Vietnam reviews Vinspeed's $61 billion plan for North-South high-speed railway
WVR/VNA - On May 14, Vinspeed officially registered to invest in the North-South high-speed railway project. It plans to borrow 80% of the total investment as an interest-free loan from the State with a 35-year term.
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| An illustration of the North-South high-speed railway. (Photo: Vietnam.vn) |
Vinspeed’s investment proposal for the North-South high-speed railway is now open for written feedback from ministries and departments before it will be submitted to higher authorities for consideration, according to a recent official document by the Government Office.
Issued by Deputy Prime Minister Tran Hong Ha, the document is an official conclusion from the Government’s May 12 meeting on the proposal.
At the meeting, ministerial and agency representatives gave initial support toward the initiative of VinSpeed JSC, a company part of the ecosystem of Vietnam's conglomerate VinGroup. It also aligns with the Politburo’s Resolution No 68-NQ/TW, which encourages the private sector’s participation in key national projects.
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However, the proposal includes a change in investment form and suggests certain special policies and mechanisms, which must be reported to higher authorities, including the National Assembly (NA).
In the Government’s conclusion, Deputy Prime Minister Ha instructed the Ministry of Construction (MoC) to compile a report based on the investor’s proposal and feedback from relevant ministries and sectors. This report will be submitted to higher authorities and the NA before May 20, 2025.
The Ministry of Finance (MoF) is tasked with evaluating the feasibility of switching from public to direct investment, as well as the State’s lending capacity as per the proposal.
This Ministry will also review special policies and mechanisms suggested for the project, such as interest-free State loans with a 35-year term, the project duration of 99 years, the minimum fare levels, and other investment incentives under current laws.
The State Bank of Vietnam is responsible for reviewing, assessing, and commenting on the policy that exempts the project’s total outstanding loan from being counted towards Vingroup’s total outstanding loan balance under the Law on Credit Institutions, as recommended by the finance ministry.
The Ministries of Agriculture and Environment, Justice, Public Security, National Defence, Industry and Trade, and Science and Technology assess the impact of the mechanisms and policies included in Vinspeed’s proposal, according to the scope of work.
These assessments will be compiled and submitted to the MoC before May 19, which will also be sent to the Party Committees of the construction ministry and of the Government.
The Government’s conclusion also stated that Vinspeed is responsible for working with the MoC and the MoF to complete the proposal dossier, including a comparative analysis between public and private investment models that specifies feasibility, completion timeline, and investment efficiency.
Should the investment policy be approved, Vinspeed has the responsibility to carry out its proposed commitments, researching and building a railway industry system, and leading the supply chain development.
Vinspeed officially registered to invest in the North-South high-speed railway project on May 14.
The project is estimated to require an investment of approximately VND1.56 quadrillion (US$61.35 billion), excluding compensation and resettlement costs for site clearance.
Initial planning stated that Vinspeed will be responsible for 20% of the total investment, equivalent to VND312.33 trillion ($12.27 billion).
For the remaining 80% (excluding compensation and resettlement costs), Vinspeed proposes borrowing from the State as an interest-free loan with a 35-year term from the date of disbursement.
Vinspeed said it hopes to begin construction before December 2025 and accelerate progress so the entire railway line can be operational before December 2030.
(Source: VNA)
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