The Ministry of Construction of Vietnam has proposed a set of special mechanisms and financial incentives to attract investors for the North-South high-speed railway project. Proposed measures include government-backed loans covering up to 80 per cnet of approved investment capital at 0 per cent interest for up to 30 years, import duty exemptions for equipment and materials, and revenue risk-sharing for PPP investors for the first three years of operation. The draft resolution has been submitted to the Ministry of Justice for review.
The proposals apply to projects under both business investment and public-private partnership (PPP) models. Loans under the scheme would not count towards banks’ credit exposure limits. Investors must submit detailed implementation schedules, capital mobilisation plans, and disbursement roadmaps. Project parameters such as track gauge, design speed, and load capacity cannot be altered during execution. Priority is required for domestic products and services, and foreign partners are expected to transfer technology and train local personnel.
The North-South high-speed railway is Vietnam’s flagship high-speed rail corridor. Once operational, it is expected to significantly reduce travel times between northern and southern regions, support increased passenger volumes, and strengthen economic connectivity. The proposed financial and policy framework is designed to de-risk investment, encourage private participation, and ensure long-term sustainability and technology transfer.