Vietnam Approves $67 Billion North-South High-Speed Railway: A Transformative Infrastructure Milestone

Vietnam’s parliament has approved public investment for its largest infrastructure project yet: a US$67 billion North-South high-speed railway connecting Hanoi to Ho Chi Minh City. The railway, spanning 1,500 kilometres across 20 cities and provinces, will operate at speeds of 350 kilometres per hour. Construction is set to begin in 2027, with completion expected by 2035.

The project will rely primarily on domestic funding, with financing from the state budget, government bonds, and other eligible sources. Experts, however, highlight the need for foreign capital for technology and expertise-intensive aspects of the railway. Vietnam’s low public debt—at 37% of GDP in 2023—and a robust export sector position it well for financing such critical infrastructure.

A consultancy consortium comprising TEDI, TRICC, and TEDIS estimates the railway could create a US$33.5 billion construction market within Vietnam. The strategic reliance on domestic funds reflects Vietnam’s fiscal stability and ambition to develop transformative infrastructure with minimal external dependency.

This landmark project underscores Vietnam’s growing economic strength and its commitment to modernising infrastructure for long-term growth.

Original article by Jamille Tran for the The Business Times. Read more here, or click on the PDF below.

Vietnam approves public investment for US$67 billion North-South express rail.pdf

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