Vietnam to consider Vinspeed proposal to build high-speed railway
HANOI () – The Vietnamese government plans to review a proposition put forth by Vinspeed, a firm founded by wealthy entrepreneur Pham Nhat Vuong, for constructing a high-speed rail system spanning the entire nation, as stated in an official government document.
In November, lawmakers from the Southeast Asian industrial center endorsed a $67 billion initiative aimed at constructing a 1,541 km (957.53 miles) long railroad connecting the capital city of Hanoi with the commercial hub of Ho Chi Minh City.
As stated in the document dated Thursday and seen by , the authorities “fundamentally endorse and appreciate the proposition put forth by Vinspeed.”
VinSpeed, formerly VinSpeed High-Speed Railway Investment and Development Joint Stock Company, submitted the proposal this week, stating it would finish the railway’s construction by 2030. This timeline is five years ahead of the target set by the government, according to state-run media reports.
Vinspeed stated that the expense of the railway would amount to 1,562 trillion dong ($60.26 billion), not including expenses related to clearing the construction sites, according to reports from the Ministry of Industry and Trade’s publication, Cong Thuong.
The firm, established this month by Vuong, stated it will secure 20% of the funding internally and obtain the rest, which amounts to 80%, as a loan from the government with zero interest over a period of 35 years, as reported.
Vingroup did not promptly reply to requests for commentary.
The government has tasked the Ministry of Construction with gathering input from relevant ministries and agencies to develop a resolution by May 20 for submission to the National Assembly, which serves as the nation’s legislative body.
In October, the Ministry of Transport announced that Vietnam would finance the entire railway project using its own funds. This move showcased the communist-led nation’s hesitance towards accepting foreign loans.
Vuong serves as the chairman of Vingroup, which started as a real estate and retail giant but has expanded to become one of Vietnam’s largest companies. The firm is also the parent company of VinFast, an electric vehicle manufacturer listed on Nasdaq with a valuation of $11.7 billion.
($1 = 25,920 dong)
(Reporting by Khanh Vu and Francesco Guarascio; Additional reporting by Phuong Nguyen; Editing by Ed Osmond)