High-speed rail is considered an advanced form of public transportation worldwide. Experts agree that constructing a high-speed railway along the North-South axis is essential and aligns with Vietnam’s current socio-economic development needs. Key factors supporting this project include high travel demand between the North and the South, the railway’s competitive advantages over other modes of transport, and Vietnam’s improved financial capacity, making the project viable.
The proposed high-speed railway will connect Ngoc Hoi station in Hanoi to Thu Thiem station in Ho Chi Minh City, passing through 20 provinces and cities. The route will include 23 stations, spaced an average of 67 km apart, with five freight stations linked to major logistics hubs. The goal is to complete and launch the railway by 2035.
“Currently, the highest rail speeds globally exceed 500 km/h, averaging around 380 km/h. However, due to Vietnam’s complex terrain, particularly the steep slopes in the Central region, building for such high speeds could raise safety concerns, especially during floods and storms. The decision to cap speeds at 350 km/h is, therefore, a wise and safe choice,” stated Dr. Le Xuan Nghia, a member of the National Monetary and Financial Policy Advisory Council.
Regarding funding, experts believe the government can secure the necessary capital through bonds and other financial channels without significantly impacting public debt. To ensure the project’s success, synchronized policies are required, such as addressing land clearance compensation, closely monitoring the design and construction phases, and involving modern technology companies.
“Vietnam’s financial system now exceeds $600 billion. Each year, the government issues $6 billion in bonds, just 1% of total assets—a small fraction compared to our financial capacity. We have never been in a better financial position to undertake such projects. Additional funding sources, such as local project bonds, can also be considered. But the main source of capital can come from government bonds,” Dr. Nghia emphasized.
The project management board must handle land clearance and compensation transparently and fairly, ensuring the rights of affected people are respected. Effective management and oversight systems are essential during construction, along with the integration of modern technology. Collaboration with technology firms is also necessary, creating mechanisms for risk-sharing and benefit-sharing with top contractors.
Countries across Asia have experienced significant social and economic development through high-speed rail networks. Recognizing this trend and the need for early investment, the Central Executive Committee has directed the Government Personnel Committee to expedite project documentation and submit it for consideration at the 8th session of the 15th National Assembly. Careful planning and timely execution will be crucial to avoid delays similar to those experienced with elevated railway projects in Hanoi and Ho Chi Minh City.
Related
Source: Vietnam Insider