HCMC – VinSpeed, an affiliate of Vietnamese diversified business conglomerate Vingroup, has expressed interest in a big-ticket high-speed railway that connects the north and south of the nation.
VinSpeed High-Speed Railway Investment and Development Joint Stock Company has officially registered to invest in the North-South high-speed rail project, a transformative infrastructure initiative aimed at revolutionizing Vietnam’s transportation and economic landscape by 2030.
The project aligns with the Party and State’s resolutions, including Resolution 57-NQ/TW on advancing science, technology, innovation, and digital transformation, and Resolution 68-NQ/TW on private sector development.
VinSpeed’s plan reflects a commitment to establishing a high-speed rail industry, driving economic growth, and enhancing living standards across Vietnam.
Project overview and financial structure
The North-South high-speed rail project would require approximately US$61.35 billion, excluding costs for compensation, relocation support, and land clearance. VinSpeed will finance 20% of the amount, equivalent to US$12.27 billion, while proposing the Government provide interest-free loans over 35 years from the date of disbursement to cover the remaining 80%.
This financing model would significantly reduce pressure on the State budget. Compared to the plan approved under Resolution No. 172/2024/QH15 of the National Assembly, VinSpeed’s proposal offers a more sustainable approach to public spending.
Development timeline and technologies
VinSpeed plans to break ground on the project before December 2025 and get the entire rail line done by December 2030. To achieve this, the company is working with global rail industry players from countries such as China, Germany, and Japan for technology transfers. These partnerships will enable the production of locomotives, carriages, and signaling and control systems within Vietnam.
To ensure long-term self-reliance, VinSpeed will prioritize training programs to build a skilled workforce capable of mastering advanced rail technologies, fostering the growth of a domestic high-speed rail industry.
Urban development impact
To support loan repayment and maximize economic benefits, VinSpeed will collaborate with Vingroup and Vinhomes to develop modern urban centers near and around railway stations using the Transit-Oriented Development (TOD) model.
These developments will transform underutilized areas around stations, often located far from city centers, into vibrant hubs with comprehensive amenities. This initiative is expected to boost tourism, elevate living standards, and stimulate local economies.
Dao Thuy Van, deputy general director of VinSpeed, was quoted by the local media as saying that the project is a historic milestone for Vietnam’s private sector, reflecting the strong support and expectations of the Party, State, and citizens.
“Despite the challenges ahead, VinSpeed is determined to act decisively and creatively to deliver this project,” she said. “With our business acumen and flexibility, we are confident in generating revenue to cover costs and repay loans on schedule.”
She said VinSpeed would partner with domestic firms to develop the entire rail line simultaneously, fostering a robust national high-speed rail industry.
With charter capital of VND6,000 billion, VinSpeed is the latest flagship in the ecosystem founded by billionaire Pham Nhat Vuong. The company aims to elevate Vietnam’s global standing and contribute to the nation’s prosperity in a new era of the nation’s rise.
