VinSpeed begins survey work for $5.3 bln high-speed railway in northern Vietnam

VinSpeed, a rail company founded by Vingroup chairman Pham Nhat Vuong, has begun survey work in Vietnam’s northern province of Bac Ninh for a proposed $5.3 billion high-speed railway linking Hanoi with the northern port province of Quang Ninh, local authorities said.

The provincial government has instructed its construction department and local administrations to facilitate VinSpeed’s survey and preliminary design work for the Hanoi-Quang Ninh line. The move follows a request from VinSpeed seeking support to conduct construction surveys for the project.

The proposed railway would span about 120 km, passing through 22 communes and wards across Hanoi, Bac Ninh province, Hai Phong city, and Quang Ninh province. The line would be built to standard-gauge specifications (1,435 mm) and fully electrified.

VinSpeed estimates total investment at around VND138.93 trillion ($5.3 billion). The route would start at the Vietnam Exposition Center (VEC) in Hanoi’s Dong Anh district and terminate at a forest park area in Quang Ninh's Viet Hung ward, opposite Vingroup-developed Vinhomes Ha Long Xanh urban complex.

Under the proposal, construction would begin in the fourth quarter of 2025, with completion targeted for 2027 and commercial operations starting in 2028.

VinSpeed was established on May 6 with initial charter capital of VND6 trillion ($228.3 million). Vingroup founder Pham Nhat Vuong initially held a 51% stake, while other shareholders included Vingroup (10%) and related entities and individuals.

As of December 9, VinSpeed owned about 379.1 million shares of Vingroup (HoSE: VIC), equivalent to a 9.77% stake. On December 25, the company lifted its charter capital to VND45 trillion ($1.71 billion) from VND33 trillion ($1.26 billion).

Last week, Vingroup pulled its bid for the North-South high-speed rail line to reallocate resources to other large infrastructure projects. The conglomerate said it would continue investing in other high-speed rail routes, including Ho Chi Minh City-Can Gio and Hanoi-Ha Long, with total planned investment of about VND202 trillion ($7.68 billion).

Bac Ninh, which was merged with neighboring Bac Giang into the expanded Bac Ninh province in July, is home to major foreign electronic giants, including Samsung, Goertek, Luxshare -ICT, Foxconn, Canon, and Amkor.

Earlier this month, the National Assembly, Vietnam's parliament, approved an investment plan for the Gia Binh Airport project in Bac Ninh, which will cost about VND196.38 trillion ($7.45 billion). The airport is designed to handle 30 million passengers and 1.6 million tons of cargo annually by 2030.