Southeast Asia (SEA) is undergoing a transformative shift in transportation infrastructure, with high speed rail (HSR) emerging as a key driver of regional integration, trade and connectivity. Backed by strategic investments, public-private partnerships (PPPs) and international collaboration, nations across the region are developing ambitious HSR networks to cut travel time, enhance cross-border mobility and stimulate economic growth. While China has played a dominant role through its Belt and Road Initiative (BRI), new players, both domestic and global, are entering the space, reshaping the competitive landscape.

HSR infrastructure growth

The SEA region is witnessing a surge in HSR development, driven by strategic investments and regional collaboration.

Laos

The Lao PDR-China Railway (LCR) is a 1,035 km cross-border corridor linking Kunming in China to Vientiane. Construction began in 2016, and operations commenced in December 2021, with cross-border passenger services starting in April 2023. The Laos section spans 422 km and the railway has reduced travel time between Vientiane and Boten from 15 hours by road to just four hours by rail.

Thailand

Thailand is currently implementing two key HSR projects. The Thailand-China HSR (TCHSR), a 608 km line connecting Bangkok to Nong Khai, is under construction in two phases. Phase 1 (Bangkok-Nakhon Ratchasima spanning 251 km) is around 36 per cent complete and expected to be operational by 2028. Phase 2 (Nakhon Ratchasima-Nong Khai spanning 357 km) is scheduled for completion by 2031. Trains will run at speeds of up to 250 km/hr using Chinese standards. Separately, the three-airport HSR project, a 220 km line valued at around $6 billion, will connect Don Mueang, Suvarnabhumi and U-Tapao airports with Pattaya. The revised contract for the project is expected to receive cabinet approval by August 2025.

Indonesia

Indonesia launched the Jakarta-Bandung HSR (JBHSR) in October 2023. This 142 km line, developed under the BRI, cost over $7 billion and operates at speeds of up to 350 km/hr across four stations. In June 2025, the government announced plans to extend the line to either Semarang or Surabaya via the southern or northern corridor. However, no formal regulation has been issued and a joint feasibility study with China is pending.

Vietnam

Vietnam is advancing the $67 billion North-South HSR project (NSHSR), spanning 1,541 km between Hanoi and Ho Chi Minh City. Construction is scheduled to begin by December 2026 and be completed by 2035. Trains will run at 350 km/hr, cutting travel time from 30 hours to just five hours. Additionally, construction of the Ho Chi Minh City-Can Tho HSR, with an extension to Ca Mau, is scheduled for 2027 and 2028 respectively.

Malaysia

In January 2025, the Government of Malaysia announced plans to revive the Kuala Lumpur-Singapore HSR (KLSHSR) project. Initially estimated at $17 billion, the project aims to reduce travel time to 90 minutes, with bilateral discussions currently under way with Singapore authorities.

Boosting cross-border connectivity

HSR projects in SEA are transforming cross-border connectivity and enabling faster regional trade. Central to this effort is the Pan-Asian Rail Network (also known as the Kunming-Singapore Railway), linking China’s Kunming to Singapore via Laos, Thailand and Malaysia. Once completed, this corridor will reduce the total travel time from Kunming to Singapore from 90 hours to 30 hours, and eventually to 18 hours by 2040. The LCR is already operational, and the TCHSR is expected to reach Nong Khai by 2031, creating a continuous rail artery through Vientiane to Bangkok. The final segments will connect northern Malaysia to Kuala Lumpur and on to Singapore. Freight movement will also be significantly enhanced, with trains expected to reach speeds of up to 150 km/hr. Altogether, these projects are expected to streamline logistics, deepen trade integration and strengthen economic ties within SEA and with China.

Growing Chinese influence

China’s influence in SEA’s HSR landscape has expanded significantly, largely through the BRI. Since the initiative’s launch in 2013, Chinese companies, technology and funding have played a pivotal role in reshaping the region’s railway infrastructure.

Despite China’s growing presence, several challenges persist. Many of these projects have become politically contentious, marred by delays, high costs and public scepticism about debt sustainability. The LCR is Laos’s largest infrastructure project and China’s first international railway, built and financed primarily by Chinese firms. At a cost of $6 billion, nearly 40 per cent of Laos’s gross domestic product, it underscores China’s significant financial leverage over the landlocked country. Similarly, in Indonesia, the JBHSR, developed with Chinese backing after beating Japanese competition in 2015, began operations in 2023. While the project reduced travel time from three hours to 40 minutes, it faced delays and cost overruns. Additionally, if not extended beyond Bandung, it may be seen as an expensive project with limited returns. The TCHSR is another major BRI project, but it too has seen prolonged negotiations and slow progress, largely due to political instability and disputes over financing and land use.

Further, narrow-gauge systems, colonial legacies in many SEA countries, pose technical hurdles as China prefers building new standard-gauge lines rather than upgrading existing networks. This preference stems from the significant costs involved in upgrading narrow-gauge systems, which require major infrastructure overhauls, whereas building new standard-gauge lines enables the use of modern technology, ensuring better interoperability and speed benefits.

However, Chinese involvement also brings clear benefits. China has demonstrated adaptability in engineering and rail technology, and its rail diplomacy has enhanced connectivity and bilateral co-operation. Completed projects like the LCR and the JBHSR are already reducing travel and transport times. Additionally, new partnerships, such as the China-Vietnam agreement signed in August 2024 to build standard-gauge links, show continued momentum.

Minimising risk through PPPs and diversification

There has been greater private sector investment and diversification of international partnerships beyond China in the development of HSR in SEA. Governments are increasingly turning to PPPs to address fiscal constraints and attract international expertise.

Diversifying exposure

Vietnam exemplifies this shift. In July 2025, Germany’s Siemens expressed interest in participating in Vietnam’s ambitious NSHSR project, joining a growing list of international and domestic players. Earlier, in June 2025, Mekolor JSC of Vietnam and Great USA Incorporation of the US submitted a proposal to fully finance and develop the project without government funding or guarantees. In April 2025, the South Korean government announced full-package support for Vietnam’s HSR, mobilising companies such as Hyundai engineering and construction (E&C), Daewoo E&C, GS E&C, and Hyundai Rotem. France, too, reaffirmed its commitment in March 2025, offering technology, expertise and concessional loans to support railway modernisation. Vietnam is also working towards self-reliance in railway manufacturing. In June 2025, the Hoa Phat Group signed a deal with Germany’s SMS Group to build a high-capacity rail steel production line, targeting completion by March 2027, making it SEA’s first manufacturer of HSR-grade steel rails.

Thailand, in collaboration with Japan, is progressing on its Bangkok-Chiang Mai HSR. Though this line may face interoperability issues with China-backed networks, Japan’s continued involvement reflects a counterbalance to China’s dominance.

Embracing PPPs

Elsewhere, in June 2025, Indonesia’s transport ministry announced growing private interest in extending the JBHSR to Semarang or Surabaya. The government supports PPP models to advance the next phase due to budgetary limitations.

In January 2025, Malaysia revived its KLSHSR plan with full private sector funding and minimal government involvement. In May 2025, Vinspeed High-speed Railway Investment and Development JSC, a subsidiary of Vingroup, proposed to fund 20 per cent ($12 billion) of the estimated project cost for Vietnam’s NSHSR, with the remaining 80 per cent ($49 billion) to be covered through zero-interest government loans repayable over 35 years. THACO, another Vietnamese conglomerate, proposed a similar financing model involving private capital and credit institutions.

In sum

HSR projects across SEA are poised to reshape regional connectivity and economic integration. While their efficiency and long-distance benefits are clear, decisions to implement such systems must be weighed against financial and social costs.

China, as the world’s largest rail technology provider, has played a dominant role through the BRI, launching and supporting several major HSR projects across SEA. However, amid economic headwinds, China is expected to prioritise completion of existing projects over initiating new HSR ventures in the region.

At the regional level, many SEA governments may also lack the fiscal space or political will to pursue additional mega projects until current efforts reach completion. Despite these challenges, SEA’s

HSR ambitions are driving a modern rail renaissance, laying the groundwork for a more connected and economically cohesive future.