HCMC – The Vietnamese Government has proposed allowing private sector investment in the big-ticket North-South high-speed railway project, alongside the previously approved public investment model.
This critical national infrastructure project needs the involvement of private corporations, according to a proposal the Government has sent to the National Assembly. Therefore, the Government requested the legislature to permit both the public and private sectors to join the project.
The express railway, which will connect Hanoi City in the north and Ho Chi Minh City (HCMC) in the south.
The proposal comes as the Politburo’s Resolution 68 promotes private sector development and the National Assembly’s Resolution 198 supports private sector involvement in projects of national importance through direct investment or public-private partnership (PPP).
The Government explained that when the Politburo approved the cross-country high-speed railway project under a public investment framework, there was little interest from private investors. However, since Resolutions 68 and 198 came out, a couple of private conglomerates have expressed interest in participating in the project through direct private investment.
Currently, no legal framework exists to regulate PPP, direct private investment, or other alternative investment models for the high-speed railway project. This prompted the Government to seek National Assembly approval to amend Resolution 172 of 2024, which originally designated the project as publicly funded. The proposed amendment would allow for new investment models, such as PPP.
The North-South high-speed railway, a cornerstone of Vietnam’s infrastructure development, was previously greenlit for public investment under the Government’s Resolution 106, which mandated preparatory work, including land clearance and the selection of project management consultants.
In recent developments, several private investors have proposed getting involved, with a promise to shorten the execution time compared to the schedule approved in Resolution 172. These proposals still rely on state budget allocations for compensation, resettlement, and land clearance to provide investors with cleared land for construction.
The North-South high-speed railway is expected to transform Vietnam’s transportation network, fostering economic growth and regional connectivity. The Government’s push to involve private investors reflects a broader strategy to diversify funding and expedite the delivery of this project.
