1-4-2024 (HANOI) Vietnam is embarking on an ambitious endeavour to develop its inaugural high-speed railway network, drawing inspiration from China’s extensive rail infrastructure, the government revealed. Plans are underway for a rail line spanning the length of the country, covering a distance of 1,545 kilometres.
According to state media reports, Vietnam aims to construct this high-speed system at an estimated cost of up to US$72 billion, equivalent to 17% of its gross domestic product.
A statement released by the government over the weekend highlighted Vietnam’s eagerness to glean insights from China’s well-established railway industry, particularly in technology, financial mobilisation, and management expertise.
The announcement coincided with the visit of Vietnam’s Minister of Planning and Investment, Nguyen Chi Dung, to China. During his visit, Minister Dung engaged in discussions with Chinese trade and transport officials as well as railway executives.
The collaboration between Vietnam and China in the railway sector was reinforced by numerous cooperation agreements signed during Chinese President Xi Jinping’s visit to Hanoi in December.
Vietnam had previously sought support from Japan for the development of its high-speed railway, as disclosed by the government last year.
Despite longstanding plans by Vietnam, Thailand, and other nations in Southeast Asia to introduce high-speed rail, progress in the region has been sluggish. Laos, Vietnam’s neighbouring country with lower development status, is the sole Southeast Asian nation with a high-speed rail system, funded by Chinese loans despite economists’ warnings of potential long-term debt burdens.
The government has not yet disclosed a timeline for the implementation of Vietnam’s high-speed rail system. The proposal is slated for submission to parliament for approval later this year.
