Private firms urged to fast-track documents for North-South railway construction
The Minister of Construction has requested VinSpeed High-Speed Rail Investment and Development JSC and Truong Hai Group Joint Stock Company (Thaco) to complete documents seeking approval of their proposals to invest in the North-South high-speed railway.
The two enterprises were also urged to finalise documents for submission to the Ministry of Finance and competent sectors for investment policy approval in accordance with the Law on Investment. Earlier, the Politburo had issued Resolution No. 68 on the private sector development, encouraging private firms to engage in the national strategic projects such as high-speed railway, urban railway, and spearhead industries.
VinSpeed has proposed a total investment of over VND1.56 quadrillion (US$61.35 billion) for the high-speed rail project, excluding compensation and relocation costs for site clearance. Under their financing structure, VinSpeed will arrange 20% of the total project capital, equivalent to VND312.33 trillion, while seeking an interest-free state loan for the remaining amount over a 35-year period from the date of disbursement.
It plans to break ground on the project before December 2025 and complete the entire rail line for commercial operation before December 2030. The firm is negotiating technology transfer agreements with partners from the countries with a leading railway industry including China, Germany, and Japan for the domestic manufacturing of locomotives, carriages, and signalling systems.
Thaco has made a similar proposal with a total investment of over VND1.56 quadrillion for the project, with the site clearance work to be handled by the State and excluded from the total capital.
Under its financing model, Thaco will contribute 20% of the total investment while mobilising the remaining 80% through domestic and foreign credit institutions with full government guarantee and interest subsidisation over 30 years.
Thaco proposed implementing the project in two phases over seven years, applying electrified rail-on-track technology meeting international standards. The company plans to collaborate with domestic enterprises in receiving technology transfers from leading global partners in Europe, including Germany and France, and Asia, particularly Japan and the Republic of Korea.
High-speed North-South railway project: minimising foreign labour dependence
With the development of the high-speed North-South railway project, the focus has turned to training a local workforce to minimise dependence on foreign expertise in express rail operations.
