Scale of the US$67-billion railway project

The North-South high-speed railway is a nationally important project approved in principle by the National Assembly, involving a large scale of investment and advanced engineering and technology requirements.

Under the approved plan, the railway will stretch about 1,541 km, running from Ngoc Hoi Station in Hanoi to Thu Thiem Station in Ho Chi Minh City. Following the recent administrative restructuring, the line will pass through 15 provinces and cities.

The project will involve a new double-track railway along the entire route, using the 1,435-mm standard gauge and designed for speeds of up to 350 km/h. The line will include 23 passenger stations and five freight stations.

The railway is primarily intended for passenger transport, while also meeting dual-use requirements for national defence and security and allowing freight services when necessary.

The preliminary total investment is estimated at more than VND1.7 quadrillion (about US$67.34 billion), making it one of the largest transport infrastructure projects ever undertaken in Vietnam.

The project was initially approved by the National Assembly for implementation through public investment. During the preparation process, however, a number of companies and business groups expressed interest in participating, prompting further consideration of ways to mobilise resources from outside the State budget. The National Assembly subsequently allowed the project to be implemented under additional investment models, including public-private partnerships (PPP) and business investment, alongside public investment.

The Ministry of Construction is now studying and selecting the most appropriate investment model based on the proposed technology, practical requirements and the project’s overall efficiency.

A new driver of growth

The North-South high-speed railway is expected to serve as more than a modern transport link, opening up new development space for localities along the route.

Once operational, the line will strengthen connections between Hanoi and Ho Chi Minh City and major urban and economic centres along the North-South corridor, shortening travel times and facilitating economic exchanges, trade, tourism and daily travel.

The project is also expected to provide a major boost to infrastructure development, industrialisation and modernisation, strengthen economic corridors and expand the development space of localities along the route.

High-speed railway stations could become focal points for new urban areas, services and economic centers, supporting transit-oriented urban development and closer integration between public transport and urban planning.

Given its scale and long implementation period, the project could also create room for Vietnam’s domestic railway industry to expand, from infrastructure construction and equipment manufacturing to workforce training for the future operation and maintenance of the system.

Preparations gather pace

A substantial volume of work is under way as the project moves through the investment preparation stage.

According to the Ministry of Construction, the project owner has signed a contract for a project consultancy support package. The consultant has completed the preparation of the assignment, cost estimate and bidding documents for the feasibility study report package.

Procedures are now under way to select consultants for surveying, preparation of the feasibility study report, supervision of surveys and preparation of the environmental impact assessment report.

Land clearance is also being carried out through separate projects, allowing local authorities to take the lead in implementation. According to the Ministry of Construction, the project is expected to require about 10,827 hectares of land, with approximately 120,836 people estimated to require resettlement.

Following the administrative restructuring, the railway will pass through 15 provinces and cities.

The Government previously issued a plan for implementing the approved investment policy, covering tasks ranging from consultant selection and preparation and appraisal of the feasibility study report to land clearance, contractor selection and construction.

As the project plan has been adjusted during implementation, preparatory work is continuing with the December 2027 groundbreaking target in mind.

Targeting groundbreaking in December 2027

At a meeting on September 8 on the implementation of major national railway projects, Minister of Construction Tran Hong Minh asked relevant agencies to draw up detailed plans specifying individual tasks, deadlines and responsibilities.

For the North-South high-speed railway, the minister called for maximum efforts to break ground on the project in December 2027.

Meeting that target will require the completion of a number of major tasks, including surveys, preparation and approval of the feasibility study report, land clearance, design work, division and selection of construction packages, and fulfillment of the conditions required to begin construction.

The Ministry of Construction has also asked relevant agencies to establish detailed schedules covering land acquisition, consultancy, surveys and construction. They are also reviewing how to divide packages for infrastructure, stations, rolling stock, equipment and materials, with an emphasis on using domestic products and services to strengthen local production capacity.

If the planned schedule is maintained, December 2027 will mark a major transition for the project from investment preparation to construction on the ground. The ultimate target is to substantially complete the North-South high-speed railway by 2035.