Vietnam-based Thaco Group has submitted a proposal to invest in the country’s North-South high-speed railway, following a similar bid by Vingroup’s VinSpeed subsidiary. Thaco plans to invest USD61.35 billion, with 20 per cent equity from itself and the rest through domestic and foreign loans. The government is asked to guarantee and cover loan interest for 30 years. The project will use modern electrified rail technology, with technology transfers from leading European and Asian partners, including Germany, France, Japan, and South Korea. Thaco intends to establish a project company and collaborate with domestic enterprises on manufacturing and infrastructure development, including transit-oriented urban development near stations.
The project is planned in two phases: the first phase connecting Ho Chi Minh City to Nha Trang and Hanoi to Ha Tinh is expected to finish within five years, while the second phase covering the mountainous Ha Tinh to Nha Trang segment will take an additional two years due to challenging terrain.
Previously, Vingroup’s VinSpeed proposed a USD60.24 billion investment for the railway, with 20 per cent equity and 80 per cent zero-interest loans from the state budget repayable over 35 years. VinSpeed aims to start construction by the end of 2025 and complete the railway by 2030. Both proposals emphasise reducing fiscal pressure on the national budget and include technology transfer agreements with international partners.