As of the end of 2020, there had been 20 countries in the world having high-speed rail (HSR) networks totaling 58,839 kilometers. Excluding China, only three of these countries had HSR lines exceeding 1,500 kilometers in length. If Vietnam were to invest in and complete its entire HSR system, it would join the top five countries with the longest high-speed rail networks in the world—twice the length of the United States’ HSR system. But the crucial question remains how Vietnam can mobilize nearly US$70 billion, and which model should it adopt to invest in such a system. Models of capital mobilization and contracts for HSR deployment When discussing HSR financing, international studies typically divide financial resources into two categories: funding and financing. Funding refers to the upfront cash flow used before construction to cover expenses such as studies, feasibility analyses, and environmental impact assessments, as well as the post-construction cash flow needed for operation and maintenance of the infrastructure. Financing, on the other hand, is defined as “the investment capital required to acquire land corridors, and to design, construct, and put into operation the associated infrastructure systems.” In most HSR projects, the financing portion represents the largest financial requirement. To […]