Vietnam has announced ambitious plans to construct a high-speed railway stretching over 1,500 kilometers, connecting the capital Hanoi in the north to the southern economic hub of Ho Chi Minh City. The landmark project, valued at $67 billion, was approved by the National Assembly on Saturday (Nov 30). It promises to revolutionize Vietnam’s infrastructure, drastically reduce travel times, and bolster the nation’s standing as a preferred destination for foreign investment.
The high-speed rail project aims to slash the current 30-hour rail journey between the two cities to just five hours, significantly improving convenience for travelers and businesses alike.
“This is a breakthrough in our infrastructure,” said Deputy Minister of Planning and Investment Tran Quoc Phuong. He emphasized that the railway will boost Vietnam’s GDP growth by an estimated 0.97 percentage points annually. “It is the wish of the people and the determination of the political system to have an international-standard high-speed railway,” Phuong added.
The project is seen as vital for Vietnam’s economic development. By enhancing connectivity between regions, the railway will facilitate the movement of goods and people, increase productivity, and solidify Vietnam’s role in global supply chains. Dan Martin, International Business Advisor at Dezan Shira & Associates, hailed the project as a move that will “supercharge the Vietnamese economy,” highlighting its potential to reduce lead times and optimize logistics.
Vietnam’s transport infrastructure has long been a bottleneck for economic growth. The country ranks 52nd on the Global Quality Infrastructure Index, significantly lagging behind other ASEAN nations. Its expressway density is one of the lowest in the region, and road transport costs remain high. The existing rail system is underdeveloped, limiting its effectiveness for cargo and passenger transport.
The project’s approval comes at a time of growing demand for improved infrastructure, fueled by Vietnam’s emergence as a manufacturing hub and an alternative to China for foreign businesses. A decade ago, the National Assembly shelved a similar project due to concerns over its $56 billion cost. However, with the evolving economic landscape and successful examples of high-speed rail in neighboring countries like Laos and Indonesia, the momentum has shifted.
“For Vietnam, it’s about becoming an even stronger player in a region that’s rapidly embracing high-speed rail,” said Martin. Indeed, high-speed rail networks are becoming integral to Southeast Asia’s economic transformation, linking cities and fostering regional trade and tourism.
The new rail line will traverse 20 provinces and cities, with 23 planned stations. This extensive network is expected to improve connectivity between Vietnam’s urban centers, industrial zones, and rural areas. Enhanced regional connectivity is poised to unlock economic potential in previously underdeveloped areas, offering new opportunities for businesses and individuals.
For everyday citizens, the railway represents a significant upgrade in travel convenience. “The high-speed railway will make it more convenient for many people to travel,” said Pham Dang Quang, a university student who frequently travels between Hanoi and Hai Phong. Quang expressed excitement about the prospect of making a round trip between Hanoi and Ho Chi Minh City in a single day.
While the project is generating widespread optimism, it is not without challenges. Vietnam’s track record with large infrastructure projects has been marred by delays and budget overruns. Hanoi’s second metro line, which opened this year, was delayed by nearly a decade, while Ho Chi Minh City’s first metro route, originally scheduled for 2018, has yet to commence operations.
The high-speed railway is slated to begin construction in 2027, with a targeted completion date in 2035. Delivering the project on time and within budget will require careful planning, efficient execution, and strong political commitment.
Financing the $67 billion project is another hurdle. Vietnam is likely to rely on a combination of domestic funding and international investments. With global interest in Southeast Asia’s infrastructure boom, Vietnam could attract foreign partners willing to contribute expertise and capital. However, ensuring transparent and efficient use of resources will be critical to maintaining public and investor confidence.
The high-speed railway is expected to strengthen Vietnam’s appeal to foreign investors by addressing one of the country’s most significant weaknesses: inadequate infrastructure. Improved logistics and connectivity will make Vietnam an even more attractive destination for multinational corporations seeking alternatives to China amid ongoing global trade shifts.
By enabling faster transportation of raw materials and finished goods, the railway will enhance the competitiveness of Vietnam’s manufacturing sector. This could lead to increased foreign direct investment (FDI), further integrating the country into global supply chains.
Additionally, the project aligns with Vietnam’s broader goals of transitioning to a more sustainable and technologically advanced economy. High-speed rail offers a greener alternative to road and air transport, reducing carbon emissions and supporting Vietnam’s commitments to environmental sustainability.
The railway has sparked widespread excitement among Vietnamese citizens, many of whom see it as a long-overdue development. For students, professionals, and businesspeople, the prospect of faster, more reliable transportation is a significant quality-of-life improvement.
“The ability to travel quickly between Hanoi and Ho Chi Minh City will open up new opportunities for me and my family,” said Nguyen Thanh Ha, a small business owner in Da Nang, one of the cities along the proposed route.
However, there is also cautious optimism, given the country’s history of infrastructure delays. Many hope that lessons learned from past projects will translate into smoother execution this time around.
Vietnam’s high-speed railway is part of a broader trend in Southeast Asia, where countries are investing heavily in modern transportation networks. Laos recently launched its high-speed rail line connecting Vientiane to China, and Indonesia inaugurated its Jakarta-Bandung high-speed rail line earlier this year. These projects reflect the region’s commitment to fostering economic integration and connectivity.
By joining the high-speed rail club, Vietnam positions itself as a forward-looking nation ready to compete on the global stage. The project could also strengthen ties with international partners, particularly those involved in financing and construction, such as Japan, South Korea, and China.
