HCMC – The development of urban railway networks in Hanoi and HCMC is projected to require more than VND3 quadrillion, according to the Ministry of Transport.
In a draft resolution on special mechanisms for the development of urban railway systems in Hanoi and HCMC, the ministry said that both cities aim to complete their mass rapid transit networks by 2035, easing traffic congestion, reducing pollution, and enhancing transport safety. The plan includes 17 metro lines with a total length of 752 km, expected to serve 35–50% of public transport demand. By 2045, an additional 355 km of metro lines will be built, increasing metro ridership to 50–60%.
Funding will come from a mix of central and local budgets. The central Government is expected to contribute VND424.85 trillion, while Hanoi and HCMC will allocate VND1.17 quadrillion and VND1.47 quadrillion, respectively. The ministry emphasized that the central Government’s funding spread over a decade is feasible and will not significantly impact fiscal balance.
The draft resolution proposes flexible financing mechanisms, enabling both cities to tap into increased local revenue, cost savings, and official development assistance (ODA). The proposal also seeks to streamline approval processes, replacing certain investment decision steps with front-end engineering design (FEED) to accelerate project execution.
To support transit-oriented development (TOD), the plan allows for urban planning adjustments around metro stations, encouraging higher population density and increased commercial activity. It also aims to develop a domestic rail industry by incentivizing technology transfer and workforce training.
The Government plans to submit the resolution to the National Assembly in February for approval.
