Vietnam Approves $67 Bln High-Speed Rail Project

Vietnam's National Assembly has approved an ambitious high-speed railway project costing an estimated $67 billion.

The railway will connect the country's capital, Hanoi, in the north, to Ho Chi Minh City, formerly Saigon, in the south, spanning over 1,500 kilometers.

The high-speed trains, capable of reaching speeds of up to 350 km/h, will reduce travel time between Hanoi and Ho Chi Minh City to about five hours. This makes it a competitive alternative to domestic flights in terms of both time and cost.

The railway will traverse 20 cities and provinces.

Due to challenging terrain, 60% of the track will be elevated on bridges, 10% will pass through tunnels, and 30% will run at ground level.

Construction is set to begin in 2027, with the first operational section, a 400-kilometer stretch between Ho Chi Minh City and the coastal city of Nha Trang, expected to launch by 2035.

The majority of the project's funding will come from state resources or domestic loans. However, Vietnam is open to considering foreign development aid if it comes with favorable terms and low interest rates.