Vietnam to spend over $58 billion for north-south high-speed railway
Vietnam now has earmarked up to $58.7 billion for its planned high-speed railway from the north to the south of the nation, the government said on August 14.
The country’s transport ministry will in September submit a proposal to build the 1,545-kilometer railway to the Politburo, the decision-making body of the ruling Communist Party of Vietnam, Reuters cited a government news release.
The railway is a key public transport project to swiftly connect Ho Chi Minh City with all important coastal cities and finally with Hanoi and from there will have two more connections to Kunming and Nanning in China.
Ground breaking for the line is planned for 2028. Work would begin at both ends simultaneously; in the north, this would be a 250-kilometer section between Hanoi and Vinh, and in the south a 450-kilometer line between Ho Chi Minh and Nha Trang.
First two sections ready by 2032
The first two sections with total investment of $24.7 billion would be open to traffic by 2032, the government said, adding that the entire project would be completed between 2045 and 2050.
The financing of the high-speed railway project has not been revealed in detail yet. But like in the energy sector, the government is likely to approach private investors and development agencies to raise funds in addition to provide funding from the state budget.
For example, Vietnam’s Prime Minister Pham Minh Chinh in July asked the Japan Bank for International Cooperation, a financial institution for overseas development, to support Vietnam in building railway.
Higher cost for faster speed
Vietnam previously planned to spend just $26 billion on the railway to run at a “cost-effective” 200 km/h. In the latest proposal, the train is designed to run at 320 km/h, thus the higher cost.
Vietnam, a regional manufacturing hub, is ramping up its investment in both transport and energy infrastructure to support its fast-growing economy.
Vietnam now has earmarked up to $58.7 billion for its planned high-speed railway from the north to the south of the nation, the government said on August 14. The country’s transport ministry will in September submit a proposal to build the 1,545-kilometer railway to the Politburo, the decision-making body of the ruling Communist Party of Vietnam, Reuters cited a government news release. The railway is a key public transport project to swiftly connect Ho Chi Minh City with all important coastal cities and finally with Hanoi and from there will have two more connections to Kunming and Nanning in China....
Vietnam now has earmarked up to $58.7 billion for its planned high-speed railway from the north to the south of the nation, the government said on August 14.
The country’s transport ministry will in September submit a proposal to build the 1,545-kilometer railway to the Politburo, the decision-making body of the ruling Communist Party of Vietnam, Reuters cited a government news release.
The railway is a key public transport project to swiftly connect Ho Chi Minh City with all important coastal cities and finally with Hanoi and from there will have two more connections to Kunming and Nanning in China.
Ground breaking for the line is planned for 2028. Work would begin at both ends simultaneously; in the north, this would be a 250-kilometer section between Hanoi and Vinh, and in the south a 450-kilometer line between Ho Chi Minh and Nha Trang.
First two sections ready by 2032
The first two sections with total investment of $24.7 billion would be open to traffic by 2032, the government said, adding that the entire project would be completed between 2045 and 2050.
The financing of the high-speed railway project has not been revealed in detail yet. But like in the energy sector, the government is likely to approach private investors and development agencies to raise funds in addition to provide funding from the state budget.
For example, Vietnam’s Prime Minister Pham Minh Chinh in July asked the Japan Bank for International Cooperation, a financial institution for overseas development, to support Vietnam in building railway.
Higher cost for faster speed
Vietnam previously planned to spend just $26 billion on the railway to run at a “cost-effective” 200 km/h. In the latest proposal, the train is designed to run at 320 km/h, thus the higher cost.
Vietnam, a regional manufacturing hub, is ramping up its investment in both transport and energy infrastructure to support its fast-growing economy.
