HCMC – Vietnam would begin work on its long-awaited north-south high-speed railway project in 2027, according to Transport Minister Nguyen Van Thang.
The timeline reflects projections of rising transport demand and national readiness, Thang said during the National Assembly’s eighth session on November 20, reported the Government news site baochinhphu.vn.
The project has been under review for 18 years, with studies incorporating international expertise to ensure safety and efficiency. Extensive evaluations have aligned the rail system with master plans for Hanoi City and HCMC.
The high-speed rail will primarily focus on passenger transport, with separate projects addressing freight needs. High freight demand in areas such as Lang Son Province and Can Tho City influenced the decision not to extend the high-speed line there.
Instead, waterways and coastal shipping will remain the primary methods for transporting goods due to their cost and environmental advantages.
Approximately 24% of the project’s total investment will be sourced from export credits to procure essential equipment, including trains and signaling systems. The Government is also evaluating both domestic and foreign loan options, prioritizing low-interest Official Development Assistance (ODA) loans with no restrictive conditions.
“If ODA loans have low interest rates and no attached conditions, they are an excellent option. Otherwise, domestic loans will be prioritized,” Thang explained.
The transport minister emphasized the importance of engaging international consultants for project management and oversight, given the unprecedented complexity of the high-speed rail project for Vietnam.
