In an ambitious project, Vietnam has just announced plans for a high-speed railway line connecting Hanoi to Ho Chi Minh City. In order to connect the Vietnamese capital of Hanoi in the north to the economic hub Ho Chi Minh City in the South, a 1,541 kilometre-long high-speed railway will have to be built. Currently, the journey between the two cities takes about 30 hours but with the new train travelling at up to 350 kilometres an hour, that time will be reduced to around 5 hours.
The Vietnamese parliament, Vietnam’s National Assembly, decided on building the new high-speed railway network. The cost of $67 billion will be spread over multiple years, as the building project is planned to start in 2027 and should be completed in 2035. Once complete, it will be one of the country’s largest infrastructural works.
“This project is pivotal for restructuring transport shares and serves as a cornerstone for Vietnam’s leap into a new era of growth. It is the wish of the people and the determination of the political system to have an international-standard high-speed railway,” Deputy Minister of Transport Nguyen Danh Huy said, adding it could boost the country’s GDP by up to 0.97 percentage points on an annual basis.
On its 1,541-kilometre journey, the train will cross 20 provinces and cities. 23 passenger stations and 5 freight stations are planned to be serviced along the way. The new connection is not just set to become important for passengers but will also be used for the transportation of freight and it will serve defence purposes, according to state media. In the future, the new high-speed connection might boost tourism, trade and global supply chains.
รัฐสภา #เวียดนาม ลงมติอนุมัติโครงการ #รถไฟความเร็วสูง มูลค่า 67,000 ล้านดอลลาร์ ซึ่งจะช่วยให้การเดินทางโดยรถไฟจาก #ฮานอย ไปยัง #โฮจิมินห์ ซึ่งใช้เวลาในปัจจุบัน 35 ชั่วโมง ให้เหลือเพียง 5.5 ชั่วโมงเท่านั้น
— pone poyepoloye (@motorwars) December 2, 2024
Vietnam's parliament voted for a $67 billion high-speed railway that would… pic.twitter.com/4iZbTllRRL
Officials have already stated they want to minimise reliance on foreign funding, prioritising self-sufficient financing solutions instead. However, not everyone seems to agree this is the best option. “A hybrid model leveraging both domestic and international funding sources would be more realistic”, said Richard McClellan, country director for Vietnam at the Tony Blair Institute for Global Change.
It is not the first time a high-speed rail network between the two cities has been discussed. In 2010, the National Assembly already proposed the possibility but, back then, the project was not adopted due to the hefty price tag, which wasn’t compatible with Vietnam’s public debt. As the country has recently been experiencing a strong export sector and healthy public finance metrics, the timing now seems to be more appropriate.
