Vinspeed High-speed Railway Investment and Development JSC (Vinspeed), a subsidiary of Vingroup, one of the largest conglomerates in Vietnam, has submitted a proposal to the Government of Vietnam to fund the North–South high speed rail (HSR) project. The project involves development of a HSR line connecting Hanoi and Ho Chi Minh City (HCMC), two largest cities in the country. The HSR line will span 1,541 km and cover 23 passenger stations and five freight stations across 20 provinces and cities. Passenger services are expected to commence in 2030.
The project involves an investment of around USD61 billion. Of this, 20 per cent of the project cost (around USD12.2 billion), will be raised by Vinspeed. The remaining 80 per cent of the project cost (around USD48.8 billion) will be financed through zero-interest loans from the Government of Vietnam, repayable over 35 years from the date of disbursement. The company has also announced plans to partner with its parent company and Vinhomes to develop comprehensive urban areas near key railway stations, based on the Transit-Oriented Development (TOD) model to generate revenue to repay the loan.
The company plans to commence construction by December 2025. It has also entered into discussions with manufacturers in China, Germany and Japan to facilitate transfer of technology and domestic manufacturing of rolling stock and signaling systems.
