Vietnam government to consider proposal to build $60bn high-speed railway

Delegates at the discussions between the Committee for Management of State Capital and CSCEC (Image: CMSC)

Vinspeed, a company founded by Vietnamese billionaire Pham Nhat Vuong, has put forward the proposal for the 1,541km (957.5 mile) line, according to a government document seen by Reuters.

Lawmakers in the country approved a $67 billion plan for the railway that would link the capital Hanoi with business hub Ho Chi Minh City in November 2024.

State media reported that Vinspeed, formally known as Vinspeed High-speed Railway Investment and Development JSC, submitted the proposal this week. The proposal suggests Vinspeed would complete the construction of the railway by 2030, five years earlier than previously targeted by the government, and for 1,562 trillion dong ($60.3 billion), excluding costs for site clearance.

It said it would arrange 20% of the investment and borrow the remaining 80% from the state at a 0% interest rate for 35 years, according to the report.

The government has assigned the Ministry of Construction to seek opinions from related ministries and agencies to draft a resolution by 20 May to submit to the National Assembly, the country’s lawmaking body.

In October, the Ministry of Transport said Vietnam would fund the railway entirely on its own.

Vuong is the chairman of Vingroup, once a real estate and retail conglomerate that has grown to become one of Vietnam’s biggest firms and is the parent of Nasdaq-listed electric vehicle maker VinFast with a market capitalisation of $11.7 billion.

In October last year, news emerged that Vietnam’s government has discussed the construction of the high-speed railway at a meeting with China’s biggest construction company, China State Construction (see image above).