Vingroup withdraws from Vietnam North-South high-speed rail bid

Vingroup has withdrawn its registration to invest in Vietnam's North-South high-speed railway project, saying it wants to concentrate resources on other strategic infrastructure and energy projects.

In a document submitted to the government on Thursday, the conglomerate said the decision was made to ensure maximum focus on major national projects, including the Olympic Sports Urban Area project in Hanoi, with Dong Son Bronze Drum Stadium as the centerpiece, as well as high-speed rail links such as Ben Thanh-Can Gio in the south and Hanoi-Quang Ninh in the north.

Vingroup said it wants to withdraw from the behemonth rail project it had proposed to the government in May 2025, following what it described as a careful assessment of its capital allocation priorities.

The company noted that the North-South high-speed railway project has attracted interest and investment proposals from several other well-capitalized and experienced firms, including Thaco Truong Hai, Vietnam Railways Corporation, and Vietnam Investment and Development Group (Vietnam 3000). As a result, its withdrawal would not affect the project’s implementation.

“This is a proactive and responsible step taken by Vingroup before the Government to ensure the effective delivery of projects already assigned, contributing to the development of transport infrastructure, renewable energy, and modern, sustainable urban areas, while enhancing national competitiveness and quality of life,” it added.

The conglomerate (HoSE: VIC), Vietnam's biggest listed company by market cap, last Friday broke ground on its 9,171-hectare Olympic Sports Urban Area project in Hanoi, which is expected to become a new growth engine for the southern part of the capital in the next decade.

The groundbreaking marks a significant turning point in the planning of the capital city, creating one of the largest megacities in Vietnam which will span 11 communes (Dai Thanh, Ngoc Hoi, Nam Phu, Thuong Tin, Hong Van, Chuong Duong, Thuong Phuc, Binh Minh, Tam Hung, Thanh Oai, Dan Hoa), all on the outskirts of Hanoi. The total investment is VND925.65 trillion ($35.18 billion).

The centerpiece of the project is the Dong Son Bronze Drum Stadium, built on a 73.3-hectare plot of land with a designed capacity of 135,000 seats. According to a company release, this will be a FIFA-standard stadium with the world's largest capacity and the world's largest automatic retractable roof system.

In addition, Vingroup has been appointed as investor in several major transport infrastructure projects, including the Ben Thanh-Can Gio and Hanoi-Quang Ninh high-speed rail lines.

The group is also pressing ahead with a range of industrial, energy and infrastructure investments, including the VinMetal steel plant; two wind power projects in Ky Anh, Ha Tinh province; the Hai Phong LNG-to-power plant, and the sea encroachment tourism-urban area project named Vinhomes Green Paradise.

“These projects all contribute to upgrading the country’s infrastructure and production capacity and require substantial investment in capital, time and execution capability,” Vingroup wrote.

Earlier, on December 17, Siemens Mobility signed a comprehensive strategic cooperation and high-speed railway technology transfer agreement with VinSpeed, a unit of Vietnam’s Vingroup, to supply high-speed trains and key railway systems for planned rail projects in Vietnam.

Under the deal inked in Hanoi, Siemens Mobility will design, supply and integrate rolling stock as well as core railway systems, including signalling, communications and power supply, according to a Vingroup press release. The German group will also provide maintenance support and transfer technology for VinSpeed’s high-speed rail projects.

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 Vietnam’s North-South high-speed railway project.

The gigantic project would 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 committed 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.

Compared to the investment plan approved under Resolution No. 172/2024/QH15, VinSpeed’s proposal would substantially reduce fiscal pressure on the national budget. This model gains further relevance considering the global trend of high-speed rail projects struggling with cost recovery and sustained profitability.

VinSpeed had pledged to begin construction before December 2025, accelerating the project timeline to bring the entire railway into operation by December 2030.

Vingroup-related stocks fell sharply following news that the group had withdrawn its investment registration for the North-South high-speed railway, causing the VN-Index to decline at the end of the trading session on Thursday.

VIC of Vingroup closed the session down 11.8 points, equivalent to 6.95%, at VND158,000 ($6) apiece. VHM of Vinhomes lost 8.5 points, or 6.92%, closing at VND114,300. VRE of Vincom Retail hit the floor price at VND32,250. VPL of Vinpearl, although not hitting the floor price, decreased by 2.94% to VND99,000 a unit.

The Ho Chi Minh Stock Exchange witnessed both strong gains and sharp declines. VN-Index rose and maintained a high level for most of the trading time, at one point reaching 1,800 points.

However, after the initial surge, it reversed sharply towards the end of the session, falling nearly 40 points to 1,742. Liquidity remained high with trading value exceeding VND25 trillion ($949.9 million).