Vietnam’s planned North–South high-speed railway, estimated at US$67 billion, is encountering financing challenges as private investors seek large state-backed loans to proceed. Regulators have warned that providing government guarantees and interest subsidies for up to 80 per cent of project costs would expose the state to significant fiscal risks and threaten public debt safety.
The proposed 1,545 km high-speed line would connect Hanoi and Ho Chi Minh City and is intended to be developed through a PPP structure. Firms including VinSpeed (Vingroup) and Truong Hai Group (Thaco) have submitted interest. Thaco has requested government guarantees and full interest subsidies for 30-year loans covering 80 percent of costs, while VinSpeed has stated it will only participate if the state provides a 30-year, zero-interest loan for the same share.
The Ministry of Construction noted that no country has delivered a high-speed rail project of similar scale without substantial government funding. A draft National Assembly resolution proposes a mechanism allowing up to 80 per cent state capital under the PPP model, but whether this will satisfy private-sector demands remains unclear as Vietnam prepares for a 2026 project rollout.