US$67.3 billion high speed railway project sails through National Assembly

National Assembly deputies press the button approving the US$67.3 billion North-South high speed railway project

This ambitious railway line will stretch approximately 1,541 km from Ngoc Hoi Station in Hanoi to Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces. It will feature double-track lines, a 1,435 mm gauge, and a design speed of 350 km/h. Along the route, there will be 23 passenger stations, each with an adjacent development zone of 200 to 500 hectares, and five freight stations, each around 24.5 hectares in size.

The line will primarily transport passengers, but it is also designed to be dual-purpose, supporting national defense and security needs. In addition, the system will have the capability to transport goods when required.

The preliminary total investment for the project is estimated at US$67.3 billion, with funding sourced from the state budget allocated in mid-term public investment plans and other legal financial sources. The project is expected to have its feasibility study report completed by 2025, and to be completed by 2035.

In a summary report on feedback, revisions, and explanations regarding this project, the National Assembly Standing Committee stated that the majority of delegates agreed on the necessity of investing in the North-South high-speed railway project. They agreed that the project plays a crucial role in realizing the Party guidelines and State policies, and creating a breakthrough in socio-economic development, as well as modernizing transportation infrastructure.

However, some delegates suggested that all factors and risks should be carefully taken into account to come up with feasible solutions that are suitable for Vietnam’s conditions.

The verifying agency affirmed that the project has been studied and prepared for investment over a long period (approximately 18 years) and has referenced experiences from countries with developed high-speed rail systems to complete the pre-feasibility study report. This report analyzes and calculates the forecast transport demand, potential, and Vietnam's current position, indicating that the country is in suitable conditions to implement the project.

Meanwhile, the Politburo and the Party Central Committee have discussed the investment policy, as well as the factors and conditions for project implementation, in great detail.

However, as calculations at the pre-feasibility stage were preliminary, the Government has been requested to direct relevant agencies to continue specific calculations in the next phase of the feasibility study, by thoroughly assessing factors and risks, and providing appropriate solutions to ensure the project's feasibility.

Under the approved resolution, the National Assembly allowed the project to apply special and specific mechanisms and policies. Specifically, during the project’s implementation, the Prime Minister is authorized to decide on issuing government bonds to supplement the budget and annual investment plans for the project if the allocated state budget is insufficient to meet the timeline.

In addition, the Prime Minister is also authorized to mobilize Official Development Assistance (ODA) funds, preferential foreign loans, and use any additional revenue or savings in the government’s budget if available, as well as other legal financial sources, to support the project if the state budget allocation falls short of meeting the required timeline.