HCMC – The Ministry of Transport today submitted a US$67.34-billion cross-country high-speed railway project to the National Assembly.
The proposed 1,540-km line would connect northern and southern Vietnam, running through 20 provinces and cities.
Transport Minister Nguyen Van Thang presented the project at the 15th NA’s eighth sitting today, November 13, detailing a 1,435 mm double-track gauge line designed to reach speeds of up to 350 km/h. Primarily intended for passenger transport, the railway could also serve freight and national defense needs.
The route prioritizes a direct path, with plans for 23 passenger stations and five freight stations. The project is expected to require 10,827 hectares of land, potentially affecting around 120,836 people.
Funding for the railway would be sourced from public investment, averaging an annual cost of US$5.6 billion, equivalent to about 1% of Vietnam’s projected 2027 GDP. The Government aims to complete feasibility studies and design work by 2025-2026, initiate construction in 2027, and make the line operational by 2035.
While the Government views the project as a driver of economic growth and increased competitiveness, concerns have been raised regarding financial feasibility and impacts on existing infrastructure. The NA’s Economic Committee, though supportive of public investment, has requested a deeper analysis of the project’s overall efficiency.
The NA’s Finance and Budget Committee also recommended preparing for various economic scenarios to address potential financial risks stemming from global economic fluctuations.
The State Appraisal Council has expressed caution about the project’s optimistic revenue forecasts, urging a risk assessment for possible operational losses. Additionally, it highlighted that high-speed rail could reduce demand for short-haul flights, potentially affecting planned airport investments. A thorough review to ensure alignment with Vietnam’s broader transportation plans was also suggested.
