation.