HANOI,Vietnam.May 19(Nikkie) — Vietnamese conglomerate Vingroup, led by billionaire founder Pham Nhat Vuong, has submitted a bold proposal to construct and operate a $61 billion high-speed railway linking Hanoi and Ho Chi Minh City. The 1,541-kilometer rail project, approved by Vietnam’s parliament in December 2024, aims to slash travel time between the two cities from 35 hours to just five.
Vuong’s newly established firm, VinSpeed, pledged to cover 20% of the estimated ₫1,562 trillion ($61 billion) cost and requested a 35-year, interest-free government loan for the remaining 80%. VinSpeed also urged authorities to handle land clearance and relocation for approximately 120,000 residents along the route—a process historically prone to delays in Vietnam. The company aims to break ground by December 2025 and complete the project by 2030, five years ahead of the state’s original timeline.
The proposal arrives as Vietnam prioritizes private-sector growth under Communist Party leadership. Resolution 68, a national strategy, targets private firms contributing 55% of GDP by 2030. However, concerns linger over Vingroup’s lack of rail experience and financial stability after its EV subsidiary, VinFast, reported a $3.2 billion loss in 2024.
VinSpeed plans to collaborate with global rail leaders like China, Germany, and Japan for technology transfers and domestic manufacturing of trains and signaling systems. To offset risks, it proposed developing transit-oriented urban projects near stations with Vingroup’s real estate arm, Vinhomes, while stressing that land-use fees would be paid “fully and fairly.”
Deputy CEO Dao Thuy Van emphasized partnerships with local firms to “develop Vietnam’s high-speed rail industry.” Steel giant Hoa Phat also announced plans to produce railway-grade steel by 2027.
