HCMC – Truong Hai Group (Thaco) has submitted a proposal to the Prime Minister seeking approval to directly invest in the North-South high-speed railway project with an estimated cost of over VND1.5 quadrillion (US$61.35 billion).
According to the proposal dated June 25, Thaco commits to self-financing 20% of the total investment, which is estimated at US$12.3 billion, through equity and legal domestic capital sources. The remaining US$49 billion would be borrowed from local and international credit institutions, on the condition that the Government guarantees the loans and covers interest payments over a 30-year period. The loans would be secured using the project-formed assets.
The proposed investment does not include costs for land clearance and resettlement, which Thaco suggests should be handled by the State under a separate project.
Thaco plans to execute the project in two phases over seven years. In the first five years, the Hanoi–Ha Tinh and HCMC–Nha Trang sections would be built, targeting areas with high transport demand. The more technically challenging middle section from Ha Tinh to Nha Trang would be developed in the final two years.
The high-speed railway would be built to international electrification standards, with design speeds of up to 350 km/h. Thaco intends to collaborate with partners from Europe and Asia, including Germany, France, Japan, and South Korea, for technology transfer and workforce training.
To implement the project, Thaco will establish a project company in which it will hold a controlling interest. It will invite participation from domestic conglomerates but exclude foreign investors from acquiring shares or operating rights. The company also proposes a 70-year operating period.
Thaco is also seeking priority access to land for urban development along the route using the Transit-Oriented Development (TOD) model. Additional incentives requested include exemptions from import taxes on machinery and equipment not produced domestically, and the application of maximum investment incentives under current regulations.
The proposal follows the National Assembly’s approval of the railway’s investment policy through Resolution 172/2024. The 1,541-kilometer railway will stretch from Ngoc Hoi Station in Hanoi to Thu Thiem Station in HCMC, passing through 20 provinces and cities. The project is considered a strategic infrastructure initiative with a total investment estimated at over US$67 billion under the public investment model, with completion targeted by 2035.
Previously, other local enterprises such as Hoa Phat, Deo Ca, and VinSpeed also expressed interest in the project. VinSpeed proposed a similar direct investment model, committing 20% equity and requesting an interest-free state loan for the remaining capital over 35 years.
