Hanoi: The Vietnamese government is set to evaluate a proposal by Vinspeed High-Speed Railway Investment and Development JSC, a newly formed company established by Vingroup Chairman and billionaire Pham Nhat Vuong, to construct a high-speed railway spanning the length of the country, according to an official document reviewed by the international news agency Reuters.
In November, lawmakers approved a sweeping $67 billion infrastructure plan to develop a 1,541-kilometer (958-mile) high-speed railway connecting the capital Hanoi to the economic hub of Ho Chi Minh City. The proposal from Vinspeed aligns with this vision and aims to accelerate the timeline for completion.
The government document, dated Thursday, noted that authorities “basically support and welcome the proposal from Vinspeed.” State media reported that Vinspeed has committed to completing the railway by 2030 — five years ahead of the government’s current target.
According to the Cong Thuong newspaper, published by the Ministry of Industry and Trade, Vinspeed estimated the cost of the project at 1,562 trillion dong (approximately $60.26 billion), excluding expenses for site clearance. The company intends to finance 20% of the investment and has requested the remaining 80% be provided by the state through a 35-year loan at 0% interest.
Vingroup, Vinspeed’s parent company, confirmed the proposal in a statement to Reuters.
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“Vinspeed is currently negotiating with partners from countries with expertise in railway industries such as China, Germany, and Japan to receive technology transfers and manufacture locomotives, carriages and signal and control systems in Vietnam,” Vingroup stated. “The company will also quickly organise personnel training and master technology to take the initiative in developing the country’s railway industry,” it added.
The Vietnamese government has tasked the Ministry of Construction with gathering input from other relevant ministries and agencies to draft a resolution. The final proposal is scheduled to be submitted to the National Assembly, the country’s legislative body, by May 20.
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In a policy move made last October, Vietnam’s transport ministry announced that the high-speed railway project would be funded entirely through domestic resources — reflecting the country’s cautious approach to foreign borrowing.
Vingroup, once a traditional real estate and retail conglomerate, has diversified significantly and now ranks among Vietnam’s largest enterprises. It is also the parent company of Nasdaq-listed electric vehicle manufacturer VinFast, currently valued at $11.7 billion.
