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Miami Herald
20-05-2025
- Business
- Miami Herald
New $60B High-Speed Rail Planned in Asia
The Vietnamese government is evaluating a $60 billion proposal to construct a high-speed railway from Hanoi to Ho Chi Minh City. If approved and completed, the high-speed railway would stand among Asia's largest infrastructure undertakings and sharply reduce travel times between Vietnam's capital and its southern business center. Lawmakers had previously approved a $67 billion plan for the railway in November 2024, and earlier discussions occurred with China State Construction, China's largest construction firm, about possible involvement. Hanoi, Vietnam's capital, has a population of 8.7 million, while Ho Chi Minh City has a population of 9.9 million. The plans were submitted by Vinspeed, a company founded by Vietnamese billionaire Pham Nhat Vuong. They outline a 957-mile line that would, in theory, be delivered five years ahead of the government's earlier timeline. The proposed project would have a total cost of 1,562 trillion dong, approximately $60.3 billion, though that price does not include site clearance expenses. Vinspeed has committed to finance 20 percent of the total investment and seeks the remaining 80 percent, equivalent to about $48 billion, from the Vietnamese government at a 0 percent interest rate over 35 years. The company wants to begin construction this year and finish it by the end of the decade, a timeline that Western high-speed rail projects would balk at. A passenger train is considered high-speed if it travels at least 124 mph on upgraded tracks or 155 mph on new tracks. More than 20 countries currently have high-speed rail networks, and many other countries in Asia, such as South Korea, China, and Japan, are considered leaders in the industry. China has established the world's most extensive high-speed railway network in just two decades. Since the first line launched in 2008, the network has grown to roughly 25,000 miles, more than double the combined length of the rest of the world's high-speed railways and long enough to circle the Earth. Vinspeed has said that it is currently discussing a technology transfer with premier partners from China and Japan for domestic production of locomotives, carriages, and signaling systems, because of the success these countries have had with high-speed rail. The Ministry of Construction planned to submit the collected feedback and a finalized resolution to Vietnam's National Assembly by Tuesday. Vinspeed aims to start construction by the end of 2025 and have the rails fully operational by December 2030. Related Articles Upholding Religious Freedom Abroad Advances America's Vital National Interests | OpinionUS Travel Warnings for Middle East, Asia Amid Iran TensionsAsian Imports Into US Collapse Amid Trump Tariff WarsTrump Tariffs Like 'Delinquent Kid Extorting Somebody'-Japanese Lawmaker 2025 NEWSWEEK DIGITAL LLC.
Newsweek
20-05-2025
- Business
- Newsweek
New $60B High-Speed Rail Planned in Asia
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Vietnamese government is evaluating a $60 billion proposal to construct a high-speed railway from Hanoi to Ho Chi Minh City. If approved and completed, the high-speed railway would stand among Asia's largest infrastructure undertakings and sharply reduce travel times between Vietnam's capital and its southern business center. The Context Lawmakers had previously approved a $67 billion plan for the railway in November 2024, and earlier discussions occurred with China State Construction, China's largest construction firm, about possible involvement. Hanoi, Vietnam's capital, has a population of 8.7 million, while Ho Chi Minh City has a population of 9.9 million. What To Know The plans were submitted by Vinspeed, a company founded by Vietnamese billionaire Pham Nhat Vuong. They outline a 957-mile line that would, in theory, be delivered five years ahead of the government's earlier timeline. The proposed project would have a total cost of 1,562 trillion dong, approximately $60.3 billion, though that price does not include site clearance expenses. Vinspeed has committed to finance 20 percent of the total investment and seeks the remaining 80 percent, equivalent to about $48 billion, from the Vietnamese government at a 0 percent interest rate over 35 years. The company wants to begin construction this year and finish it by the end of the decade, a timeline that Western high-speed rail projects would balk at. A metro train runs through Ho Chi Minh City, Vietnam, on April 28, 2025. A metro train runs through Ho Chi Minh City, Vietnam, on April 28, 2025. Getty Images High Speed Rail in Southeast Asia A passenger train is considered high-speed if it travels at least 124 mph on upgraded tracks or 155 mph on new tracks. More than 20 countries currently have high-speed rail networks, and many other countries in Asia, such as South Korea, China, and Japan, are considered leaders in the industry. China has established the world's most extensive high-speed railway network in just two decades. Since the first line launched in 2008, the network has grown to roughly 25,000 miles, more than double the combined length of the rest of the world's high-speed railways and long enough to circle the Earth. Vinspeed has said that it is currently discussing a technology transfer with premier partners from China and Japan for domestic production of locomotives, carriages, and signaling systems, because of the success these countries have had with high-speed rail. What Happens Next The Ministry of Construction planned to submit the collected feedback and a finalized resolution to Vietnam's National Assembly by Tuesday. Vinspeed aims to start construction by the end of 2025 and have the rails fully operational by December 2030.
The Star
18-05-2025
- Business
- The Star
Vietnam to consider Vinspeed proposal to build high-speed railway
HANOI (Reuters): The Vietnamese government will consider a proposal from Vinspeed, a company established by billionaire Vingroup Chairman Pham Nhat Vuong, to develop a high-speed railway running the length of the country, a government document showed. Lawmakers in the South-East Asian industrial hub in November approved a $67 billion plan to build the 1,541-km (958-mile) railway line linking the capital Hanoi with business hub Ho Chi Minh City. The authorities "basically support and welcome the proposal from Vinspeed", said the document dated Thursday and reviewed by Reuters. Vinspeed, formally known as Vinspeed High-Speed Railway Investment and Development JSC, submitted the proposal this week, saying it would complete the construction of the railway by 2030, five years earlier than previously targeted by the government, state media reported. Vinspeed said the cost of the railway would be 1,562 trillion dong ($60.26 billion), excluding costs for site clearance, the Ministry of Industry and Trade's Cong Thuong newspaper reported. The company, founded this month by Vuong, said it would arrange 20% of the investment and borrow the remaining 80% from the state at a 0% interest rate for 35 years, according to the report. Vinspeed's parent company Vingroup confirmed the plan in a statement to Reuters. "Vinspeed is currently negotiating with partners from countries with expertise in railway industries such as China, Germany, and Japan to receive technology transfers and manufacture locomotives, carriages and signal and control systems in Vietnam," Vingroup said in a statement. "The company will also quickly organise personnel training and master technology to take the initiative in developing the country's railway industry," it added. The government has assigned the construction ministry to seek opinions from related ministries and agencies to draft a resolution by May 20 to submit to the National Assembly, the country's lawmaking body. In October, the transport ministry said Vietnam would fund the railway entirely on its own, in a demonstration of the Communist-run country's reluctance to accept foreign loans. Vingroup, once a real estate and retail conglomerate that has grown to become one of Vietnam's biggest firms, is also the parent of Nasdaq-listed electric vehicle maker VinFast with a market capitalisation of $11.7 billion. ($1 = 25,920 dong) (Reporting by Khanh Vu and Francesco Guarascio; Additional reporting by Phuong Nguyen; Editing by Ed Osmond) - Reuters
The Star
17-05-2025
- Business
- The Star
North-south mega rail project taking shape
The nation's biggest conglomerate, Vingroup, said it had submitted a proposal to build the country's multi-billion-dollar high-speed railway from Hanoi to Ho Chi Minh City, with state media reporting the government had welcomed the plan. The project – which was slated to cost US$67bil when it was approved in November – is a much-needed boost to infrastructure that is expected to drive growth and enhance Vietnam's reputation among foreign investors. The line will stretch more than 1,500km from the capital in the north, to the country's business hub in the south, and reduce the current journey time by rail from 30 hours to around five. Vingroup confirmed yesterday that they had submitted a proposal to the government to build the line. In a press statement, Vinspeed, a newly established company as part of the Vingroup empire, said the project would cost US$61bil (RM261.2bil), and would start in December and be finished by 2030 – five years ahead of the schedule set out last year. Following a meeting on May 12, various ministries and agencies largely welcomed and supported Vingroup's proposal, according to state-controlled newspaper Tuoi Tre. Vietnam has one of the lowest expressway densities in the region, although the country is pushing to expand it, and road transport costs are among the highest. The country has been an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment. — AFP
The Star
16-05-2025
- Business
- The Star
Vietnam's Vingroup eyes multi-billion dollar high-speed rail project
The North-South high-speed railway is one of the country's key national projects. — Courtesy of Ministry of Construction HANOI: Vietnam's biggest conglomerate, Vingroup, said Friday (May 16) it had submitted a proposal to build the country's multi-billion-dollar high-speed railway from Hanoi to Ho Chi Minh City, with state media reporting the government had welcomed the plan. The project -- which was slated to cost US$67 billion when it was approved in November -- is a much-needed boost to infrastructure that is expected to drive growth and enhance Vietnam's reputation among foreign investors. The line will stretch more than 1,500km from the capital in the north, to the country's business hub in the south, and reduce the current journey time by rail from 30 hours to around five. Vingroup confirmed to AFP Friday (May 16) that they had submitted a proposal to the government to build the line. In a press statement, Vinspeed, a newly established company as part of the Vingroup empire, said the project would cost $61 billion, and would start in December and be finished by 2030 -- five years ahead of the schedule set out last year. The company said it would commit to mobilising 20 per cent of the total capital, equivalent to $12.27 billion. It proposed a zero-interest loan from the state for the remaining 80 per cent, excluding costs related to compensation and resettlement for land clearance. "We will exert our best efforts... to develop the project... (and) pay the loans in due time," Dao Thuy Van, deputy director of Vinspeed, said in the statement. The statement added that Vinspeed's proposal "will significantly help reduce pressure for the state budget". Vietnam's rubber-stamp National Assembly had in 2010 scrapped the high-speed project, then estimated at $56 billion, over fears it was too costly. Following a meeting on May 12, various ministries and agencies largely welcomed and supported Vingroup's proposal, according to state-controlled newspaper Tuoi Tre. The government said it wanted to reach a decision before May 22, which would then be submitted to the National Assembly, which is currently in session. Vingroup, parent group of Nasdaq-listed electric vehicle maker VinFast, is hugely powerful in Vietnam, and its business interests span everything from healthcare to real estate and education to tech. The conglomerate is owned by Vietnam's richest man, Pham Nhat Vuong. Last month, Vingroup broke ground on a $9 billion dollar real estate project in a southern coastal area home to a Unesco-listed mangrove forest. Communist-run Vietnam has one of the lowest expressway densities in the region, although the country is pushing to expand it, and road transport costs are among the highest. The country has been an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment. - AFP
